Every morning we puts out a news report with the latest news in global stock markets, company news, and global economic news.
Morning Market Update
Market Levels
- US: Dow Futures: 12923.00 (0.72%), S&P 500 Futures: 1376.50 (1.07%), NASDAQ Futures: 2651.25 (1.25%)
- Europe: CAC: 3327.48 (2.86%), DAX: 6781.67 (2.59%), FTSE: 5764.89 (1.78%)
- Asia-Pacific: Australia: 4221.50 (-1.12%), China: 2132.80 (1.01%), Hong Kong: 19666.18 (-0.12%), India: 5215.70 (-0.23%), Japan: 8555.11 (-1.15%).
- Metals: Gold: 1590.80 (0.01%), Silver: 27.10 (0.39%), Copper: 3.32 (0.74%)
- Energy: Crude Oil: 88.15 (1.17%), Natural Gas: 2.90 (-0.72%)
- Commodities: Corn: 7.94 (-0.16%), Soya Bean: 16.16 (0.02%), Wheat: 8.84 (0.54%)
- Currency: EUR/USD: 1.2271 (0.75%), GBP/USD: 1.5553 (0.24%), USD/JPY: 78.7600 (0.66%)
- 10 year US Treasury: 1.548% (0.071)
Financial and Economic News Update
U.S. stock-index futures trading higher: U.S. stock index futures are pointing to a higher open on Friday amid a stronger than expected jobs report. Non-farm payrolls increased by a seasonally adjusted 163,000 jobs in July, against economists expectations of about 100,000 new jobs. The unemployment rate for July came in at 8.3 percent. The Dow Jones industrial average, S&P 500 and NASDAQ futures were all trading around a percent higher.
European markets jump higher: European markets are trading significantly higher on Friday with the German DAX (INDEXDB:DAX) up 2.6 percent at 6781.67, the FTSE 100 (INDEXFTSE:UKX) gained 1.8 percent to 5764.89, and the CAC 40 (INDEXEURO:PX1) rallied 2.9 percent to 3327.48. The euro zone blue-chip ESTX 50 PR.EUR (INDEXSTOXX:SX5E) (Euro Stoxx 50) was soared 3.2 percent.
Asian markets end mostly lower: Asian markets closed lower on Friday with Japan’s NIKKEI 225 (INDEXNIKKEI:NI225) closing 1.1 percent lower at 8,555.11. The HANG SENG INDEX (INDEXHANGSENG:HSI) closed down 0.1 percent at 19,666.2, while the SSE Composite Index (SHA:000001) closed up 1 percent at 2132.80 points. The S&P/ASX 200 (INDEXASX:XJO) index fell 48.0 points to 4,221.5. The benchmark Indian 30-share BSE SENSITIVE (INDEXBOM:SENSEX) index ell 0.1 percent to 17,206.38 points.
Stocks in Focus
U.S.
· The Procter & Gamble Company (NYSE:PG)reported fourth quarter earnings excluding some items of 82 cents a share that beat the average analysts’ estimate of 77 cents a share. Sales declined 1 percent to $20.21 billion, missing estimates of $20.26 billion. The maker of Tide laundry detergent and Duracell batteries also announced a new share buy-back program worth $4 billion.
· Viacom, Inc. (NASDAQ:VIAB) posted third quarter adjusted earnings of 97 cents a share, 3 cents below analysts’ estimates. Revenue fell 14 percent to $3.24 billion, also missing estimates of $3.49 billion.
· NYSE Euronext (NYSE:NYX) posted second quarter earnings excluding items of 51 cents a share, one cent above consensus estimate. Revenue fell 9 percent to $602 million from $661 million a year earlier. Share trading declined 8 percent to $300 million, while derivatives trading dipped 15 percent to $182 million.
· The Washington Post Company (NYSE:WPO) said second quarter net income from continuing operations fell 28.6 percent to $34.0 million, or $4.48 cents per share, from $47.6 million, or $6.00 per share, a year earlier. Revenue declined 5 percent to $1.01 billion from $1.06 billion.
· United Continental Holdings Inc (NYSE:UAL), the Chicago-based parent of United Airlines, has reached a tentative contract agreement with its pilots union.
· Britain’s biggest drugmaker GlaxoSmithKline plc (ADR) (NYSE:GSK) (LON:GSK) has completed the $3 billion acquisition of biotech company Human Genome Sciences (NASDAQ:HGSI).
· EOG Resources, Inc. (NYSE:EOG) reported second quarter earnings excluding items of $1.16 per share against analysts’ estimates of 91 cents per share. The Houston-based natural gas and oil producer also lifted its full-year production growth target.
· Professional networking site Linkedin Corporation (NYSE:LNKD) reported second quarter revenue of $228.2 million that beat estimates of $216.3 million. The company also raised its full-year outlook.
· Restaurant reservations manager OpenTable Inc (NASDAQ:OPEN) posted second quarter earning per share of 42 cents, five cents above estimates, with revenue also topping estimates. The company also raised its full-year outlook, amid a surge in demand.
· Beazer Homes USA, Inc. (NYSE:BZH) posted a narrower fiscal third-quarter net loss of $39.9 million or 40 cents per share, amid higher home prices and new orders, but results missed estimates. Total revenue for the quarter came in at $254.6 million, also trailing estimates of $263.89 million.
· Skullcandy Inc (NASDAQ:SKUL) reported second quarter earnings per share of 24 cents, two cents above estimates. The maker of specialty headphones saw sales increase 38 percent to $72.4 million, against estimates of $65.9 million.
Europe
- Royal Bank of Scotland Group plc (ADR) (NYSE:RBS) (LON:RBS) reported a 22 percent decline second quarter operating profit to 650 million pounds ($1 billion), in line with analysts’ estimate of 649 million-pound. Revenue fell to 11.26 billion pounds from 15.3 billion pounds a year earlier. The British bank further said it faces several potential lawsuits over its alleged involvement in a global interest rate rigging scandal
- Business software giant SAP AG (ADR) (NYSE:SAP) (ETR:SAP) (FRA:SAP) has agreed to pay at $306 million to rival Oracle Corporation (NASDAQ:ORCL) in a copyright-infringement lawsuit over a now-defunct software SAP unit’s downloading of Oracle software.
- Europe’s biggest insurance group Allianz SE (ETR:ALV) (FRA:ALV) reported second quarter net profit of 1.3 billion euros ($1.6 billion) that beat estimates of 1.21 billion euros. The German insurer also confirmed its full-year operating profit guidance.
- German engineering company Siemens AG (ADR) (NYSE:SI) (ETR:SIE) (FRA:SIE) has started a share buy-back program worth up to 3 billion euros ($3.65 billion), to be completed by the end of the year.
- International Consolidated Airlines Grp (LON:IAG), the parent company of British Airways and Spanish carrier Iberia Airlines, reported lackluster second quarter earnings, and said it is making contingency plans in the event of Spain’s exit from the eurozone.
- French insurer AXA (EPA:CS) reported first half net profit of 2.59 billion euros ($3.14 billion) that topped analysts’ estimates of 2.31 billion euros. Total revenue increased 3 percent to 48.41 billion euros from 46.84 billion euros a year earlier.
- Intesa Sanpaolo SpA (BIT:ISP), Italy’s second- biggest bank, reported second quarter profit of 470 million euros ($575 million) that beat the average analysts’ estimate of 323 million euros. Net interest income for the quarter increased 2.7 percent to 2.43 billion euros from 2.37 billion euros in the same period last year.
- Finnish mobile handset maker Nokia Corporation (ADR) (NYSE:NOK) (HEL:NOK1V) (AMS:NOKA) was downgraded by analysts at Goldman Sachs to “sell” from “neutral.”
Asia-Pacific
- Toyota Motor Corporation (ADR) (NYSE:TM) (TYO:7203) reported first-quarter net profit of 290.35 billion yen ($3.71 billion) that beat analysts’ estimates of 250.65 billion yen, as production and sales rebounded in North America and Japan, from last year’s natural disasters. The world’s top-selling carmaker also raised its calendar year global sales forecast.
- BHP Billiton Limited (ADR) (NYSE:BHP) (ASX:BHP) (LON:BLT), the world’s biggest miner, will take a $2.84 billion writedown on its recently acquired Fayetteville shale gas assets in Arkansas and a further $450 million writedown on its Australian nickel business.
- Nomura Holdings, Inc. (ADR) (NYSE:NMR) (TYO:8604) was ordered by Japanese financial regulators to bolster internal controls after a string of embarrassing insider trading cases at its brokerage unit.
- Sharp Corporation (TYO:6753) plunged to their lowest level in almost 40 years in Tokyo trading after the Japanese consumer electronics major slashed its full-year forecasts amid weak demand for televisions and a strengthening yen. Analysts at Credit Suisse Group AG and JPMorgan Chase & Co. have downgraded the stock, and Moody’s and Standard & Poor’s have also cut their credit ratings for the Osaka-based company.
- Dutch brewer, Heineken N.V. (AMS:HEIA) has agreed to take control of Singapore-based Asia Pacific Breweries Ltd. (SGX:A46), in a deal worth more than $4 billion, Reuters reported.
- Japan Airlines Co. is planning to raise 663 billion yen ($8.5 billion) in the second-biggest initial public offering this year, after Facebook Inc (NASDAQ:FB). The airline will relist on the Tokyo Stock Exchange on September 19
- Chinese carmaker, SAIC Motor Corporation Limited (SHA:600104), Great Wall Motor Co Ltd (SHA:601633) and Faw Car Co., Ltd. (SHE:000800) ended significantly lower in trade today after the China Automobile Dealers Association said the country’s vehicle inventories rose to the highest level in four months in June.
- Japanese office-equipment maker Brother Industries, Ltd. (TYO:6448) ended 7.4 percent higher in Tokyo trading after first-quarter profit jumped 57 percent to 10.3 billion yen.
Economic Calendar for Friday, August 03, 2012:
08:30 A.M. ET: Non-farm Payrolls (July)
08:30 A.M. ET: Unemployment Rate (July)
08:30 A.M. ET: Average Hourly Earnings (MoM) (July)
08:30 A.M. ET: Average Hourly Earnings (YoY) (July)
08:30 A.M. ET: Average Weekly Hours (July)
10:00 A.M. ET: ISM Non-Manufacturing PMI (July)
