news

Every morning we put 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: 12712.00 (-0.53%), S&P 500: 1369.50 (-0.63%), NASDAQ: 2563.00 (-0.70%)
•    Europe: CAC: 3385.33 (-0.78%), DAX: 7102.23 (-0.94%), FTSE: 5730.50 (-0.64%).
•    Asia-Pacific: Australia: 4379.80 (-1.53%), China: 2047.89 (-1.53%), Hong Kong: 21188.65 (-1.14%), India: 5683.70 (0.00%), Japan: 8661.05 (-0.18%).
•    Metals: Gold: 1727.50 (-0.20%), Silver: 32.56 (0.12%), Copper: 3.45 (-0.46%)
•    Energy: Crude Oil: 85.22 (-0.41%), Natural Gas: 3.63 (1.76%)
•    Commodities: Corn: 7.24 (-2.76%), Soya Bean: 14.07 (-3.05%), Wheat: 8.71 (-3.33%)
•    Currency: EUR/USD: 1.2684 (-0.21%), GBP/USD: 1.5880 (0.02%), USD/JPY: 79.4600 (-0.04%)
•    10 year US Treasury: 1.591% (-0.014)

Financial and Economic News Update

U.S. stock-index futures decline: U.S. stock-index futures are pointing to a lower open on Tuesday amid concerns about the U.S. fiscal cliff, and uncertainty in Greece. Cisco Systems, Inc. (NASDAQ:CSCO) will report quarterly numbers after the closing bell.

European markets fall: European markets are down in trade today, with the German DAX (INDEXDB:DAX) sliding 0.9 percent to 7102.23, the FTSE 100 (INDEXFTSE:UKX) down 0.6 percent to 5730.50 and the CAC 40 (INDEXEURO:PX1) shedding 0.8 percent to 3385.33. The euro zone blue-chip ESTX 50 PR.EUR (INDEXSTOXX:SX5E) (Euro Stoxx 50) was trading 0.6 percent lower.

Asian markets end lower: Asian markets closed lower on Tuesday with the HANG SENG INDEX (INDEXHANGSENG:HIS) down 1.1 percent at 21,188.7, its lowest close since October 15, while the SSE Composite Index (SHA:000001) (Shanghai Composite Index) slumped 1.5 percent. Japan’s NIKKEI 225 (INDEXNIKKEI:NI225) dropped 0.2 percent to 8,661 points. The S&P/ASX 200 (INDEXASX:XJO) index lost 68.2 points to 4,379.8 and hit a seven-week low. The benchmark Indian 30-share BSE SENSITIVE (INDEXBOM:SENSEX) index was closed for a public holiday.

Company News Update

U.S.

•    The Home Depot, Inc. (NYSE:HD) reported third quarter earnings excluding items of 74 cents a share, 4 cents above the average analysts; estimate. Revenue came in at $18.1 billion compared to estimates of $17.9 billion. The home improvement retailer also raised its full-year earnings outlook.
•    Michael Kors Holdings Ltd (NYSE:KORS) reported second quarter earnings excluding items of 25 cents a share, on revenue of $532.9 million. The company also raised its full-year earnings and revenue outlook.
•    Xerox Corporation (NYSE:XRX) provided lower than expected fourth quarter earnings outlook, and raised its dividend by 35 percent to 5.75 cents a share.
•    Railroad operator Genesee & Wyoming Inc. (NYSE:GWR) said October traffic fell 4.8 percent from the year-ago period amid double-digit declines in shipments of farm and food products and metals.
•    Dicks Sporting Goods Inc (NYSE:DKS) reported third-quarter profit of 40 cents per share, three cents above the average analysts’ estimate, with same store sales rising 5.1 percent.
•    Microsoft Corporation (NASDAQ:MSFT) fell 4 percent in early morning trade after announcing that Windows President Steven Sinofsky will leave.
•    Saks Inc (NYSE:SKS) reported third quarter earnings in-line with estimates but fell short on revenue. The retailer lowered its current quarter sales outlook.
•    Aecom Technology Corp (NYSE:ACM) reported fourth quarter earnings excluding one-time items of 83 cents a share, on revenue of $2.08 billion. Analysts had projected earnings of 82 cents a share on revenue of $2.22 billion.
•    Del Frisco’s Restaurant Group Inc (NASDAQ:DFRG) has named former Darden Restaurants, Inc. (NYSE:DRI) executive Jeff Carcara as its chief operating officer
•    Private equity firm The Blackstone Group L.P. (NYSE:BX) and offshore oil producer LLOG Exploration Company LLC have agreed to jointly invest $1.2 billion to expand operations in the Gulf of Mexico, according to a Reuters report.
•    Activist investor Carl Icahn has increased his stake in videogame maker Take-Two Interactive Software, Inc. (NASDAQ:TTWO) to 11.69 percent from the prior 10.68 percent, according to a regulatory filing.
•    AK Steel Holding Corporation (NYSE:AKS) cut its shipment outlook for the fourth quarter, and said average selling prices will decline from the previous quarter.
•    Oilfield-services provider Weatherford International Ltd (NYSE:WFT) reported third-quarter revenue of $3.82 billion that trailed the average analysts’ estimate of the $3.9 billion average.
•    Medical products company Hologic, Inc. (NASDAQ:HOLX) reported third quarter earnings excluding one-time items of 37 cents a share, in line with estimates, while revenue edged past Street expectations. The company provided current quarter and full-year profit outlook that was below forecasts.
•    The Dow Chemical Company (NYSE:DOW) gained 1 percent in early morning trade after Goldman Sachs raised the stock to “buy” from “neutral.”
•    F5 Networks, Inc. (NASDAQ:FFIV) was upgraded to “buy” from “neutral” by analysts at Goldman Sachs.

Europe

•    Vodafone Group Plc (ADR) (NASDAQ:VOD) (LON:VOD), the world’s second-largest mobile-phone company fell 4.6 percent in London after the group took a $9.4-billion write-down for its operations in Spain and Italy and cut its outlook for 2012.
•    German utility E.ON AG (ETR:EOAN) (FRA:EOAN) tumbled 11 percent after swinging to a third-quarter loss and lowering its earnings forecast for 2013, amid weakening electricity demand in Europe.
•    Intesa Sanpaolo SpA (BIT:ISP), Italy’s second-biggest bank, jumped 3 percent after third quarter trading income came in at 623 million euros, exceeding the average analyst estimate of 392 million euros.
•    German airline Deutsche Lufthansa AG (ETR:LHA) (FTA:LHA) and its cabin crew union have resolved their labor dispute after nearly six weeks of negotiations. Lufthansa agreed to raise cabin crew pay by 3.95 percent.
•    Paper and packaging company Mondi Plc (LON:MNDI) declined 3.3 percent in London after Barclays Plc sold 19.3 million shares at 634 pence apiece on behalf of a client.
•    Pirelli & C. SpA (BIT:PC), Europe’s third- largest tiremaker, fell 2.9 percent after slashing its full-year revenue forecast by 250 million euros to 6.15 billion euros amid an economic slowdown in the region.
•    German wind-turbine maker Nordex SE (ETR:NDX1) (FRA:NDXI) gained 8 percent after posting a 7 percent rise in third-quarter sales to 715.5 million euros. Earnings before interest and taxes jumped 63 percent to 15.4 million euros.
•    British commercial-television network ITV plc (LON:ITV) surged 7 percent after reporting a 4 percent rise in revenue for the nine months to September 30.

Asia-Pacific
•    Electronic-equipment manufacturer Hitachi Cable, Ltd. (TYO:5812) jumped 19 percent to hit a three-month high after the Nikkei business daily reported it may merge with Hitachi Metals, Ltd. (TYO:5486).
•    Goldman Sachs Group, Inc. (NYSE:GS) is planning to close its asset management unit in South Korea, the firm’s Hong Kong-based spokesman said on Tuesday.
•    Anglo-Australian mining giant BHP Billiton Limited (ADR) (NYSE:BHP) (LON:BLT) (ASX:BHP) expects significant valuation improvements on its shale assets in the U.S., Australian newspapers reported on Tuesday.
•    Sanyo Electric Co, a unit of Panasonic Corporation (ADR) (NYSE:PC) (TYO:6752) is in talks to sell its digital camera business, according to a report in the Nikkei business daily.
•    QBE Insurance Group Limited (ASX:QBE), Australian biggest insurer by market value, plunged 7.5 percent after rating agency S&P lowered its outlook from stable to negative.
•    Olympus Corp (TYO:7733) soared 6 percent after the camera and endoscope maker reported a better than expected second quarter profit, and lifted its annual net profit forecast 14.3 percent to 8 billion yen.
•    Towa Pharmaceutical Co., Ltd. (TYO:4553) slid 8.4 percent to hit a three-month low, amid investor disappointment that the Japanese drug maker did not raise its full-year earnings forecast.
•    DLF Limited (NSE:DLF) (BOM:532868), India’s largest real estate company, reported a 63 percent fall in second quarter net profit, hit by a dip home sales in Asia’s third-largest economy.
•    Incitec Pivot Limited (ASX:IPL) rallied 3.8 percent after the company firm posted a 24 percent drop in annual profit, but said it expected its margins to recover this fiscal year.
•    General contractor Shimizu Corporation (TYO:1803) fell 5.4 percent in Tokyo after cutting its full-year net-income forecast 45 percent to 5.5 billion yen ($69 million), citing higher than expected project costs. The company’s equity rating was lowered to “underperform” from “neutral” by analysts at Credit Suisse Group AG.

Economic Calendar for Tuesday, November 13, 2012:

07:30 A.M. ET:    NFIB Small Business Optimism Index (October)
07:45 A.M. ET:    ICSC-Goldman Store Sales (Week ending Saturday, November 10)
08:55 A.M. ET:    Redbook Index (YoY) (November 4)
08:55 A.M. ET:    Redbook Index (MoM) (November 4)
10:00 A.M. ET:    IBD/TIPP Economic Optimism (MoM) (November)
11:30 A.M. ET:    3-Month Bill Auction
11:30 A.M. ET:    6-Month Bill Auction
02:00 P.M. ET:    Treasury Budget
03:30 P.M. ET:    Federal Reserve Vice Chair Janet Yellen speaks.