Morning Market Update
Stocks that are expected to trade actively in U.S. markets on Tuesday include: Yahoo! Inc. (NASDAQ:YHOO), Valeant Pharmaceuticals Intl Inc (NYSE:VRX) (TSE:VRX), Tiffany & Co. (NYSE:TIF), AstraZeneca plc (ADR) (NYSE:AZN), Omthera Pharmaceuticals Inc (NASDAQ:OMTH) and Royal Caribbean Cruises Ltd. (NYSE:RCL)
• US: Dow Futures: 15425.00 (0.77%), S&P 500 Futures: 1663.90 (0.81%), NASDAQ Futures: 3020.00 (0.93%)
• Europe: CAC: 4051.22 (1.38%), DAX: 8479.43 (1.13%), FTSE: 6769.20 (1.70%)
• Asia-Pacific: Australia: 4970.70 (0.22%), China: 2321.32 (1.22%), Hong Kong: 22924.25 (1.04%), Japan: 14311.98 (1.18%).
• Metals: Gold: 1376.60 (-0.72%), Silver: 22.16 (-1.47%), Copper: 3.31 (0.36%)
• Energy: Crude Oil: 95.09 (1.00%), Natural Gas: 4.22 (-0.52%)
• Commodities: Corn: 5.48 (0.19%), Soya Bean: 14.89 (-1.47%), Wheat: 6.98 (-0.99%)
• Currency: EUR/USD: 1.2933 (0.02%), GBP/USD: 1.5114 (0.10%), USD/JPY: 102.0800 (1.11%)
• 10 year US Treasury: 2.046% (0.040)
Market and Economic News Update
U.S. stock-index futures gain: U.S. stock-index futures are pointing to a higher open on Tuesday following better-than-expected home prices data. Single-family home prices increased 1.1 percent in March, according to the S&P/Case Shiller composite index of 20 metropolitan areas. Economists were expecting a reading of 1 percent. Investors also await the Conference Board’s latest consumer confidence survey that is scheduled for release at 10 am ET. The consumer confidence index is expected to rise to 72.3 in May from 68.1 in April.
European markets rally: European markets are significantly higher in trade amid positive cues from Asia, where a pullback in the yen spurred a rally for exporters. On the economic front, French consumer confidence fell to 79 in May from figures from 83 in April. This was its lowest level since July 2008, and was much below economists’ expectations of 85. The DAX (INDEXDB:DAX) added 1.2 percent to 8479.43. The FTSE 100 (INDEXFTSE:UKX) surged 1.2 percent, while the CAC 40 (INDEXEURO:PX1) gained 1.4 percent to 4051.22 points. The euro zone blue-chip ESTX 50 PR.EUR (INDEXSTOXX:SX5E) (Euro Stoxx 50) soared 1.5 percent.
Asian markets end higher: Asian stocks finished higher, with the NIKKEI 225 (INDEXNIKKEI:NI225) up 1.2 percent, following three days of extreme volatility. The SSE Composite Index (SHA:000001) (Shanghai Composite Index) and the HANG SENG INDEX (INDEXHANGSENG:HSI) also added more than a percent, helped by a rally in property and brokerage stocks. The S&P/ASX 200 (INDEXASX:XJO) index closed higher for the first time in six days amid broad gains in financial stocks.
Stocks in News
Yahoo! Inc. (NASDAQ:YHOO)
Yahoo! Inc. (NASDAQ:YHOO) has submitted a formal proposal to buy premium video site Hulu, Reuters reported late Friday. Yahoo Inc joins a growing list of bidders that include Time Warner Cable Inc (NYSE:TWC), DIRECTV (NASDAQ:DTV) and Guggenheim Digital Media. Officials at Yahoo refrained from commenting on the report. Shares were up 1.2 percent at $26.33.
Canadian drug maker Valeant Pharmaceuticals Intl Inc (NYSE:VRX) (TSE:VRX) has agreed to buy eye care specialist Bausch & Lomb Holdings Inc from private equity firm Warburg Pincus LLC for $8.7 billion in cash. Bausch & Lomb is Valeant’s biggest acquisition, and the deal is expected to close in the third quarter of the year.
Tiffany & Co. (NYSE:TIF)
Tiffany & Co. (NYSE:TIF) reported first quarter profit excluding certain items of 70 cents per share, 18 cents above the average analysts’ estimate. Revenue was also well above consensus, with same store sales up 8 percent during the quarter. The luxury goods retailer reiterated its full-year profit forecast of $3.43 to $3.53 per share. Shares were up 5 percent to $80 in pre-open session.
AstraZeneca plc (ADR) (NYSE:AZN) has agreed to acquire New Jersey-based specialty drug company Omthera Pharmaceuticals Inc (NASDAQ:OMTH) for $12.7 per share, valuing the company at $323 million. Omthera shareholders are also entitled to contingent value rights of up to approximately $4.70 a share, or $120 million in total, if certain performance targets are met. Shares in Omthera soared 90 percent to $12.80 in pre-market trading.
Royal Caribbean Cruises Ltd. (NYSE:RCL)
Royal Caribbean Cruises Ltd. (NYSE:RCL) had to cut short a Grandeur of the Seas cruise after a fire broke out early Monday morning, causing extensive damage to several decks on the vessel. No serious injuries were reported, and the company spokesperson said all 2,224 guests and 796 crew members were safe. The cruise line operator also canceled the May 31st sailing of the cruise to repair the damages.
Economic Calendar for Tuesday, May 27, 2013:
09:00 A.M. ET: S&P/Case-Shiller Home Price Indices (YoY) (March)
10:00 A.M. ET: Consumer Confidence (May)
10:00 A.M. ET: Richmond Fed Manufacturing Index (May)
10:30 A.M. ET: Dallas Fed Manufacturing Business Index (May)
11:30 A.M. ET: 6-Month Bill Auction
11:30 A.M. ET: 3-Month Bill Auction
01:00 P.M. ET: 2-Year Note Auction