Every morning we put out a report with the latest news in global stock markets, company news, and global economic news. Stocks in focus today include; MA, CMCSA, ADP, HOG, COST, BMW, GLE, MS, EMC
Morning Market Update
- US: Dow Futures: 12990.00 (0.32%), S&P 500 Futures: 1378.30 (0.27%), NASDAQ Futures: 2651.50 (0.57%)
- Europe: CAC: 3325.63 (1.02%), DAX: 6777.24 (0.07%), FTSE: 5699.34 (1.12%)
- Asia-Pacific: Australia: 4262.80 (-0.15%), China: 2123.36 (0.93%), Hong Kong: 19820.38 (0.12%), India: 5240.50 (0.22%), Japan: 8641.85 (-0.62%).
- Metals: Gold: 1606.80 (-0.23%), Silver: 27.63 (-1.02%), Copper: 3.40 (-0.64%)
- Energy: Crude Oil: 88.48 (0.48%), Natural Gas: 3.14 (-2.15%)
- Commodities: Corn: 7.95 (-1.01%), Soya Bean: 16.25 (-0.26%), Wheat: 8.82 (-2.14%)
- Currency: EUR/USD: 1.2312 (0.07%), GBP/USD: 1.5635 (-0.27%), USD/JPY: 78.1900 (0.09%)
- 10 year US Treasury: 1.502% (0.034)
Financial and Economic News Update
U.S. stock-index futures trading higher: U.S. stock index futures are pointing to a higher open on Wednesday as investors await the Federal Reserve’s policy announcement this afternoon for clues on more stimulus measures to support the economy. The Fed is due to announce its latest policy statement at 2:15 P.M. ET. In economic news, Automatic Data Processing and consultancy Macroeconomic Advisers said July private sector employment increased by 163,000. Economists were expecting 108,000 new private sector jobs last month. The Dow Jones industrial average, S&P 500 and NASDAQ futures were trading marginally in the green.
European markets trading in the green: European markets are trading higher on Wednesday with the German DAX (INDEXDB:DAX) up 0.1 percent at 6777.24, the FTSE 100 (INDEXFTSE:UKX) jumped 1.1 percent to 5699.34, and the CAC 40 (INDEXEURO:PX1) rose 1 percent to 3325.63. The euro zone blue-chip ESTX 50 PR.EUR (INDEXSTOXX:SX5E) (Euro Stoxx 50) was up 0.5 percent.
Asian markets end mostly higher: Asian markets closed higher on Wednesday with Japan’s NIKKEI 225 (INDEXNIKKEI:NI225) closing 0.6 percent lower at 8,641.85 points. The HANG SENG INDEX (INDEXHANGSENG:HSI) ended up 0.1 percent at 19,820.4, while the SSE Composite Index (SHA:000001) gained 0.9 percent to 2,123.4. The S&P/ASX 200 (INDEXASX:XJO) index lost 6.35 points to 4,262.8. The benchmark Indian 30-share BSE SENSITIVE (INDEXBOM:SENSEX) index rose 0.02 percent to 17,239.06 points.
Stocks in Focus
Mastercard Inc (NYSE:MA), the world's second-largest credit and debit card network, posted second quarter adjusted net income of $5.65 a share that beat the average analysts’ estimate of $5.58 a share. Revenue for the quarter came in at $1.82 billion, less than market expectations of $1.88 billion.
Comcast Corporation (NASDAQ:CMCSA) reported second-quarter profit of $1.35 billion, or 50 cents a share that beat the average analysts’ estimate of 48 cents a share. Revenue increased 6.1 percent to $15.21 billion, from the year-ago quarter. Comcast added 158,000 phone customers and 156,000 high-speed Internet subscribers during the quarter.
Time Warner Inc. (NYSE:TWX) posted second quarter adjusted earnings of 59 cents per share, which topped Street estimates by a penny. Revenue for the quarter came in at $6.7 billion that missed analysts’ expectations of $6.94 billion. The media company maintained its full-year profit forecast.
Payroll processor Automatic Data Processing (NASDAQ:ADP) said fourth quarter net earnings increased to $258.4 million, or 53 cents per share, from $241.8 million, or 48 cents per share in the same quarter last year. Total revenue rose 5 percent to $2.6 billion from $2.51 billion a year ago.
Hospira, Inc. (NYSE:HSP) posted second quarter earnings excluding items of 51 cents per share on sales of $1.03 billion that beat consensus estimates of earnings excluding items of 49 cents per share on $987.02 million in revenue. The pharmaceutical and medical device company also reaffirmed its full-year earnings forecast.
Avon Products, Inc. (NYSE:AVP) reported second quarter earnings excluding certain items of 20 cents a share, a penny below analysts’ expectations. Revenue declined 9 percent to $2.59 billion, also below estimates of $2.66 billion.
Commodities exchange operator IntercontinentalExchange Inc (NYSE:ICE) posted an 18 percent increase in second quarter profit to $143.2 million, or $1.95 a share, from the year-ago profit of $121.4 million, or $1.64 a share. Total revenue increased 8% to $351.2 million, boosted by higher transaction and clearing fees.
RR Donnelley & Sons Company (NASDAQ:RRD) reported second quarter earnings excluding items of 49 cents per share, 6 cents above the average analysts’ estimate. Revenue for the quarter stood at $2.53 billion, lower than Street expectations of $2.57 billion. The printing company reiterated its full-year guidance.
Harley-Davidson, Inc. (NYSE:HOG) said second quarter profit jumped 30 percent to $247.3 million, or $1.07 per share, from $190.6 million, or 81 cents per share, a year ago. Revenue increased 17 percent to $1.57 billion from the year-ago period. Analysts were expecting a profit of $1.05 per share on $1.64 billion in revenue.
Oil and gas company, Devon Energy Corporation (NYSE:DVN) posted second quarter earnings excluding items of 55 cents a share that was much lower than consensus estimates of 81 cents per share. The Oklahoma City company also said that Japan’s Sumitomo Corp (TYO:8053) will acquire a 30 percent stake in Devon’s Cline Shale and Midland-Wolfcamp Shale assets, in a deal worth $1.4. Costco Wholesale Corporation (NASDAQ:COST) reported a better than expected 7 percent increase in July same-store sales. Net sales increased 8 percent last month to $7.25 billion, from $6.74 billion in the year-ago period.
Energy provider Dominion Resources, Inc. (NYSE:D) posted a 23 percent drop in second quarter profit to $258 million, or 45 cents per share, from $336 million, or 58 cents per share, a year ago. Revenue declined 9 percent to $3.01 billion.
Electric utility Exelon Corporation (NYSE:EXC) reported second quarter earnings excluding one-time items of 61 cents per share that fell short of the average analysts’ average estimate of 63 cents per share.
Navigation device maker Garmin Ltd. (NASDAQ:GRMN) posted second quarter earnings excluding items of 98 cents per share, on revenue of $718 million. Analysts were expecting earnings of 67 cents per share, on revenue of $686.5 million.
Analysts at Deutsche Bank have upgraded Wal-Mart Stores, Inc. (NYSE:WMT) to “hold” from “sell.” The stock was largely unchanged in New York pre-market trading.
- Asia-focused bank Standard Chartered PLC (LON:STAN) (HKG:2888) said first half net profit increased 12 percent to $2.81 billion, from $2.52 billion in the same period last year. Analysts were expecting a profit of $2.70 billion. Revenue for the half stood at $9.51 billion, and the London-based bank reiterated its full-year target of double digit growth in revenue and earnings per share.
- German luxury automaker Bayerische Motoren Werke AG (ETR:BMW) (FRA:BMW) reported a 28 percent decline in second-quarter net profit, partly due to higher costs, but managed to narrowly beat earnings estimates. The world’s best-selling premium auto maker kept its full-year outlook, but warned of tougher times ahead.
- Struggling phone maker Nokia Corporation (ADR) (NYSE:NOK) (HEL:NOK1V) (AMS:NOKA) soared 17 percent in Helsinki trading following stronger sales of its flagship Lumia smartphone, and share purchases by Chief Executive Stephen Elop and several board members.
- French bank Societe Generale SA (EPA:GLE) reported a worse than expected drop in second quarter earnings, hit by write-downs on assets in the US and Russia. The Paris-based lender, however, said that it was well on track to meet Europe’s new capital rules that come into force next year.
- British clothing chain Next plc (LON:NXT) reported better than expected first half sales, driven by strong performance at its online division, and raised its full-year profit forecast.
- Mediaset SpA (BIT:MS), the Italian broadcaster controlled by