Market Levels
* US: Dow Futures: 13529.00 (0.21%), S&P 500 Futures: 1453.30 (0.24%), NASDAQ Futures: 2777.25 (-0.01%)
* Europe: CAC: 3422.33 (0.46%), DAX: 7294.49 (0.05%), FTSE: 5834.50 (-0.15%).
* Asia-Pacific: Australia: 4505.30 (0.52%) China: 2115.23 (1.93%), Hong Kong: 20937.38 (0.54%), India: 5704.60 (0.50%), Japan: 8769.59 (-1.07%).
* Metals: Gold: 1778.10 (0.14%), Silver: 34.09 (0.21%), Copper: 3.74 (0.50%)
* Energy: Crude Oil: 90.30 (1.09%), Natural Gas: 3.38 (-0.56%)
* Commodities: Corn: 7.46 (-0.87%), Soya Bean: 15.70 (-0.18%), Wheat: 8.70 (0.35%)
* Currency: EUR/USD: 1.2944 (-0.19%), GBP/USD: 1.6028 (0.02%), USD/JPY: 78.2800 (-0.06%)
* 10 year US Treasury: 1.760% (0.029)
Financial and Economic News Update
U.S. stock-index futures trading mixed: U.S. stock-index futures are pointing to a mixed open on Tuesday as investors look ahead to the third-quarter earnings season. Dow component Alcoa Inc. (NYSE:AA) will report numbers after the closing bell. Yum! Brands, Inc. (NYSE:YUM) is also scheduled to post earnings. The Dow Jones industrial average, the S&P 500 and the NASDAQ are struggling to find direction.
European markets mixed: European markets are trading mixed on Tuesday as German chancellor Angela Merkel visits Greece for the first time since 2009. The German DAX (INDEXDB:DAX) was up 0.1 percent at 7294.49, the FTSE 100 (INDEXFTSE:UKX) lost 0.2 percent to 5834.50 and the CAC 40 (INDEXEURO:PX1) added 0.5 percent to 3422.33. The euro zone blue-chip ESTX 50 PR.EUR (INDEXSTOXX:SX5E) (Euro Stoxx 50) was up 3 percent.
Asian markets end mostly higher: Asian markets closed higher on Tuesday with the HANG SENG INDEX (INDEXHANGSENG:HIS) rising 0.5 percent, but off its highs for the day. The SSE Composite Index (SHA:000001) (Shanghai Composite Index) rose 2 percent. Japan’s NIKKEI 225 (INDEXNIKKEI:NI225) lost 1.1 percent to 8,769.59. The S&P/ASX 200 (INDEXASX:XJO) index advanced 23.4 points to 4,505.3, its best close since July 27, 2011. The benchmark Indian 30-share BSE SENSITIVE (INDEXBOM:SENSEX) index gained 0.4 percent.
Company News Update
U.S.
* Tool maker Stanley Black & Decker, Inc. (NYSE:SWK) will sell its Hardware & Home Improvement Group to Spectrum Brands Holdings, Inc. (NYSE:SPB) for $1.4 billion in cash.
* Medical device maker Edwards Lifesciences Corp (NYSE:EW) is down close to 15 percent in early morning trade after lowering its fiscal third-quarter outlook amid weak sales of its flagship Sapien heart valves.
* Specialty chemical maker Cytec Industries Inc (NYSE:CYT) will divest its Coatings Resins business to private-equity firm Advent International for about $1 billion.
* Principal Financial Group Inc (NYSE:PFG) has agreed to buy Chilean pension manager AFP Cuprum for about $1.5 billion, in a bid to expand its presence in emerging markets.
* AngioDynamics, Inc. (NASDAQ:ANGO) reported fiscal first-quarter net loss of $721 million, or 2 cents a share, as the cost of sales nearly doubled, despite a double-digit increase in revenues. The company also slashed its full-year earnings forecast.
* Airline company United Continental Holdings Inc (NYSE:UAL) said consolidated traffic in September fell 2.1 percent, while consolidated capacity slid 1.3 percent last month.
* Boston Scientific Corporation (NYSE:BSX) said it has agreed to pay $90 million to acquire smaller device maker Rhythmia Medical.
* Johnson & Johnson (NYSE:JNJ) fell 1 percent in pre market trading after Goldman Sachs downgraded the Dow Jones Industrial Average component’s stock to “sell” from “neutral.”
* Netflix, Inc. (NASDAQ:NFLX) is down close to 4 percent after analysts at Bank of America/Merrill Lynch downgraded the stock to “underperform” from “buy,” a two-notch downgrade.
* Eli Lilly & Co. (NYSE:LLY) jumped 1.2 percent after being raised to “neutral” from “sell” by analysts at Goldman Sachs, following upbeat news on its experimental Alzheimer’s drug.
* Ann Inc (NYSE:ANN) slid 1.5 percent in early morning trade after Morgan Stanley downgraded the retailer’s shares to “equal weight” from “overweight.”
* Bank of America/Merrill Lynch has upgraded electronics retailer, RadioShack Corporation (NYSE:RSH)’s shares to “buy” from “underperform.”
Europe
* British bank Barclays PLC (ADR) (NYSE:BCS) (LON:BARC) agreed to buy the deposits, mortgages and business assets of ING Groep N.V. (ADR) (NYSE:ING) (AMS:INGA)’s online bank, ING Direct U.K., valued at more than 11 billion pounds ($17.63 billion).
* Mining stocks bucked the trend and moved higher in London amid news of further stimulus measures in China. Kazakhmys plc (LON:KAZ) is up 2.8 percent and Vedanta Resources plc (LON:VED) gained 3.6 percent. Eurasian Natural Resources Corporation (LON:ENRC) jumped 2 percent, while Anglo American plc (LON:AAL) picked up 2.4 percent. Antofagasta plc (LON:ANTO) added 1 percent, as Rio Tinto plc (ADR) (NYSE:RIO) (LON:RIO) (ASX:RIO) edged up 2.6 percent. BHP Billiton Limited (ADR) (NYSE:BHP) (ASX:BHP) (LON:BLT) climbed 1 percent.
* British Defence Secretary Philip Hammond said he hoped to meet his French, German and U.S. counterparts to discuss the proposed merger of EADS NV (EPA:EAD) and BAE Systems plc (LON:BA), a day before a deadline for the deal, according to a Reuters report.
* Aggreko plc (LON:AGK) slumped 3 percent in London after HSBC Plc downgraded the world’s largest temporary power generation company to “neutral” from “overweight.”
* British outsourcing firm MITIE Group PLC (LON:MTO) has agreed to acquire home care services provider Enara Group Limited for 111 million pounds ($178 million). Following the news, the stock is down 1.1 percent in London.
* Norwegian sea-food company Marine Harvest (STO:MHGO) slid 3.5 percent after reporting third-quarter operational earnings that trailed estimates.
* Veolia Environnement Ve SA (ADR) (NYSE:VE) (EPA:VIE) fell 1.8 percent in Paris after HSBC Plc lowered the stock to “neutral” from “overweight.”
Asia-Pacific
* Global miner BHP Billiton Limited (ADR) (NYSE:BHP) (ASX:BHP) (LON:BLT) has confirmed it is cutting an undisclosed number of jobs in its iron ore division, as it battles weaker demand and higher costs.
* Taiwanese smart-phone maker HTC Corp (TPE:2498) fell 7 percent after third-quarter net profit fell 79 percent, missing analysts’ forecasts, as its flagship
phones failed to keep pace with Apple Inc. (NASDAQ:AAPL)’s iPhone and Samsung Electronics’ Galaxy range.
* Industrial and Commercial Bank of China (HKG:1398) (SHA:601398) ended 1.5 percent higher in Hong Kong amid reports that Chinese state-owned asset management company, Central Huijin Investment, had acquired 6.3 million shares of the bank in the third quarter.
* Troubled Australian surf-wear retailer Billabong International Limited (ASX:BBG) said on Tuesday it has appointed former fashion executive Ian Pollard as a director and chairman elect of its board.
* Honda Motor Co Ltd (ADR) (NYSE:HMC) (TYO:7267) fell 2.5 percent in Tokyo trading after the auto giant was lowered to “neutral” from “outperform” at Credit Suisse.
* Australia’s Oil Search Limited (ASX:OSH) jumped 3.2 percent after announcing the sale of some of its assets in Papua New Guinea to French oil giant Total S.A. (ADR) (NYSE:TOT) (EPA:FP).
* Japanese electronics maker Sharp Corporation (TYO:6753) slid 15 percent to 151 yen in Tokyo after analysts at Goldman Sachs Group Inc. downgraded its rating on the stock to “sell” from “neutral,” saying the company’s financial situation may deteriorate further.
Economic Calendar for Tuesday, October 09, 2012:
07:30 A.M. ET: NFIB Small Business Optimism Index (September)
07:45 A.M. ET: ICSC-Goldman Store Sales (Week ending Saturday, October 06, 2012)
08:55 A.M. ET: Redbook Index (MoM)
08:55 A.M. ET: Redbook Index (YoY)
10:00 A.M. ET: IBD/TIPP Economic Optimism (MoM) (October)
11:00 A.M. ET: 4-Week Bill Announcement
11:30 A.M. ET: 3-Month Bill Auction
11:30 A.M. ET: 6-Month Bill Auction
01:00 P.M. ET: 3-Yr Note Auction
