Morning News: Market Update
Stocks that are expected to trade actively in U.S. markets on Friday include: Elan Corporation, plc (ADR) (NYSE:ELN), AT&T Inc. (NYSE:T), Monsanto Company (NYSE:MON), Vail Resorts, Inc. (NYSE:MTN), Google Inc (NASDAQ:GOOG), TiVo Inc. (NASDAQ:TIVO), The Gap Inc. (NYSE:GPS), GlaxoSmithKline plc (ADR) (NYSE:GSK), Quiksilver, Inc. (NYSE:ZQK), Thor Industries, Inc. (NYSE:THO) and salesforce.com, inc. (NYSE:CRM).
Morning News: Market Levels
• US: Dow Futures: 15061.00 (0.17%), S&P 500 Futures: 1629.70 (0.43%), NASDAQ Futures: 2954.25 (0.16%)
• Europe: CAC: 3830.69 (0.43%), DAX: 8131.04 (0.40%), FTSE: 6358.32 (0.35%)
• Asia-Pacific: Australia: 4737.70 (-0.91%), China: 2210.90 (-1.41%), Hong Kong: 21575.26 (-1.22%), Japan: 12877.53 (-0.21%).
• Metals: Gold: 1409.70 (-0.43%), Silver: 22.52 (-0.82%), Copper: 3.32 (-0.08%)
• Energy: Crude Oil: 95.26 (0.53%), Natural Gas: 3.87 (1.02%)
• Commodities: Corn: 5.53 (1.06%), Soya Bean: 15.38 (-0.13%), Wheat: 7.01 (-0.68%)
• Currency: EUR/USD: 1.3246 (0.00%), GBP/USD: 1.5571 (-0.19%), USD/JPY: 95.7200 (-1.29%)
• 10 year US Treasury: 2.115% (0.022)
Morning News: Market and Economic News Update
U.S. stock-index futures gain: U.S. stock-index futures are pointing to a higher open on Friday after data showed U.S. employers added slightly more jobs than expected in May. The government’s monthly employment report showed the economy added 175,000 jobs in May, more than the 158,000 that economists were expecting, while the unemployment rate rose to 7.6 percent from 7.5 percent in April. Looking ahead, at 3 P.M. ET, the Federal Reserve will release its April consumer credit report, with economists forecasting a $12.5 billion gain.
European markets rebound: European markets rebounded from lows made earlier in the session, and are up in recent trading, following the release of the monthly U.S. government employment report. On the regional economic front, the German central bank slashed its growth outlook for the country for 2013 and 2014. The DAX (INDEXDB:DAX), the CAC 40 (INDEXEURO:PX1) and the FTSE 100 (INDEXFTSE:UKX) are all close to half a percent higher. The euro zone blue-chip ESTX 50 PR.EUR (INDEXSTOXX:SX5E) (Euro Stoxx 50) added 0.5 percent.
Asian markets end lower: Asian stocks fell in a choppy session on Friday as investor preferred to stay on the sidelines ahead of the U.S. non-farm payrolls data. The NIKKEI 225 (INDEXNIKKEI:NI225) closed in the red for a third straight day as exporters came under intense selling pressure following the yen’s sharp overnight gains. The SSE Composite Index (SHA:000001) (Shanghai Composite Index) reversed from early morning highs to end at a fresh three-week low. The S&P/ASX 200 (INDEXASX:XJO) index closed at a new four-and-a-half-month low, hurt by big declines in mining stocks.
Stocks in Morning News:
Elan Corporation, plc (ADR) (NYSE:ELN)
U.S. based Royalty Pharma has raised its hostile takeover bid for Irish specialty drug company Elan Corporation, plc (ADR) (NYSE:ELN) to $13.00 a share in cash, plus a contingent value right of as much as $2.50 a share based on future sales of multiple sclerosis drug Tysabri. The contingent value right payment would mean Royalty would offer Elan shareholders payouts if Tysabri passed certain sales and development milestones. This is the second time Royalty has increased the offer for the drug maker since its initial proposal on February 25.
AT&T Inc. (NYSE:T)
AT&T Inc. (NYSE:T) expects to add 500,000 net wireless subscribers in the second quarter, helped by aggresive promotions to lure customers. Consolidated margins during the period are expected to be down from the year earlier, due to the strong customer additions and investments in new growth opportunities. However, AT&T backed its full-year revenue guidance.
Monsanto Company (NYSE:MON)
Monsanto Company (NYSE:MON) said its board has approved a $2 billion share buyback program in an effort to bolster shareholder returns. The repurchases will be made over a three year period, and will be effective July 1. The agriculture giant also declared a quarterly dividend of 37.5 cents a share, payable July 26 to shareholders of record as of July 5. Shares edged higher in pre-open trading.
Vail Resorts, Inc. (NYSE:MTN)
Vail Resorts, Inc. (NYSE:MTN) reported lower than expected third quarter earnings and revenue, sending shares lower in pre-market trading. The ski resort operator’s earnings came in at $2.66 a share, compared to the consensus estimate of $2.74 a share. Revenue gained 12 percent to $469.7 million, also missing expectations for $474 million.
Google Inc (NASDAQ:GOOG), TiVo Inc. (NASDAQ:TIVO)
Google Inc (NASDAQ:GOOG)’s Motorola Mobility unit has reached a settlement with set-top box maker TiVo Inc. (NASDAQ:TIVO) ahead of a patent infringement trial that was scheduled to start in a Texas court next week. The terms of the settlement were not been disclosed. Shares of TiVo Inc. jumped in early trade following the announcement.
The Gap Inc. (NYSE:GPS)
The Gap Inc. (NYSE:GPS), which owns brands such as Banana Republic and Old Navy, said May same-store sales rose 7 percent, topping expectations for a gain of 4.1 percent. Net sales for the four-week period ended June 1, 2013 increased 11 percent to $1.22 billion from $1.10 billion in the same period last year. Shares climbed in early morning trade.
GlaxoSmithKline plc (ADR) (NYSE:GSK)
A U.S. Food and Drug Administration advisory panel voted to recommend looser restrictions on GlaxoSmithKline plc (ADR) (NYSE:GSK)’s controversial diabetes drug Avandia. The final decision on whether to act on the panel’s recommendation now lies with FDA Commissioner Margaret Hamburg. Avandia was once the world’s best-selling diabetes pill, but in 2010, the FDA heavily restricted its use in the United States after studies showed an increased risk of serious heart problems in patients taking the drug.
Quiksilver, Inc. (NYSE:ZQK)
Quiksilver, Inc. (NYSE:ZQK) reported weak second quarter results, sending shares sharply lower in pre-open session. The surfwear maker posted a loss of 12 cents a share, missing estimates for a gain of 4 cents a share. In addition, the company recorded sales of $459 million, falling short of consensus estimates of $505 million.
Thor Industries, Inc. (NYSE:THO)
Recreational vehicle maker Thor Industries, Inc. (NYSE:THO) posted better than expected third quarter earnings amid stronger sales and a lower tax rate. Excluding certain items, earnings came in at 97 cents a share that easily beat the average analysts’ estimate of 88 cents a share. Revenue increased 13 percent to $1.05 billion, in line with forecasts. Shares were up in pre-market trading.
salesforce.com, inc. (NYSE:CRM)
salesforce.com, inc. (NYSE:CRM) has hired former Oracle Corporation (NASDAQ:ORCL) executive Keith Block as its new president and vice chairman. Block will be responsible for leading the company’s global sales, customer support and consulting services units, Salesforce said in a statement today. Earlier this week, Salesforce agreed to acquire ExactTarget Inc (NYSE:ET) for $2.5 billion to expand its marketing portfolio. Shares of Salesforce.com gained in early hours trading.
Morning News: Economic Calendar for Friday, June 07, 2013:
08:30 A.M. ET: Non-farm Payrolls (May)
08:30 A.M. ET: Unemployment Rate (May)
08:30 A.M. ET: Average Weekly Hours (May)
08:30 A.M. ET: Average Hourly Earnings (YoY) (May)
08:30 A.M. ET: Average Hourly Earnings (MoM) (May)
03:00 P.M. ET: Consumer Credit Change (April)