Morning Market Update

market news

Stocks that are expected to trade actively in U.S. markets on Tuesday include: American Realty Capital Properties Inc (NASDAQ:ARCP), Zynga Inc (NASDAQ:ZNGA), Nielsen Hldg NV (NYSE:NLSN), Sprint Nextel Corporation (NYSE:S), Onyx Pharmaceuticals, Inc. (NASDAQ:ONXX), Pfizer Inc. (NYSE:PFE), Novartis AG (ADR) (NYSE:NVS), Cisco Systems, Inc. (NASDAQ:CSCO), Constellation Brands, Inc. (NYSE:STZ), Achillion Pharmaceuticals, Inc. (NASDAQ:ACHN), A. Schulman Inc (NASDAQ:SHLM), Xyratex Ltd. (NASDAQ:XRTX).

Market Levels:

US: Dow Futures: 14884.00 (0.01%), S&P 500 Futures: 1606.10 (-0.04%), NASDAQ Futures: 2921.00 (0.14%)
Europe: CAC: 3736.85 (-0.82%), DAX: 7892.58 (-1.16%), FTSE: 6276.05 (-0.51%)
Asia-Pacific: Australia: 4834.00 (2.63%), China: 2006.56 (0.56%), Hong Kong: 20658.65 (-0.70%), Japan: 14098.74 (1.75%).
Metals: Gold: 1254.60 (-0.09%), Silver: 19.58 (-0.02%), Copper: 3.15 (-0.36%)
Energy: Crude Oil: 98.36 (0.38%), Natural Gas: 3.61 (0.92%)
Commodities: Corn: 5.05 (-0.79%), Soya Bean: 12.48 (-0.40%), Wheat: 6.64 (1.45%)
Currency: EUR/USD: 1.3005 (-0.45%), GBP/USD: 1.5150 (-0.44%), USD/JPY: 100.2700 (0.61%)
10-year US Treasury: 2.484% (0.008)

Market and Economic News Update:

U.S. stock-index futures largely unchanged: U.S. stock-index futures are pointing to a flat open on Tuesday as traders look ahead to data on factory orders. Economists expect new orders for manufactured goods rose 1.9 percent in May compared to a gain of 1 percent in April. Also on Tuesday, monthly car sales figures for June will be released, with analysts expecting an annualized sales pace of between 15.5 and 15.7 million vehicles. Meanwhile, the Federal Reserve Board of Governors will meet at 9:30 A.M. ET to discuss the implementation of Basel III capital rules.

European markets decline: European markets fell in trade as investor’s booked prior session’s gains. On the economic front, Spanish unemployment rate fell by 2.6 percent on a month-on-month basis in June. This was the fourth straight monthly decline. In other economic news, U.K. business confidence jumped to its highest level since 2007, according to a survey conducted by the British Chambers of Commerce. The CAC 40 (INDEXEURO:PX1) lost 0.8 percent to 3736.85, while the DAX (INDEXDB:DAX) edged 1.2 percent lower to 7892.58. The FTSE 100 (INDEXFTSE:UKX) slid 0.5 percent to 6276.05 points. The euro zone blue-chip ESTX 50 PR.EUR (INDEXSTOXX:SX5E) (Euro Stoxx 50) was down 0.9 percent in recent trading.

Asian markets end mostly higher: Asian stocks closed higher on Tuesday after strong manufacturing reports in the U.S. and Europe helped improve investor sentiment. The S&P/ASX 200 (INDEXASX:XJO) index jumped more than 2 percent after the Reserve Bank of Australia kept the cash rate unchanged at 2.75 percent, and left the door open for future monetary easing, at its June meeting. The NIKKEI 225 (INDEXNIKKEI:NI225) rallied to its highest level in a month amid a weaker currency that helped export stocks across the board. The SSE Composite Index (SHA:000001) (Shanghai Composite Index) rebounded from lows made earlier in the session to close above the key 2,000 mark.

Stocks in News:

American Realty Capital Properties Inc (NASDAQ:ARCP)

American Realty Capital Properties Inc (NASDAQ:ARCP) has agreed to buy American Realty Capital Trust IV for $3.1 billion in cash and stock. Each American Realty Capital Trust shareholder will either receive $30 in cash or 2.05 shares of ARCP’s common stock. The deal is expected to close by the third quarter of the year.


Zynga Inc (NASDAQ:ZNGA) has named Microsoft’s Xbox division head Don Mattrick as its new CEO. Mattrick will replace founder Mark Pincus, who will stay on as chairman and chief product officer, the company said late Monday. Zynga’s stock is down almost 70 percent since the company’s 2011 initial public offering amid waning popularity of its games. Lat month, the company said it will cut 520 jobs as part of a cost cutting move.

Nielsen Hldg NV (NYSE:NLSN), Sprint Nextel Corporation (NYSE:S)

Nielsen Hldg NV (NYSE:NLSN) will join the S&P 500 (INDEXSP:.INX) after the close of trading on July 8. Nielsen will replace Sprint Nextel Corporation (NYSE:S), which has agreed to sell the bulk of its business to Japan’s Softbank Corp (TYO:9984). Nielsen’s shares rose 3.6% to $34.50 pre-market.

Onyx Pharmaceuticals, Inc. (NASDAQ:ONXX), Pfizer Inc. (NYSE:PFE), Novartis AG (ADR) (NYSE:NVS)

Onyx Pharmaceuticals, Inc. (NASDAQ:ONXX) shares will again be in focus today after Reuters reported that Pfizer Inc. (NYSE:PFE) and Novartis AG (ADR) (NYSE:NVS) are among several large pharmaceutical companies that have expressed interest in the biotechnology company. Onyx has rejected an $8.7 billion offer from Amgen, Inc. (NASDAQ:AMGN) saying that the offer was too low.

Cisco Systems, Inc. (NASDAQ:CSCO)

The networking equipment company has completed its acquisition of privately-held JouleX for $107 million in cash. JouleX was founded by Tom Noonan, and provides energy-management software for IT devices. Following the acquisition, JouleX employees will be integrated into Cisco’s Industry Solutions Group.

Constellation Brands, Inc. (NYSE:STZ)

Constellation Brands, Inc. (NYSE:STZ) reported weaker than expected first quarter results amid higher restructuring costs. Excluding certain items, earnings came in at 38 cents per share, two cents below estimates. Sales rose to $673.4 million, also trailing expectations $674 million. In addition, the spirits maker increased its full-year adjusted earnings estimate. Class A shares were down in pre-market trading.

Achillion Pharmaceuticals, Inc. (NASDAQ:ACHN)

The U.S. Food and Drug Administration has put a clinical hold on Achillion’s experimental oral hepatitis C drug sovaprevir due to safety concerns. The regulator said liver enzymes elevations were noticed in an early-stage study of the drug’s interaction with an HIV treatment. Shares plunged in pre-open trading following the news.

A. Schulman Inc (NASDAQ:SHLM)

A. Schulman Inc (NASDAQ:SHLM) reported third quarter earnings excluding one-time items of 50 cents a share, on sales of $549 million, compared to expectations for 65 cents a share on revenue of $576 million. In addition, the plastics supplier provided full-year earnings guidance that was sharply below analysts’ forecasts. Shares tumbled in early-hours trading.

Xyratex Ltd. (NASDAQ:XRTX)

The data-storage firm reported better than expected first quarter profit, sending shares higher in pre-market trading. Excluding items, adjusted profit was 10 cents a share, compared to the average analysts’ estimate of 5 cents a share. Revenue fell 33 percent to $216.2 million. For the current quarter, the company expects earnings between adjusted loss of 4 cents a share to a profit of 20 cents a share, on revenue of $195 million to $225 million.

Economic Calendar for Tuesday, July 02, 2013:

07:45 A.M. ET: ICSC-Goldman Store Sales
08:55 A.M. ET: Redbook Index (YoY) (June 23)
08:55 A.M. ET: Redbook Index (MoM) (June 23)
09:45 A.M. ET: ISM New York index (June)
10:00 A.M. ET: IBD/TIPP Economic Optimism (MoM) (July)
10:00 A.M. ET: Factory Orders (MoM) (May)
11:30 A.M. ET: 4-Week Bill Auction
12:30 P.M. ET: New York Federal Reserve Bank President William Dudley speaks.
05:45 P.M. ET: Federal Reserve Governor Jerome Powell speaks.