Every morning we put out a news report with the latest news in global stock markets, company news, and global economic news.
Morning Market Update
Nishkama Capital On GARP Investment Management
Nishkama Capital - Ravee Mehta On GARP Investment Management [Part Two] This is part two of a two-part interview with Ravee Mehta, the founder and portfolio manager of Nishkama Capital LLC. The interview is part of ValueWalk’s Value Fund Interview Series. You can find part one of the interview here. Throughout this series, we are publishing Read More
- US: Dow Futures: 12985.00 (0.20%), S&P 500 Futures: 1377.80 (0.56%), NASDAQ Futures: 2684.75 (1.98%)
- Europe: CAC: 3222.01 (1.64%), DAX: 6666.46 (1.14%), FTSE: 5709.92 (0.01%).
- Asia-Pacific: Australia: 4360.40 (0.00%), China: 2406.81 (0.75%), Hong Kong: 20646.29 (-0.15%), India: 5202.00 (-0.40%), Japan: 9561.01 (0.97%).
- Metals: Gold: 1643.00 (-0.05%), Silver: 30.85 (0.34%), Copper: 3.70 (0.65%)
- Energy: Crude Oil: 104.24 (0.67%), Natural Gas: 2.00 (1.32%)
- Commodities: Corn: 6.14 (-0.78%), Soya Bean: 13.68 (0.95%), Wheat: 6.38 (0.16%)
- Currency: EUR/USD: 1.3213 (0.12%), GBP/USD: 1.6115 (-0.18%), USD/JPY: 81.2800 (-0.05%)
- 10 year US Treasury: 1.996% (0.023)
Financial and Economic News Update
U.S. stock-index futures trading higher: U.S. stock index futures are pointing to a higher open on Wednesday, following better than expected results from Apple Inc. (NASDAQ:AAPL). The Dow Jones industrial average and S&P 500 were trading modestly in the green, while NASDAQ futures jumped close to 2 percent higher.
European markets edge higher: European markets were trading higher as forecast-beating corporate results over-shadowed lingering concerns over the euro zone debt crisis. The German DAX (INDEXDB:DAX) was 1.14 percent higher at 6666.46, the FTSE 100 (INDEXFTSE:UKX) was up 0.01 percent at 5709.92, and the CAC 40 (INDEXEURO:PX1) was up 1.64 percent at 3222.01. The euro zone blue-chip ESTX 50 PR.EUR (INDEXSTOXX:SX5E) (Euro Stoxx 50) rose 1.33 percent.
Asian markets end mixed: Asian markets closed mixed on Wednesday with the HANG SENG INDEX (INDEXHANGSENG:HSI) closing down 0.2 percent to 20646.29, while the Shanghai Composite Index (SHA:000001) finished 0.8 percent higher at 2406.81. The NIKKEI 225 (INDEXNIKKEI:NI225) ended up 1 percent at 9561.01. The S&P/ASX 200 (INDEXASX:XJO) index was closed today.
Company News Update
- The Boeing Company (NYSE:BA), the world’s largest aerospace and defense company, posted a higher than expected first-quarter profit on better sales of commercial airplanes. The company said first-quarter net profit stood at $923 million, or $1.22 per share, topping the average analysts’ estimate of 93 cents per share. Boeing also raised its earnings forecast for 2012
- Caterpillar Inc. (NYSE:CAT) posted a record first quarter profit of $1.59 billion, or $2.37 a share, as a recovery in the U.S. construction spending saw the company sell more excavators, dozers and dump trucks. Analysts were expecting a profit of $2.13 per share.
- Sprint Nextel Corporation (NYSE:S), the third- largest US wireless carrier, posted a first-quarter net loss of $863 million or 29 cents per share, which was narrower than the loss of 41 cents which analysts had projected.
- Eli Lilly & Co. (NYSE:LLY) said first quarter profit fell 4 percent to $1.01 billion, or 91 cents a share, from $1.06 billion, or 95 cents, a year earlier, as sales of its schizophrenia drug Zyprexa halved due to patent expirations. Analysts had forecast earnings of 78 cents a share. The Indianapolis drug maker also raised its full-year earnings estimate
- Wyndham Worldwide Corporation (NYSE:WYN) said first-quarter net income attributable tumbled to $32 million, or 21 cents per share, from $72 million, or 41 cents per share, a year ago, due to the hotel company’s debt refinancing efforts. Adjusted earnings per share was 60 cents, which easily topped Wall Street expectations.
- Aflac Incorporated (NYSE:AFL), the world’s biggest seller of supplemental health insurance said first-quarter earnings more than doubled over a year-earlier as investment losses narrowed.
- Norfolk Southern Corp. (NYSE:NSC), the second-biggest eastern U.S. railroad posted first quarter profit of $410 million, or $1.23 a share, up from $325 million, or 90 cents a share, a year earlier, easily beating the street expectation of $1.12 per share.
- Amgen, Inc. (NASDAQ:AMGN), the world’s largest biotechnology company reported first-quarter profit that beat analysts’ estimates led by strong sales of its lead infection drug Neulasta and Xgeva.
- Credit Suisse Group AG (ADR) (NYSE:CS), the second- largest Swiss bank, said first quarter net profit plunged 96 percent to 44 million Swiss francs ($48.3 million) from 1.14 billion francs last year. The results however beat the average analysts’ projection of a 297.9 million-franc loss.
- Peugeot SA (EPA:UG), Europe’s second-biggest carmaker, said first-quarter revenue slumped 7.3 percent to 14.29 billion euros ($18.9 billion), which still topped an average estimate of 14.10 billion euros.
- German industrial conglomerate Siemens AG (FRA:SIE) (NYSE:SI) slashed its annual profit forecast for the third time in five years, and said second quarter profit fell 67 percent to 1.05 billion euros, as sizable write downs weighed on earnings.
- Telefonaktiebolaget LM Ericsson (ADR) (NASDAQ:ERIC), the biggest maker of mobile network equipment, said first quarter net profit stood at 8.95 billion kronor ($1.33 billion), up from the 4.1 billion kronor earned in the same period last year, thanks to the 7.7 billion kronor it received from the sale of its stake in handset maker Sony Ericsson.
- SAP AG (FRA:SAP) (NYSE:SAP), the largest maker of business management software, reported first-quarter net income of 444 million euros ($585.9 million), trailing analyst estimates of 476 million euros. SAP reaffirmed its full year operating profits forecast.
- Zurich-based ABB Ltd. (ADR) (NYSE:ABB), the world’s largest maker of power-distribution equipment, reported first-quarter profit that matched analysts’ estimates after revenues grew across all divisions.
- Spain’s second-biggest bank, Banco Bilbao Vizcaya Argentaria SA (MCE:BBVA) (NYSE:BBVA), reported a slight fall in first-quarter net profit, but still managed to beat forecasts, as growth in emerging markets helped offset a slump in its home country.
- Canon Inc. (TYO:7751) (NYSE:CAJ), the world’s biggest camera maker, said first quarter net profit rose 11 percent to 61.54 billion yen from 55.46 billion yen for the same period a year earlier. The Tokyo-based company also increased its full-year profit forecast by 16 percent, predicting that a stronger demand for higher-end digital cameras and a weaker yen will lift the bottom line.
- South Korea’s LG Electronics, the world’s second biggest television manufacturer, bounced back to profitability in the first three months of 2012, after two straight loss-making quarters, as demand for high-end TVs picked up and mobile handset margins improved.
- Huaneng Power International, Inc. (HKG:0902) (NYSE:HNP), China’s largest independent power producer, said first-quarter net profit more than quadrupled to 919.36 million yuan ($146 million), or 7 cents a share, driven by higher tariffs and gains in its Singapore business.
- Baidu.com, Inc. (ADR) (NASDAQ:BIDU), China’s leading Internet search company, said first-quarter earnings rose 76 percent to 1.88 billion Chinese yuan ($299 million), from 1.07 billion yuan a year earlier, in line with analysts’ estimates. But the Beijing-based company forecast second-quarter revenue that was at the low end of Wall Street’s expectations
- Suntec Real Estate Investment Trust (SUN), the Singapore property trust which owns Suntec City, one of Singapore’s largest integrated commercial development, reported a 2.7 percent increase in its payout to shareholders.
- Perth-based conglomerate Wesfarmers Limited (ASX:WES) has reported a 4.1 per cent rise in third-quarter sales at its Coles supermarkets.
Economic Calendar for Wednesday, April 25, 2012:
07:00 A.M. ET: MBA Purchase Applications (Week ending Friday, April 20, 2012)
08:30 A.M. ET: Durable Goods Orders (March)
08:30 A.M. ET: Durable Goods Orders ex Transportation (March)
10:30 A.M. ET: EIA Petroleum Status Report (Week ending Friday, April 20, 2012)
11:30 A.M. ET: 5-Yr Note Auction
12:30 P.M. ET: Fed Interest Rate Decision
02:00 P.M. ET: FOMC Forecasts
02:15 P.M. ET: Fed’s Press Conference