Morning Market Update
Stocks that are expected to trade actively in U.S. markets on Friday include: BlackBerry Ltd (NASDAQ:BBRY) (TSE:BB), Lions Gate Entertainment Corp. (USA) (NYSE:LGF), J.C. Penney Company, Inc. (NYSE:JCP), NVIDIA Corporation (NASDAQ:NVDA), Juniper Networks, Inc. (NYSE:JNPR), Priceline.com Inc (NASDAQ:PCLN), Ubiquity Networks Inc (NASDAQ:UBNT), NRG Energy Inc (NYSE:NRG), Ellie Mae Inc (NYSE:ELLI), Dendreon Corporation (NASDAQ:DNDN).
US: Dow Futures: 15412.00 (-0.26%), S&P 500 Futures: 1689.00 (-0.28%), NASDAQ Futures: 3125.00 (-0.06 %)
Europe: CAC: 4067.48 (0.08%), DAX: 8327.08 (0.15%), FTSE: 6559.78 (0.46%)
Asia-Pacific: Australia: 5055.20 (-0.19%), China: 2052.23 (0.36%), Hong Kong: 21807.56 (0.70%), Japan: 13615.19 (0.07%).
Metals: Gold: 1307.90 (-0.15%), Silver: 20.20 (0.01%), Copper: 3.28 (0.41%)
Energy: Crude Oil: 103.90 (0.48%), Natural Gas: 3.31 (0.36%)
Commodities: Corn: 4.59 (-0.11%), Soya Bean: 11.93 (0.74%), Wheat: 6.56 (0.38%)
Currency: EUR/USD: 1.3368 (-0.10%), GBP/USD: 1.5512 (-0.17%), USD/JPY: 96.3200 (-0.36%)
10-year US Treasury: 2.586% (-0.002)
Market and Economic News Update:
U.S. stock-index futures decline: U.S. stock-index futures are pointing to a lower open on Friday, amid continued investor speculation about the timing of potential reduction in Federal Reserve’s monetary stimulus. June wholesale inventory data is scheduled for release at 10 am ET. Analysts expect inventories to gain 0.4 percent while sales are expected to rise 0.7 percent.
European markets rise: European markets are up in trade, mirroring gains in Asia, buoyed by upbeat Chinese data and some better than expected corporate earnings. In economic news, French industrial production unexpectedly dropped 1.4 percent in June, with output dipping across most sectors. Economists had expected a 0.1 percent rise. The CAC 40 (INDEXEURO:PX1) added 0.1 percent to 4067.48, while the DAX (INDEXDB:DAX) gained 0.2 percent to 8327.08. The FTSE 100 (INDEXFTSE:UKX) edged 0.5 percent higher to 6559.78 points. The euro zone blue-chip ESTX 50 PR.EUR (INDEXSTOXX:SX5E) (Euro Stoxx 50) was largely unchanged in recent trading.
Asian stocks mostly higher: Asian markets gained in trade following some better than expected economic data from China. Consumer prices in China rose at a lower-than expected 2.7 percent in July, while July industrial production grew 9.7 percent year-over-year, compared with 8.9 percent in June. The SSE Composite Index (SHA:000001) (Shanghai Composite Index) closed above the 2,050 mark to end the week in positive territory. The NIKKEI 225 (INDEXNIKKEI:NI225) rebounded from the previous day’s one-month low to end flat, amid a marginally weaker yen. The S&P/ASX 200 (INDEXASX:XJO) index fell 0.3 percent despite a rally in mining stocks.
Stocks in News:
BlackBerry Ltd (NASDAQ:BBRY) (TSE:BB)
Shares in BlackBerry Ltd (NASDAQ:BBRY) (TSE:BB) rallied in pre-open trade after Reuters reported that the company was open to going private. The board of the mobile technology company has come around to the idea of a private buyout, though no deal is imminent. Citing anonymous sources, Reuters said Chief Executive Thorsten Heins and the board are increasingly considering that delisting would get shareholders off their back and give them the freedom to engineer a turnaround, away from the public eye.
Lions Gate Entertainment Corp. (USA) (NYSE:LGF)
Lions Gate Entertainment Corp. (USA) (NYSE:LGF) posted better than expected quarter results amid strong revenue growth at its TV production and home entertainment units. Excluding items, earnings came in at 18 cents a share, 10 cents above the average analysts’ estimate. Revenue jumped 21 percent to $569.7 million, also topping forecasts of $523 million. Shares rose in extended-hours trading.
J.C. Penney Company, Inc. (NYSE:JCP)
Shares of embattled retailer J.C. Penney Company, Inc. (NYSE:JCP) fell in early morning trade on Friday after the board slammed hedge-fund manager Bill Ackman for a letter in which he criticized the board, and said the company has “made significant progress” since Mike Ullman returned as its Chief Executive Officer four months ago. http://www.valuewalk.com/2013/08/j-c-penney-dislike-ackmans-fire-ceo/
NVIDIA Corporation (NASDAQ:NVDA)
NVIDIA Corporation (NASDAQ:NVDA) reported second quarter earnings of 16 cents a share on sales of $977 million, exceeding expectations for 13 cents a share on revenue of $976 million. In addition, the graphics-chip maker provided lighter-than-expected current quarter revenue guidance, but said gross margins should be approximately flat, compared to the prior quarter. Shares slumped in early trading.
Juniper Networks, Inc. (NYSE:JNPR)
The U.S. Securities and Exchange Commission and the Department of Justice are looking into possible violations by the network infrastructure company of the U.S. Foreign Corrupt Practices Act, according to a 10Q filing. Shares closed Thursday at $22.16, and are down more than a percent in recent pre-market trading.
Priceline.com Inc (NASDAQ:PCLN)
Priceline.com Inc (NASDAQ:PCLN) posted second quarter earnings excluding one-time items of $9.70 a share, on revenue of $1.68 billion, easily topping the consensus estimate of $9.36 a share on sales of $1.66 billion. For the third quarter, the company expects earnings per share to be in the range of $15.30-$16.30, compared to Wall Street projections for $15.86. Shares edged higher in the pre-open session.
NRG Energy Inc (NYSE:NRG)
NRG Energy Inc (NYSE:NRG)’s second-quarter profit slumped 48 percent, as expenses soared and margins narrowed sharply. The energy company reported earnings of 39 cents on revenue sales of $2.93 billion, compared to expectations for 23 cents a share on revenue of $2.29 billion. Shares of were inactive in recent pre-market trading.
Ubiquity Networks Inc (NASDAQ:UBNT)
The technology company reported fourth quarter earnings of 33 cents a share on sales of $101 million, edging past expectations for 27 cents a share on revenue of $93 million. In addition the company handed current-quarter outlook that easily topped current Wall Street forecasts. Shares rallied in pre-market trade following the quarterly results.
Ellie Mae Inc (NYSE:ELLI)
Bloomberg reported late Thursday that the maker of mortgage-origination software is exploring a sale and has interviewed several banks to manage the process. Citing people with knowledge of the matter, the report said that Ellie Mae may start soliciting bids in the next two months. Shares closed Thursday at $30.98, and were up in recent trading.
Dendreon Corporation (NASDAQ:DNDN)
The biotechnology company posted second quarter loss of 45 cents a share on sales of $73 million, trailing Wall Street expectations for a loss of 36 cents a share on revenue of $82 million. In addition, Dendreon announced that CFO Gregory Schiffman will leave the company at the end of the year, and named Vice President Gregory Cox to assume the role of interim CFO. Shares plunged in early-hours trading.
Economic Calendar for Friday, August 09, 2013:
10:00 A.M. ET: Wholesale Inventories (June)