Market & Company News: Updates on EBAY, JCP, BKS, DELL, MSFT, GMCR

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Market & Company News: Updates on EBAY, JCP, BKS, DELL, MSFT, GMCREvery morning We put out a news report with the latest news in global stock markets, company news, and global economic news.

Morning Market Update  

Market Levels

Pros And Cons Of Tail Risk Funds

tail risk fundsEditor’s note: This article is part of a series ValueWalk is doing on tail risk hedge funds. The series is based on over a month of research and discussions with over a dozen experts in the field. All the content will be first available to our premium subscribers and some will be released at a Read More


 * US: Dow Futures: 12526.00 (-0.08%), S&P 500 Futures: 1319.70 (-0.22%), NASDAQ Futures: 2531.75 (-0.18%)

* Europe: CAC: 3024.55 (-0.46%), DAX: 6288.11 (-0.44%), FTSE: 5317.33 (-0.62%).

* Asia-Pacific: Australia: 4029.20 (-0.66%), China: 2333.55 (-0.75%), Hong Kong: 18713.41 (0.25%), India: 4920.40 (-0.02%), Japan: 8580.39 (0.20%).

* Metals: Gold: 1560.20 (0.17%), Silver: 28.08 (-0.26%), Copper: 3.44 (0.41%)

* Energy: Crude Oil: 90.67 (0.01%), Natural Gas: 2.69 (-0.66%)

* Commodities: Corn: 5.85 (-3.76%), Soya Bean: 12.75 (1.37%), Wheat: 6.73 (-0.49%)

* Currency: EUR/USD: 1.2515 (-0.14%), GBP/USD: 1.5667 (-0.02%), USD/JPY: 79.6000 (-0.00%)

* 10 year US Treasury: 1.748% (-0.029)

Financial and Economic News Update

 U.S. stock-index futures trading lower: U.S. stock index futures are pointing to a lower open on Friday amid investor concerns over the euro zone debt crisis. The Dow Jones industrial average, the S&P 500 and the NASDAQ futures are all trading marginally in the red.

 European markets in the red: European markets declined on Friday, with the German DAX (INDEXDB:DAX) trading 0.4 percent lower at 6288.11, the FTSE 100 (INDEXFTSE:UKX) down 0.6 percent at 5317.33, and the CAC 40 (INDEXEURO:PX1) fell 0.5 percent to 3024.55. The euro zone blue-chip ESTX 50 PR.EUR (INDEXSTOXX:SX5E) (Euro Stoxx 50) was trading 0.8 percent lower.

Asian markets end mixed: Asian markets closed mixed on Friday with Japan’s NIKKEI 225 (INDEXNIKKEI:NI225) gaining up 0.2 percent at 8,580.39. The HANG SENG INDEX (INDEXHANGSENG:HSI) closed up 0.25 percent at 18,713.41, while the SSE Composite Index (SHA:000001) (Shanghai Composite Index) finished lower 0.7 percent at 2,333.6 points. The S&P/ASX 200 (INDEXASX:XJO) index closed down 0.7 percent at 4,029.2, the lowest closing level since Nov. 25. The benchmark Indian 30-share BSE SENSITIVE (INDEXBOM:SENSEX) index ended flat at 16,230.32 points.

Company News Update

 U.S.

 * Mentor Graphics Corp (NASDAQ:MENT)reported fiscal first quarter adjusted earnings of 30 cents a share, topping the average analysts’ estimate of 25 cents a share. Revenues for the quarter stood at $247.92 million, compared with $230.03 million in the previous year, trailing Street expectations.

* PayPal, owned by eBay Inc (NASDAQ:EBAY), has made deals with 15 retailers including J. C. Penney Company, Inc. (NYSE:JCP), Barnes & Noble, Inc. (NYSE:BKS), Office Depot Inc (NYSE:ODP) and Toys R Us that will allow consumers to pay for purchases with their cell phones, helping the online payment giant expand into more physical stores.

* Dish Network Corp. (NASDAQ:DISH) has been sued by broadcasters Fox, NBC and CBS over its new feature AutoHop that allows subscribers to skip over commercials in recorded content.

* U.S. generic drug maker Mylan Inc. (NASDAQ:MYL) settled a patent infringement suit with Sunovion Pharmaceuticals, a unit of Japanese drug maker Dainippon Sumitomo Pharma Co., Ltd. (TYO:4506), over the bronchitis and emphysema drug Brovana. Mylan had sued Sunovion in 2007, alleging that its drug Brovana infringes seven of Mylan’s patents.

* Dell Inc. (NASDAQ:DELL) is in talks to acquire Aliso Viejo, California-based maker of database-management software, Quest Software, Inc. (NASDAQ:QSFT), Bloomberg reported. Quest Software was trading 3.9 percent higher in early morning trade.

* NBCUniversal is in talks with Microsoft Corporation (NASDAQ:MSFT) to acquire its 50 percent stake in the MSNBC.com website, AdWeek reported.

* Douglas Daft, an independent director at Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR) resigned from the board this week, Daft, the former chairman and CEO of The Coca-Cola Company (NYSE:KO), announced his resignation at a time when the company has been under the scanner for allegations of accounting malpractice.

* Semiconductor company Semtech Corporation (NASDAQ:SMTC) reported first quarter earnings excluding items of 27 cents a share, on revenue of $116.6 million, trailing analysts’ expectations of earnings of 31 cents a share, on revenue of $119.8 million. The company provided second quarter outlook that was in line with current Street estimates.

* Diversified industrial manufacturer Illinois Tool Works Inc. (NYSE:ITW) jumped 1.3 percent in New York pre-market trading after JPMorgan Chase & Co. (NYSE:JPM) recommended buying the company’s shares.

Europe

 * Trading in the securities of Spain’s fourth-biggest lender Bankia SA was suspended on the Madrid stock exchange amid reports that the bank is expected to ask the Spanish Government for a rescue of more than 15 billion euros ($19 billion).

* Air-France-KLM (EPA:AF) plans to cut fleet and staff spending, and will reorganize its European business into three units, to reduce costs.

* GlaxoSmithKline plc (ADR) (NYSE:GSK), AstraZeneca plc (ADR) (NYSE:AZN), Johnson & Johnson (NYSE:JNJ) and Sanofi SA (ADR) (NYSE:SNY) will collaborate in a £180 million research project to tackle growing threat from bugs’ resistance to antibiotics.

* German specialty chemical maker Evonik Industries AG, owned by private equity firm CVC Capital Partners and RAG-Stiftung, is planning to make its debut on Frankfurt’s bourse in coming weeks, in what will be the country’s biggest IPO in more than a decade.

* Aviva Plc (ADR) (NYSE:AV) was raised to “outperform” from “underperform” at Exane BNP Paribas, while Logica Plc (LON:LOG), the Anglo-Dutch computer-services provider, was upgraded to “buy” from “neutral” at UBS AG. HSBC Holdings Plc upgraded Aggreko plc (LON:AGK), the world’s largest provider of mobile-power supplies, to “overweight” from “neutral”.

 Asia-Pacific

 * Japan Tobacco Inc (TYO:2914), the world’s third-largest cigarette maker, has agreed to buy privately-held Belgian tobacco product maker Gryson NV for 475 million euros ($597.66 million), to expand its foothold in the European market.

* Cnooc Limited (ADR) (NYSE:CEO), China’s largest offshore oil producer has made a new oil discovery in the south Liaodong Bay of the Bohai Sea, with a daily production of around 608 barrels.

* Struggling Japanese chipmaker Renesas Electronics Corporation (TYO:6723) is mulling over a plan to raise 100 billion yen ($1.3 billion) and cut more than 10,000 jobs, under a new restructuring plan, Bloomberg reported.

* U.S. financial giant Goldman Sachs Group, Inc. (NYSE:GS) is planning to launch a private real estate investment trust in Japan with as much as 50 billion yen ($628 million) amid signs of a turnaround in the property market there.

* AirAsia, the region’s biggest discount carrier, is looking at buying another 50 Airbus A320 passenger jets for about $4 billion, just months after placing a record order for 200 such aircrafts.

* Australian broking house Macquarie Group Limited (ASX:MQG) reckons that upmarket department store David Jones Limited (ASX:DJS) is a prime target for a possible leveraged buyout because of its valuable real estate portfolio. The stock ended 3.2 percent higher in Sydney.

Economic Calendar for Friday, May 25, 2012:

 05:30 A.M. ET: Philadelphia Federal Reserve Bank Pres. Charles Plosser speaks.

09:55 A.M. ET: Reuters/Michigan Consumer Sentiment Index (May)