Every morning we put out a report with the latest news in global stock markets, company news, and global economic news. There is a lot of important news for October 16th 2012.

update

Market Levels

  • US:  Dow Futures: 13417.00 (0.43%), S&P 500 Futures: 1442.10 (0.46%), NASDAQ Futures: 2743.50 (0.45%)
  • Europe: CAC: 3467.53 (1.36%), DAX: 7358.81 (1.33%), FTSE: 5860.75 (0.94%).
  • Asia-Pacific: Australia: 4491.50 (0.18%), China: 2098.81 (0.01%), Hong Kong: 21207.07 (0.28%), India: 5648.00 (-0.69%), Japan: 8701.31 (1.42%).
  • Metals: Gold: 1743.70 (0.35%), Silver: 32.90 (0.46%), Copper: 3.71 (0.35%)
  • Energy: Crude Oil: 91.98 (0.14%), Natural Gas: 3.45 (-1.12%)
  • Commodities: Corn: 7.43 (-2.06%), Soya Bean: 15.01 (-1.06%), Wheat: 8.56 (-1.05%)
  • Currency: EUR/USD: 1.3050 (0.78%), GBP/USD: 1.6119 (0.30%), USD/JPY: 78.9000 (0.38%)
  • 10 year US Treasury: 1.703% (0.040)

Financial and Economic News Update

 

U.S. stock-index futures trading higher: U.S. stock-index futures are pointing to a higher open on Tuesday, buoyed by a batch of better than expected quarterly number.  On the economic front, the Consumer Price Index rose 0.6 percent in September, according to the Labor Department, matching analysts’ expectations. International Business Machines Corp. (NYSE:IBM), Intel Corporation (NASDAQ:INTC) and CSX Corporation (NYSE:CSX) are slated to report earnings after the closing bell. 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 Tuesday with the German DAX (INDEXDB:DAX) up 1.3 percent at 7358.81, the FTSE 100 (INDEXFTSE:UKX) gained 0.9 percent to 5860.75 and the CAC 40 (INDEXEURO:PX1) jumped 1.4 percent to 3467.53. The euro zone blue-chip ESTX 50 PR.EUR (INDEXSTOXX:SX5E) (Euro Stoxx 50) was trading 1.9 percent higher.

Asian markets end mostly higher: Asian markets closed higher on Tuesday with the HANG SENG INDEX (INDEXHANGSENG:HIS) ending up 0.3 percent at 21,207.1, while the SSE Composite Index (SHA:000001) (Shanghai Composite Index) closed up 0.01 percent. Japan’s NIKKEI 225 (INDEXNIKKEI:NI225) added 123.38 points to 8,701.31 points. The S&P/ASX 200 (INDEXASX:XJO) index ended up 8.1 points at 4,491.5. The benchmark Indian 30-share BSE SENSITIVE (INDEXBOM:SENSEX) index lost 0.7 percent.

Company News Update

U.S.

  • Goldman Sachs Group, Inc. (NYSE:GS) reported third quarter earnings excluding items of $2.85 a share, on revenue of $8.35 billion that easily beat the average analysts’ estimate of earnings excluding items of $2.12 a share on $7.30 billion in revenue. The vestment bank also raised its quarterly dividend 8.7 percent, to 50 cents a share from 46 cents a share.
  • Johnson & Johnson (NYSE:JNJ) posted third-quarter earnings excluding items of $1.25 a share, 4 cents above the average analysts’ estimate. Revenue for the period increased to $17.10 billion from $16.01 billion a year ago, also topping estimates of $16.98 billion.
  • Advertising company Omnicom Group Inc. (NYSE:OMC) reported third quarter profit of $203.9 million, or 74 cents a share, up from $203.7 million, or 72 cents, in the same period last. Revenue for the quarter stood at $3.41 billion. Analysts had forecast earnings of 72 cents on revenue of $3.42 billion.
  • Wolverine World Wide, Inc. (NYSE:WWW) reported third quarter earnings excluding one-time items of 72 cents a share, on revenue of $353.1 million that trailed Street estimates of earnings excluding items of 73 cents a share on $362 million in revenue.
  • Yahoo! Inc. (NASDAQ:YHOO) has named former Google Inc (NASDAQ:GOOG) executive Henrique de Castro as its new chief operating chief.
  • Online retailer Amazon.com, Inc. (NASDAQ:AMZN) said it is hiring more than 50,000 seasonal workers in the U.S. this holiday season.
  • United Technologies Corporation (NYSE:UTX) has agreed to sell its Electric Power Systems unit to French aerospace components maker Safran SA (EPA:SAF) for 310 million euros ($401 million) in cash.
  • Murphy Oil Corporation (NYSE:MUR) will spin-off its U.S. refining and marketing unit into a separate publicly-traded company. Shares were up 9 percent in pre-market trading.
  • Bank of America Corp (NYSE:BAC) has named veteran banker Margaret Ren as chairman of its China business.
  • Diversified manufacturer Illinois Tool Works Inc. (NYSE:ITW) has appointed Vice Chairman Scott Santi as acting chief executive after Chairman and Chief Executive David Speer went on a medical leave.
  • Sprint Nextel Corporation (NYSE:S) has been upgraded to “neutral” from “underperform” at by analysts at Robert W Baird.
  • Supermarket operator The Kroger Co. (NYSE:KR) was raised to “buy” from “hold” by analysts at Jefferies Group Inc.
  • Citigroup has raised fashion accessories maker Fossil, Inc. (NASDAQ:FOSL) to “buy” from “neutral.”
  • United Parcel Service, Inc. (NYSE:UPS) was lowered to “neutral” from “outperform” by analysts at Robert W Baird.
  • Citigroup Inc. (NYSE:C) fell more than 2 percent in early morning trade after Chief Executive Officer Vikram Pandit resigned. He will be replaced by Michael Corbat, who previously served as Citigroup’s CEO of Europe, Middle East and Africa.
  • The Coca-Cola Company (NYSE:KO) reported third-quarter earnings excluding items of 51 cents per share, on revenue of $12.34 billion. Analysts had forecast earnings excluding items of 51 cents a share on $12.41 billion in revenue.
  • UnitedHealth Group Inc. (NYSE:UNH) said third-quarter earnings jumped 23 percent to $1.56 billion, or $1.50 per share, from $1.27 billion, or $1.17 per share, in the year-ago period. Revenue for the quarter increased 8 percent to $27.3 billion. Analysts had expected the company to report earnings of $1.31 a share on $27.61 billion in revenue. The country’s largest health insurer also raised its full-year earnings forecast.
  • PNC Financial Services (NYSE:PNC) said third-quarter profit increased 11 percent to $925 million, or $1.64 per share, from $834 million, or $1.55, a year earlier. Earnings excluding certain items came in at $1.63 a share. Analysts were looking for earnings excluding items of $1.66 a share.
  • Toy company Mattel, Inc. (NASDAQ:MAT) said third quarter net income rose to $365.9 million, or $1.04 per share, from $300.8 million, or 86 cents per share, in the year-ago period. Sales increased 4 percent to about $2.08 billion. Analysts had expected earnings of 99 cents per share on $2.07 billion in sales.
  • State Street Corporation (NYSE:STT) said third quarter net income on an operating basis declined to $473 million, or 99 cents a share, from $476 million, or 96 cents, in the year-ago period. Analysts were expecting earnings excluding items of 96 cents a share.
  • Domino’s Pizza, Inc. (NYSE:DPZ) reported third quarter profit of $26 million, or 44 cents a share, up from a year-ago profit of $22.1 million, or 36 cents a share. Revenue came in at $378.1 million. Analysts were looking for a profit of 41 cents a share on revenue of $375 million.

 

Europe

 

  • Ratings agency Standard & Poor’s downgraded the credit ratings of 15 Spanish banks on Tuesday, including the country’s largest bank Banco Santander, S.A. (NYSE:SAN) (MCE:SAN) and second largest lender Banco Bilbao Vizcaya Argentaria SA  (NYSE:BBVA) (MCE:BBVA).
  • Royal Bank of Scotland Group plc  (NYSE:RBS) (LON:RBS) has suspended its head of rates trading in Europe and Asia Pacific, Jezri Mohideen, as the British lender investigates its alleged role in the Libor interest rate fixing scandal, the Financial Times reported on Tuesday.
  • French billionaire Vincent Bollore is all set to gain a seat on the board of Vivendi SA (EPA:VIV) after his holding group raised its stake in the media conglomerate to 5 percent, from 4.41 percent at end-September.
  • Spanish telecommunications group Telefonica S.A.  (NYSE:TEF) (MCE:TEF) gained 1 percent after pricing the shares of its German unit in the range of 5.25 euros ($6.80) and 6.50 euros each.
  • Danish drug maker Novo Nordisk A/S  (NYSE:NVO) (CPH:NOVO-B) said it has submitted applications to the European
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