Morning Market Update
Stocks that are expected to trade actively in U.S. markets on Monday include: Apple Inc. (NASDAQ:AAPL), The Walt Disney Company (NYSE:DIS), Health Management Associates Inc (NYSE:HMA), FleetMatics Group PLC (NYSE:FLTX), Westell Technologies Inc. (NASDAQ:WSTL), Tellabs, Inc. (NASDAQ:TLAB)
US: Dow Futures: 14906.00 (0.55%), S&P 500 Futures: 1606.00 (0.42%), NASDAQ Futures: 2922.00 (0.72%)
Europe: CAC: 3760.13 (0.56%), DAX: 7975.75 (0.21%), FTSE: 6270.34 (0.88%)
Asia-Pacific: Australia: 4710.30 (-1.92%), China: 1995.24 (0.80%), Hong Kong: 20803.29 (1.75%), Japan: 13852.50 (1.26%).
Metals: Gold: 1236.40 (2.05%), Silver: 19.48 (0.05%), Copper: 3.15 (3.14%)
Energy: Crude Oil: 97.46 (0.93%), Natural Gas: 3.54 (-0.59%)
Commodities: Corn: 5.06 (-6.12%), Soya Bean: 12.56 (-2.12%), Wheat: 6.59 (-2.45%)
Currency: EUR/USD: 1.3030 (0.15%), GBP/USD: 1.5219 (0.04%), USD/JPY: 99.7200 (0.59%)
10-year US Treasury: 2.523% (0.041)
Market and Economic News Update:
U.S. stock-index futures gain: U.S. stock-index futures are pointing to a higher open despite weaker than expected manufacturing data. Markit Manufacturing PMI fell to 51.9 in June, compared to the consensus estimate for 52.3. This is the slowest rate of growth since October last year. “Manufacturing clearly down-shifted a gear between the first and second quarters, and is at risk of losing further momentum as we head into the second half of the year,” Markit chief economist Chris Williamson said on Monday. Also on the economic front, the ISM manufacturing index is due on Monday, with analysts expecting a reading of 50.6, up from 49.0 in May.
European markets gain: European markets are up in trade following better than expected euro zone manufacturing data. The euro-zone manufacturing purchasing managers index jumped to a 16-month high of 48.8 in June. The CAC 40 (INDEXEURO:PX1) added 0.6 percent to 3760.13, while the DAX (INDEXDB:DAX) edged 0.2 percent higher to 7975.75. The FTSE 100 (INDEXFTSE:UKX) jumped 0.9 percent to 6270.34 points. The euro zone blue-chip ESTX 50 PR.EUR (INDEXSTOXX:SX5E) (Euro Stoxx 50) was up 0.6 percent in recent trading.
Asian markets end mixed: Asian stocks ended mixed in a choppy session of trade after data showed Chinese industrial activity declined in May. The official Purchasing Managers’ Index for June declined to 50.1 from 50.8 in May, while the HSBC monthly PMI fell to 48.2 in June from 49.2 in May. Despite the disappointing data, the SSE Composite Index (SHA:000001) (Shanghai Composite Index) closed a percent higher, largely due to a rally in property stocks. The NIKKEI 225 (INDEXNIKKEI:NI225) rebounded from lows made earlier in the day to close at its highest level in a month after the Bank of Japan’s “Tankan” survey showed corporate sentiment turned positive for the first time in two years. The S&P/ASX 200 (INDEXASX:XJO) index was the worst performer in the region, slipping close to 2 percent.
Stocks in News:
Apple Inc. (NASDAQ:AAPL)
French anti-trust watchdog Autorite de la Concurrence conducted country-wide searches in Apple Inc. (NASDAQ:AAPL)’s offices, wholesalers and retailers last week as part of a probe into whether the software giant carries out anti-competitive practice in the country, Les Echos newspaper reported on Monday. Separately, Apple Inc. (NASDAQ:AAPL) has signed a deal with Taiwan Semiconductor Manufacturing Co. to outsource some of its application processor manufacturing, according to a Wall Street Journal report.
News Corp. formally split into two separate companies after the close of trading on Friday. Existing shareholders will get one share in the new publishing company for every four shares they hold in the media entity. News Corp will begin trading on the NASDAQ under the symbol NWSA, while the entertainment business, 21st Century Fox, whose assets include the Fox cable network and the 20th Century Fox movie studio, will trade on the same exchange under FOXA.
The Walt Disney Company (NYSE:DIS)
The Walt Disney Company (NYSE:DIS)’s “Monsters University” retained the top spot in North American theatres for the second straight weekend, raking in $46.1 million in ticket sales. The movie is a prequel to Pixar’s 2001 hit “Monsters, Inc.” Disney acquired Pixar for $7.01 billion in 2006.
Health Management Associates Inc (NYSE:HMA)
Health Management Associates Inc (NYSE:HMA) has urged shareholders not to respond to efforts by activist investor Glenview Capital Management LLC to nominate eight candidates to the company’s board. Glenview has a 14.6 percent stake in the hospital operator, making it the largest shareholder. Health Management has hired Morgan Stanley and Weil, Gotshal & Manges LLP to review strategic options.
FleetMatics Group PLC (NYSE:FLTX)
The fleet-management software provider has announced plans to offer eight-million shares, of which, seven million will be sold by certain shareholders. FleetMatics had more than 34.6 million shares outstanding as of March 31, and plans to use proceeds from the sale for working capital and other general corporate purposes. Shares closed Friday at $33.23 a share.
Westell Technologies Inc. (NASDAQ:WSTL), Tellabs, Inc. (NASDAQ:TLAB)
Telecom equipment provider Westell Technologies Inc. (NASDAQ:WSTL) has named Tom Minichiello as its chief financial officer. Till recently, Minichiello was the acting finance chief at Tellabs, Inc. (NASDAQ:TLAB). Westell and Tellabs shares were inactive in pre-market trading.
Economic Calendar for Monday, July 01, 2013:
08:58 A.M. ET: Markit Manufacturing PMI (June)
10:00 A.M. ET: Construction Spending (MoM) (May)
10:00 A.M. ET: ISM Manufacturing PMI (June)
10:00 A.M. ET: ISM Prices Paid (June)
11:30 A.M. ET: 6-Month Bill Auction
11:30 A.M. ET: 3-Month Bill Auction