Market Levels
* US: Dow Futures: 13305.00 (0.45%), S&P 500 Futures: 1427.80 (0.44%), NASDAQ Futures: 2729.00 (0.70%)
* Europe: CAC: 3427.36 (1.12%), DAX: 7279.85 (0.65%), FTSE: 5817.13 (0.41%).
* Asia-Pacific: Australia: 4483.40 (-0.07%), China: 2098.70 (-0.30%), Hong Kong: 21148.25 (0.06%), India: 5687.25 (0.20%), Japan: 8577.93 (0.51%).
* Metals: Gold: 1744.80 (-0.85%), Silver: 33.20 (-1.39%), Copper: 3.70 (-0.11%)
* Energy: Crude Oil: 91.84 (-0.02%), Natural Gas: 3.56 (-1.44%)
* Commodities: Corn: 7.42 (-2.78%), Soya Bean: 14.96 (-1.74%), Wheat: 8.50 (-3.19%)
* Currency: EUR/USD: 1.2953 (0.02%), GBP/USD: 1.6058 (-0.10%), USD/JPY: 78.7300 (0.38%)
* 10 year US Treasury: 1.668% (0.012)
Financial and Economic News Update
U.S. stock-index futures trading higher: U.S. stock-index futures are pointing to a higher open on Monday after data showed U.S. retail sales rose in September. The Commerce Department said retail sales increased 1.1 percent last month. Analysts were expecting a gain of 0.3 percent. In other economic news, a gauge of manufacturing in New York State rose to minus 6.16 in October, the New York Federal Reserve said on Monday. Economists were expecting a reading of minus 4.55. The Dow Jones industrial average, the S&P 500 and the NASDAQ are all trading close to half a percent higher.
European markets rise: European markets are trading higher on Monday with the German DAX (INDEXDB:DAX) up 0.7 percent at 7279.85, the FTSE 100 (INDEXFTSE:UKX) gaining 0.4 percent to 5817.13 and the CAC 40 (INDEXEURO:PX1) jumped 1.1 percent to 3427.36. The euro zone blue-chip ESTX 50 PR.EUR (INDEXSTOXX:SX5E) (Euro Stoxx 50) was trading 0.9 percent higher.
Asian markets end mixed: Asian markets closed mixed on Monday with the HANG SENG INDEX (INDEXHANGSENG:HIS) ending up 0.1 percent at 21,148.3, while the SSE Composite Index (SHA:000001) (Shanghai Composite Index) lost 0.3 percent. Japan’s NIKKEI 225 (INDEXNIKKEI:NI225) gained 0.5 percent to 8,577.93 points. The S&P/ASX 200 (INDEXASX:XJO) index eased 3.2 points to 4,483.4. The benchmark Indian 30-share BSE SENSITIVE (INDEXBOM:SENSEX) index ended up 0.1 percent.
Company News Update
U.S.
* Citigroup Inc. (NYSE:C) reported third-quarter earnings excluding items of $1.06 per share, on revenue of $19.4 billion that beat the average analysts’ estimate of earnings excluding items of 96 cents a share on $18.71 billion in revenue.
* Microsoft Corporation (NASDAQ:MSFT) has announced the launch of an on-demand streaming music service called Xbox music.
* Charles Schwab Corp (NYSE:SCHW) said third-quarter profit increased 12 percent to $247 million, or 19 cents a share, from $220 million, or 18 cents a share, in the same period last year. Revenue for the quarter gained 1 percent to $1.2 billion from $1.18 billion a year earlier. Analysts were expecting a profit of 17 cents a share on revenue of about $1.2 billion.
* Media company Gannett Co., Inc. (NYSE:GCI) posted third quarter adjusted earnings of 56 cents a share, on revenue of $1.31 billion. Analysts had forecast earnings 53 cents a share on revenue of $1.29 billion.
* AllThingsD reported that chipmaker Advanced Micro Devices, Inc. (NYSE:AMD) will announce workforce reductions of up to 30 percent this week, including employees from engineering and sales.
* Asset manager BlackRock, Inc. (NYSE:BLK)’s shares are undervalued, according to an article in Barron’s.
* Internet retailer Amazon.com, Inc. (NASDAQ:AMZN) is in advanced talks to buy the mobile chip business of Texas Instruments Incorporated (NASDAQ:TXN), according to a Reuters report.
* eBay Inc (NASDAQ:EBAY)’s PayPal unit is planning to slash as much as 3 percent of its workforce, according to a Reuters report.
* Coal miner Consol Energy Inc. (NYSE:CNX) said it expects to report a third-quarter loss due to planned and unplanned mine idlings. Analysts had been expecting Consol to earn 35 cents per share for the quarter.
* Watson Pharmaceuticals, Inc. (NYSE:WPI) has received approval from the U.S. Food and Drug Administration to sell a generic version of Sanofi SA (ADR)
(NYSE:SNY) (EPA:SAN)’s Avapro, which is used to treat high blood pressure and kidney problems caused by diabetes.
* Integrated energy company Entergy Corporation (NYSE:ETR) expects third-quarter adjusted earnings to miss Street estimates due to higher taxes and non-fuel operation and maintenance expenses.
* The two largest U.S. pension funds, the California Public Employees’ Retirement System and the California State Teachers’ Retirement System, have voted to oust Rupert Murdoch as chairman of News Corp (NASDAQ:NWSA), the Sunday Telegraph reported.
* Insurance company The Progressive Corporation (NYSE:PGR) has been downgraded to “sell” from “neutral” by analysts at Citigroup.
* Surgical products maker Intuitive Surgical, Inc. (NASDAQ:ISRG) jumped 2 percent in early morning trade after JPMorgan Chase upgraded the shares to “overweight” from “neutral.”
* Lowe’s Companies, Inc. (NYSE:LOW) is up 1.6 percent in pre-market trading after Bank of America raised the stock to “buy” from “neutral.”
Europe
* Royal Bank of Scotland Group plc (ADR) (NYSE:RBS) (LON:RBS) slumped 1.9 percent after it confirmed that a deal to sell more than 300 branches to the U.K. unit of Spain’s Banco Santander, S.A. (ADR) (NYSE:SAN) (MCE:SAN) had collapsed.
* Netflix, Inc. (NASDAQ:NFLX) has launched its online video streaming service in Sweden, making its debut in the Scandinavian region.
* Swiss bank UBS AG (USA) (NYSE:UBS) is reportedly planning to slash about 2,000 jobs in its information technology department as part of a new cost-cutting program.
* German cosmetics retailer Douglas Holding AG (ETR:DOU) (FRA:DOU) said U.S. buyout firm Advent International Corp. has made a voluntary takeover offer for its shares, and has offered 38 euros a share in cash. The stock was up 7.8 percent at 37.51 euros in Frankfurt.
* Total S.A. (ADR) (NYSE:TOT) (EPA:FP) added 1.8 percent after the French oil company said European refining margin jumped 34 percent in the third quarter to $51 per tonne.
* Tractor and combine maker CNH Global NV (ADR) (NYSE:CNH) has rejected the terms of a buyout offer from parent Fiat Industrial SpA (BIT:FI).
* London-listed Mexican precious-metals miner Fresnillo Plc (LON:FRES) posted a 2.6 percent rise in third quarter silver production and said it was on track to meet its full-year gold and silver production targets.
* Europe’s biggest media and telecommunications company, Vivendi SA (EPA:VIV) gained 3 percent on a report that the company is in talks to merge its mobile-phone unit SFR with cable operator Numericable.
* Norwegian aluminum producer Norsk Hydro (STO:NHYO) and consumer goods company Orkla (STO:ORKO) both rallied more than 2 percent after agreeing to combine units amid toughening business conditions in Europe.
* Rio Tinto plc (ADR) (NYSE:RIO) (LON:RIO) (ASX:RIO) slid 1.2 percent in London trading after analysts at Goldman Sachs lowered the stock to “neutral” from “buy.” BHP Billiton Limited (ADR) (NYSE:BHP) (ASX:BHP) (LON:BLT) was down in early morning trade as Goldman Sachs removed the miner from its conviction buy list.
* Telecom major BT Group plc (ADR) (NYSE:BT) (LON:BT.A) cut to “equal weight” from “overweight” at Barclays Plc.
Asia-Pacific
* Japanese mobile operator Softbank Corp (TYO:9984) has reached a deal to buy up to 70 percent in U.S. carrier Sprint Nextel Corporation (NYSE:S) for $20.1 billion, in the biggest overseas acquisition by a Japanese firm.
* Chinese telecom equipment maker ZTE Corporation (SHE:000063) tumbled 10 percent after forecasting a third-quarter net loss of as much as 2 billion yuan ($319 million), compared with profit of 299.3 million yuan in the year-ago period.
* Japanese retail giant Seven & i Holdings Co., Ltd. (TYO:3382) has agreed to acquire the U.S. gasoline stand business and 67 convenience stores in Ohio and Pennsylvania from EZ Energy USA Inc for an undisclosed amount.
* China Petroleum & Chemical Corp. (ADR) (NYSE:SNP) (HKG:0386) (SHA:600028) and ENN Energy Holdings Ltd (HKG:2688) have dropped their $2.2 billion offer for piped-gas distributor, China Gas Holdings Ltd. (HKG:0384) amid regulatory hurdles, according to a Reuters report.
* Japanese construction machinery maker Komatsu Ltd (TYO:6301) gained 4.3 percent after the Nikkei business daily said its first half operating profit would likely meet company guidance of around 111 billion yen ($1.4 billion).
* Angang Steel Company Limited (HKG:0347) (SHE:000898) fell 2.3 percent in Hong King after warning late on Friday that it could make a loss of $505 million for the first nine months this year.
* Ten Network Holdings Limited (ASX:TEN) slid 5.4 percent in Sydney after saying that negotiations for the sale of its outdoor advertising unit are continuing. Reports had surfaced that private equity group CHAMP had raised concerns about the financial performance of the business.
* Chinese footwear retailer Belle International Holdings Limited (HKG:1880) fell 4.1 percent after reporting that same-store sales growth for its women’s footwear business slowed in the third quarter.
* Australian iron ore miner Sundance Resources Limited (ASX:SDL) chairman George Jones said he is hopeful that a sale of the company to China’s Hanlong Group will be concluded soon, according to a Reuters report.
* China’s Yunnan Aluminium Co., Ltd. (SHE:000807) closed 2.1 percent lower in Shenzhen after saying that third-quarter loss may be between 4 million yuan and 5.5 million yuan.
* Hong Kong-based jewelry chain Chow Tai Fook Jewellery Group Ltd (HKG:1929) lost 2.2 percent after analysts at CLSA Asia-Pacific Markets on Monday downgraded the stock to “sell” from “underperform.”
Economic Calendar for Monday, October 15, 2012:
08:30 A.M. ET: Retail Sales (MoM) (September)
08:30 A.M. ET: Retail Sales ex Autos (MoM) (September)
08:30 A.M. ET: NY Empire State Manufacturing Index (October)
08:45 A.M. ET: New York Federal Reserve Bank President William Dudley speaks.
10:00 A.M. ET: Business Inventories (August)
11:30 A.M. ET: 3-Month Bill Auction
11:30 A.M. ET: 6-Month Bill Auction
12:45 P.M. ET: Richmond Federal Reserve Bank President Jeffrey Lacker speaks.
01:10 P.M. ET: St. Louis Federal Reserve Bank James Bullard speaks.
