Morning Market News – March 26th 2012

Morning Market News - March 26th 2012

Every morning ValueWalk puts out a news report with the latest news in global stock markets, company news, and global economic news

Market Levels

Should You Go All In On Water Like Michael Burry?

Water investments? Michael Burry was one of the first institutional investors to bet against the US subprime mortgage market in the mid-2000s, and today he’s concentrating all of his investment efforts on one commodity: water. Burry’s focus on water has attracted plenty of attention to the commodity in the investment community but trying to profit Read More



  • US:  Dow Futures: 13118.00 (0.66%), S&P 500 Futures: 1402.90 (0.63%), NASDAQ Futures: 2747.25 (0.67%)
  • Europe: CAC: 3491.38 (0.44%), DAX: 7072.84 (1.09%), FTSE: 5897.04 (0.71%).
  • Asia-Pacific:Australia: 4262.80 (-0.18%),China: 2350.60 (0.05%),Hong Kong: 20668.86 (0.00%),India: 5184.25 (-1.78%),Japan: 10018.24 (0.07%).
  • Metals: Gold: 1676.60 (0.85%), Silver: 32.62 (1.08%), Copper: 3.85 (1.21%)
  • Energy: Crude Oil: 107.03 (0.15%), Natural Gas: 2.29 (0.53%)
  • Commodities: Corn: 6.46 (-0.12%), Soya Bean: 13.77 (1.22%), Wheat: 6.54 (1.00%)
  • Currency: EUR/USD: 1.3314 (0.33%), GBP/USD: 1.5921 (0.32%), USD/JPY: 82.7100 (0.44%)
  • 10 year US Treasury: 2.255% (0.022)


Market and Economy News Update



U.S. stock-index futures rise: Stock index futures pointed to a higher open on Monday amid comments from Fed chairman Ben Bernanke that gave investors hope of a further quantitative easing from the central bank. The Dow, S&P 500 and NASDAQ futures were trading close to 0.6 percent higher.


European markets trading higher: Markets were trading in the green on Monday, after a survey showing an increase in German business confidence helped offset concerns inSpain over the government’s inability to secure a majority in a regional election on Sunday. The FTSE was up 0.8 percent, while the CAC 40 gained 0.5 percent and the German DAX increased 1.15 percent.


German business confidence rises in March: The closely-watched business sentiment indicator of the Munich-based Ifo institute rose for the fifth month in a row, further strengthening the view thatEurope’s largest economy will return to growth. The business climate index increased to 109.8, an eight month high, from 109.6 in February.


Asian markets end mixed:  Asian markets ended mixed on Monday over fears that Chinese banks could have understated the risks of loans to provincial governments. After last week’s retreat, Japan’s Nikkei average gained 0.1 percent as investors bought metal stocks. The Shanghai Composite closed 0.05 percent higher, while the Hang Seng Index ended flat in weak Monday trade. The Australian market closed slightly lower after a sell-off late in the session gave up early gains.
Company News Update



  • Lions Gate Entertainment (NYSE:LGF) soared 4.5 percent in New York trading after its movie “The Hunger Games” collected $155 million in North America over the weekend, much more than the $125 million to $135 million analysts had expected.
  • BATS Global Markets said it has no further plans for an initial public offering after the exchange operator had to scrap its IPO on Friday after technical problems.
  • Illinois-based farm-equipment maker, Deere & Co. (NYSE:DE), jumped 2.2 percent after Barron’s reported that the stock may rise to $100 in 12 months. The company plans to build seven plants around the world and has had seven straight quarters of record earnings.
  • Cal-Maine Foods (NASDAQ:CALM), the egg seller and distributor, fell 1.8 percent in morning trading, after reporting a 22 percent fall in fiscal third-quarter profit amid rising feed costs.
  • Pennsylvania-based maker of floors, ceilings and cabinets, Armstrong World Industries Inc. (NYSE:AWI) gained 3 percent after the company disclosed plans of paying a special cash dividend of $8.55 a share.
  • Verisk Analytics Inc. (NASDAQ:VRSK), the New Jersey-based information-services company has agreed to acquire MediConnect Global Inc, a provider of systems and services for medical- record analysis, for $348.6 million.


  • Aberdeen Asset Management Plc (LON:ADN), which recently joined London’s blue-chip FTSE 100 index, jumped 3.7 percent after reporting 1.4 billion pounds ($2.2 billion) of net capital inflows from clients in the first two months of the year.
  • Diageo Plc (LON:DGE), the world’s largest liquor company, rose 1.9 percent in London trading, after ING Groep NV hiked its share-price estimate to 1,520 pence from 1,329 pence.
  • Europe’s second-biggest discount carrier, EasyJet (LON:EZJ), soared 7.3 percent after the airline revised its earnings outlook and predicted a first-half pretax loss narrower than previously expected.
  • Spanish banks were the standout losers today, with Banco Bilbao Vizcaya Argentaria SA (BBVA), the country’s biggest bank, falling 2.9 percent and rival Banco Santander SA (SAN) trading 2.6 percent down.
  • Swiss drugmaker Roche Holding AG (ROG.VX) on Monday extended its $5.7 billion cash bid for San Diego-based gene decoder Illumina (NASDAQ:ILMN), offering $44.50 per share. Roche shares were up 0.5 percent.



  • Qantas Airways (ASX:QAN) rose 2 percent in Sydney trading after signing a joint-venture deal with China Eastern Airlines (HK:0670), the country’s third-largest airline by market value, to launch a Hong Kong-based budget airline next year.
  • Tokyo Electric Power Co (TYO:9501), the operator of the tsunami-hit Fukushima power plant, slid 2.3 percent in Tokyo after it shut down its last operating nuclear reactor on Monday for scheduled safety checks.
  • Nomura Holdings (TYO:8604) extended last week’s losses and fell 2.7 percent today, amid allegations of insider-trading related to Inpex Corp. (TYO:1605)’s 2010 equity offering.
  • China Construction Bank (HK:0939), fell 1 percent in Hong Kong after the world’s second-largest lender warned of a tough 2012 due to the slowing global and domestic economies. CCB reported a 26 percent increase in 2011 net profit but said non-performing loans (NPLs) rose almost 10 percent in the quarter.
  • China Petroleum & Chemical (HK:0386), the country’s second largest integrated oil company, gained 1.5 percent in Hong Kong after posting a 2 percent increase in net profit for 2011. The company however reported a 30 percent fall in fourth-quarter net profit as losses at its refining division offset upstream gains.
  • The Warren Buffett-backed Chinese battery and car maker, BYD Co. (HK:1211), shed 4.8 percent inHong Kong after saying first-quarter profit may slump as much as 95 percent. The company reported a 45 percent fall in 2011 net profit because of stiff competition in the domestic auto market.


Economic Calendar for Monday, March 26, 2012:


07:30 A.M. ET:     Philadelphia Federal Reserve Bank President Charles Plosser speaks.

08:00 A.M. ET:     Ben Bernanke Speaks

08:30 A.M. ET:    ChicagoFed National Activity Index (February)

10:00 A.M. ET:     Pending Home Sales Index (February)

10:30 A.M. ET:    DallasFed Mfg Survey (March)

11:00 A.M. ET:     4-Week Bill Announcement

11:30 A.M. ET:     3-Month Bill Auction

11:30 A.M. ET:     6-Month Bill Auction