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; STAN, SBUX, ING, M, MCD, LMCA, RL, MS, RIO
Morning Market Update
Market Levels
- US: Dow Futures: 13105.00 (-0.11%), S&P 500 Futures: 1391.20 (-0.42%), NASDAQ Futures: 2705.00 (-0.18%)
- Europe: CAC: 3425.90 (-0.80%), DAX: 6913.87 (-0.78%), FTSE: 5813.70 (-0.47%)
- Asia-Pacific: Australia: 4312.60 (0.49%), China: 2160.99 (0.16%), Hong Kong: 20065.52 (-0.04%), India: 5338.00 (0.02%), Japan: 8881.16 (0.88%).
- Metals: Gold: 1608.80 (-0.25%), Silver: 27.77 (-1.13%), Copper: 3.42 (-0.71%)
- Energy: Crude Oil: 93.31 (-0.38%), Natural Gas: 2.93 (-1.25%)
- Commodities: Corn: 7.99 (-0.62%), Soya Bean: 15.68 (-1.17%), Wheat: 8.94 (-0.47%)
- Currency: EUR/USD: 1.2338 (-0.49%), GBP/USD: 1.5645 (0.15%), USD/JPY: 78.4100 (-0.24%)
- 10 year US Treasury: 1.615% (-0.014)
Financial and Economic News Update
U.S. stock-index futures trading in the red: U.S. stock index futures are pointing to a lower open on Wednesday following a three-day rally that took the S&P 500 (INDEXSP:.INX) above the 1,400-mark. On the economic front, U.S. workers increased their productivity in the second quarter, Labor Department said today. The Dow Jones industrial average, S&P 500 and NASDAQ futures were all trading in the red.
European markets trading lower: European markets are trading lower on Wednesday with the German DAX (INDEXDB:DAX) down 0.8 percent at 6913.87, the FTSE 100 (INDEXFTSE:UKX) declined 0.5 percent to 5813.70, and the CAC 40 (INDEXEURO:PX1) slid 0.8 percent to 3425.90. The euro zone blue-chip ESTX 50 PR.EUR (INDEXSTOXX:SX5E) (Euro Stoxx 50) was fell 0.9 percent.
Asian markets end mixed: Asian markets closed mixed on Wednesday with Japan’s NIKKEI 225 (INDEXNIKKEI:NI225) closing 0.9 percent higher at 8,881.16. The HANG SENG INDEX (INDEXHANGSENG:HSI) closed down 0.04 percent at 20,065.5, while the SSE Composite Index (SHA:000001) closed up 0.2 percent at 2,161 points. The S&P/ASX 200 (INDEXASX:XJO) index gained 21 points to 4,312.6. The benchmark Indian 30-share BSE SENSITIVE (INDEXBOM:SENSEX) index ended flat at 17,602.12 points.
Stocks in Focus
U.S.
- Macy’s, Inc. (NYSE:M) reported a 16 percent increase in second quarter net income to $279 million, or 67 cents a share, from $241 million, or 55 cents per share, in the year-ago period. The retailer also raised its full-year profit outlook.
- McDonald’s Corporation (NYSE:MCD) reported flat same store sales in July, as Americans cut back on spending amid weak economic conditions. Analysts were expecting an increase of 2.3 percent.
- Ralph Lauren Corp (NYSE:RL) said fiscal first quarter net income rose 5 percent to $193.4 million, or $2.03 per share, from $184.1 million, or $1.90 per share, a year ago. Revenue increased 4 percent to $1.59 billion from $1.53 billion in the year-ago quarter. Analysts were expecting a net income of $1.78 per share, on $1.58 billion in revenue.
- Dish Network Corp. (NASDAQ:DISH), the second- largest U.S. satellite-television provider, reported second- quarter profit of $225.7 million, or 50 cents per share that missed analysts’ estimates of 66 cents per share. Sales fell 0.5 percent to $3.57 billion, also trailing estimates of $3.63 billion.
- Computer Sciences Corporation (NYSE:CSC) said first quarter net income plunged to $40 million or $0.26 per share, from $183 million or $1.17 per share in the year-ago quarter. Revenue decline 2 percent to $3.96 billion from $4.03 billion a year earlier.
- Coal producer Alpha Natural Resources, Inc. (NYSE:ANR) reported second quarter adjusted loss of $72 million, or 33 cents per share, on revenue of $1.8 billion. Analysts were expecting a loss of 27 cents per share, on $1.93 in revenue.
- International Flavors & Fragrances Inc. (NYSE:IFF) posted second quarter earnings excluding items of $1.08 a share, on revenue of $721.3 million. Analysts were looking for earnings of $1.02 per share on revenues of $729.41 million.
- Morgan Stanley (NYSE:MS) is planning to shut down offices and cut staff, according to a Reuters report.
- Liberty Media Corp (Capital) (NASDAQ:LMCA) unveiled plans to spin off its Starz unit into a separate publicly traded entity, a move it says will help unlock growth opportunities at the company.
- Sodastream International Ltd (NASDAQ:SODA) reported second quarter earnings excluding items of 52 cents per share, 6 cents above the average analysts’ estimate, while revenue for the quarter came in at $103 million, also beating expectations of $90.6 million. The company also raised its full-year profit and revenue outlook.
- Semiconductor maker MEMC Electronic Materials, Inc. (NYSE:WFR) reported second quarter earnings excluding certain items of 14 cents per share, beating estimates of earnings of 1 cent a share. Revenue increased 8.4 percent to $808.4 million, also topping estimates of $643 million.
- Coffee shop chain Starbucks Corporation (NASDAQ:SBUX) is planning to offer a new mobile phone payment option, in a partnership with mobile payments startup Square Inc. As part of the deal, Starbucks will also invest $25 million in the San Francisco-based company, founded by Twitter co-founder Jack Dorsey.
Europe
- Standard Chartered PLC (LON:STAN) (HKG:2888) rebounded from sharp losses yesterday, and is trading 8.1 percent higher in London, as it denied allegations of colluding with the Iranian government to hide transactions worth at least $250 billion.
- Dutch financial services company ING Groep N.V. (ADR) (NYSE:ING) (AMS:INGA) said second quarter net profit slumped 22 to 1.17 billion euros ($1.45 billion) that missed estimates for net profit of 1.23 billion euros. Banking profits declined 13 percent to 860 million euros from 994 million euros amid investment losses in Spain and lower interest margins. Insurance earnings were reduced to half from 548 million euros to 288 million euros.
- Iberia SA, the Spanish unit of International Consolidated Airlines Grp (LON:IAG) has hedged its 6.7 percent stake in travel and tourism technology company Amadeus IT Holding SA (MCE:AMS) for $591 million.
- German carrier Deutsche Lufthansa AG (ETR:LHA) (FRA:LHA) was trading 4.2 percent lower as members of the trade union UFO, which represents the flight attendants, voted for a strike. Talks between the union and Lufthansa are set to resume on August 16.
- Kloeckner & Co SE (ETR:KCO) (FRA:KCO), Europe’s largest independent steel trader, reported second quarter operating profit of 50 million euros ($62.10 million) from 62 million last year. The German steel distributor also cut its full year outlook, and said it was planning to cut more jobs amid the deteriorating conditions in Europe.
- Securitas AB (STO:SECU-B), the world’s second-biggest security group posted second- quarter net income of 337 million kronor ($50 million) that trailed the average analysts’ estimate of 422 million kronor.
- InterContinental Hotels Group PLC (ADR) (NYSE:IHG) (LON:IHG) fell 1.4 percent in London after analysts at J.P. Morgan lowered the world’s largest hotel operator to “neutral” from “overweight.”
- British diversified engineering company Smiths Group plc (LON:SMIN) was downgraded to “underperform” from “neutral” by analysts at Bank of America Corp. The stock was down 3.1 percent.
- Serco Group plc (LON:SRP), the U.K.-based government services company was cut to “neutral” from “buy” by analysts at UBS AG.
Asia-Pacific
- Diversified mining giant Rio Tinto plc (NYSE:RIO) (LON:RIO) (ASX:RIO) reported a 22 percent drop in first half net profit to $5.89 billion from $7.59 billion a year earlier. Revenue declined to $25.34 billion from $29.06 billion in the same period last year. Underlying earnings fell 34 percent to $5.15 billion, but managed to beat market expectations for $4.94 billion. The Anglo-Australian company also maintained its $16 billion spending program for the year.
- Hong Kong’s Cathay Pacific Airways Limited (HKG:0293), the biggest international air-cargo carrier, posted a first-half net loss of 935 million Hong Kong dollars ($121 million), its biggest loss since 2003, as global economic uncertainty weighed on passenger and cargo traffic. Total revenue increased 4.4 percent to 48.86 billion Hong Kong dollars, while cargo revenue fell 7.6 percent to 11.9 billion Hong Kong dollars.
- Hong Kong Exchanges and Clearing Limited (HKG:0388), the world’s second biggest exchange operator by market value, said second quarter net profit fell 21 percent to 1.07 billion Hong Kong dollars ($138 million) that missed analysts’ estimates of 1.09 billion Hong Kong dollars. The average daily turnover declined 23 percent to about 56.7 billion Hong Kong dollars a day, from 73.6 billion Hong Kong in the same period last year
- Indian telecom major Bharti Airtel Limited (NSE:BHARTIARTL) (BSE:532454) reported a 37 percent fall in first quarter net profit to 7.62 billion rupees ($138 million) from 12.15 billion rupees a year earlier, as rising costs and stiff competition squeezed margins. The stock lost more than 7 percent to their close at its lowest level in two year.
- Japanese camera maker Nikon Corporation (TYO:7731) jumped 2.6 percent in Tokyo trading amid reports that the firm is heading for a tie-up with Intel Corporation (NASDAQ:INTC).
- Australian shareholder services group Computershare Limited (ASX:CPU) reported full-year core earnings of $272.8 million that beat analysts’ estimates of $262.7 million. The group also forecast a growth of up to 15 percent in earnings per share, excluding one-offs, in the current financial year.
- Australian airlines Qantas Airways Limited (ASX:QAN) has denied any interest in acquiring an equity stake in Japan Airlines, Reuters reported.
- Telstra Corporation Limited (ASX:TLS), Australia’s biggest telecommunications company was downgraded to “neutral” from “buy” by analysts at UBS AG, citing the company’s recent share price strength.
Economic Calendar for Wednesday, August 08, 2012:
07:00 A.M. ET: MBA Purchase Applications (Week ending Friday, August 03, 2012)
08:30 A.M. ET: Non-farm Productivity (Q2)
08:30 A.M. ET: Unit Labor Costs (Q2)
10:30 A.M. ET: EIA Petroleum Status Report (Week ending Friday, August 03, 2012)
01:00 P.M. ET: 10-Yr Note Auction
