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
Today, Apple is the largest public company in the world, and the group’s iPhones can be found in stores all over the globe, but not long ago the company was a baby when the Apple IPO was filed in the 1970s. Not only is Apple the world’s most valuable company, but it’s also arguable that Read More
- US: Dow Futures: 12397.00 (0.50%), S&P 500 Futures: 1295.30 (0.35%), NASDAQ Futures: 2481.00 (0.52%)
- Europe: CAC: 3009.93 (0.06%), DAX: 6299.73 (0.45%), FTSE: 5291.55 (0.45%).
- Asia-Pacific: Australia: 4073.60 (0.67%), China: 2348.08 (0.16%), Hong Kong: 18922.32 (-0.16%), India: 4906.05 (0.30%), Japan: 8633.89 (0.26%).
- Metals: Gold: 1588.10 (-0.24%), Silver: 28.22 (-1.71%), Copper: 3.48 (0.42%)
- Energy: Crude Oil: 91.72 (0.26%), Natural Gas: 2.74 (-2.76%)
- Commodities: Corn: 6.36 (1.97%), Soya Bean: 12.98 (-1.25%), Wheat: 6.93 (5.87%)
- Currency: EUR/USD: 1.2733 (-0.38%), GBP/USD: 1.5787 (-0.20%), USD/JPY: 79.3100 (0.37%)
- 10 year US Treasury: 1.726% (0.003)
Financial and Economic News Update
U.S. stock-index futures edge higher: U.S. stock index futures are pointing to a higher open on Monday but Facebook, Inc. (NASDAQ:FB), following a sloppy debut on Friday, turned lower in early morning trade. The Dow Jones industrial average, the S&P 500 and the NASDAQ futures were all trading close to half a percent higher.
European markets trading in the green: European markets rebounded from five-months lows and are up in trade today, with the German DAX (INDEXDB:DAX) trading 0.5 percent higher at 6299.73, the FTSE 100 (INDEXFTSE:UKX) up 0.4 percent at 5291.55, and the CAC 40 (INDEXEURO:PX1) trading 0.06 percent higher at 3009.93. The euro zone blue-chip ESTX 50 PR.EUR (INDEXSTOXX:SX5E) (Euro Stoxx 50) was trading 0.3 percent lower.
Asian markets end marginally higher: After witnessing heavy losses last week, Asian markets closed higher on Monday, with Japan’s NIKKEI 225 (INDEXNIKKEI:NI225) up 0.3 percent to 8,633.89. The HANG SENG INDEX (INDEXHANGSENG:HSI) ended down 0.16 percent at 18,922.32, while the SSE Composite Index (SHA:000001) (Shanghai Composite Index) ended up 0.16 percent at finished at 2,348.3 points. The S&P/ASX 200 (INDEXASX:XJO) index rose 0.7 percent to 4,073.6. The benchmark Indian 30-share BSE SENSITIVE (INDEXBOM:SENSEX) index rose 0.2 percent to finish at 16,183.26 points.
Company News Update
- After closing 0.7 percent higher on market debut, Facebook Inc (NASDAQ:FB) has slipped below its initial public offer price of $38 in pre-market trading, down 4.2 percent at $36.67.
- China’s largest e-commerce provider Alibaba Group has entered into an agreement to repurchase half of Yahoo! Inc. (NASDAQ:YHOO)‘s 40 percent stake in the company for at least $7.1 billion. Yahoo would get $6.3 billion in cash and around $800 million in newly issued Alibaba preferred stock, and plans to hand most of the sale proceeds to its shareholders.
- DaVita Inc. (NYSE:DVA), the biggest US operator of dialysis clinics, in which Warren Buffett’s Berkshire Hathaway Inc. (NYSE:BRK.A) is the biggest share-holder, has agreed to buy the doctor network operator HealthCare Partners for about $4.42 billion in cash and stock.
- Home improvement retailer Lowe’s Companies, Inc. (NYSE:LOW) posted first quarter earnings excluding certain items of 44 cents a share, two cents above estimates, but reduced its full-year profit forecast. The stock plunged 6 percent in early morning trade.
- Campbell Soup Company (NYSE:CPB) reported third quarter earnings excluding items of 56 cents a share, topping the 52 cents a share average analysts’ estimate, and stood by its full-year forecast.
- Krispy Kreme Doughnuts (NYSE:KKD) reported first quarter adjusted earnings of 14 cents a share that easily beat the 8 cents a share that analysts were expecting, while revenue stood at $108.5 million, trailing street estimates. The stock was up 4 percent in pre-market trading.
- The Walt Disney Company (NYSE:DIS)’s “The Avengers” raked in $55.1 million over the weekend in North American ticket sales to hold the number one spot for the third straight weekend.
- Defense contractor Northrop Grumman Corporation (NYSE:NOC) has been awarded a $1.7 billion dollar NATO order for five Global Hawk drones and transportable ground stations.
- BB&T Capital has downgraded Best Buy Co., Inc. (NYSE:BBY) to “hold” from “buy.”
- Diversified industrial manufacturer Eaton Corporation (NYSE:ETN) will buy electrical equipment supplier Cooper Industries plc (NYSE:CBE) for $11.8 billion.
- British bank Barclays PLC (ADR) (NYSE:BCS) is planning to sell its entire 19.6 percent stake in US asset management firm BlackRock, Inc. (NYSE:BLK) for $6.1 billion. Barclays acquired the stake three years ago, when it sold Barclays Global Investors to BlackRock for about $15.2 billion.
- Man Group Plc (LON:EMG), the world’s largest publicly traded hedge fund, has agreed to acquire Jersey-based Financial Risk Management Holdings, a fund of hedge funds, with assets under management of approximately $8 billion. The acquisition will see group assets rise to over $67 billion.
- Ryanair Holdings plc (ADR) (NASDAQ:RYAAY), Europe’s biggest discount airline, reported full-year net profit of 503 million euros ($643million), up 25 percent from a year earlier, while revenue increased 19 percent to 4.3 billion euros. The Dublin-based carrier however warned profits in the current financial year could be lower because of a slowing European economy and higher fuel prices.
- Germany’s largest cable network operator Kabel Deutschland Holding AG (FRA:KD8) has agreed to buy east German-focused peer Tele Columbus Group for 603 million euros ($770 million) including debt, in a sign of consolidation in the domestic cable-television market.
- Bankia, Spain’s biggest domestic lender is reportedly planning to seek an aid of more than 10 million euros from the government-backed Fund for Orderly Bank Restructuring.
- Italian lender Banco Popolare Societa Cooperativa (BIT:BP) was raised to “buy” from “neutral” at BofA Merrill.
- One of China’s largest theatre owners, Wanda Group, has agreed to acquire U.S. movie theater chain AMC Entertainment for $2.6 billion including debt, in the biggest Chinese takeover of an American company to date.
- RBC Capital Markets said in a report that BHP Billiton Limited (ADR) (NYSE:BHP), the world’s largest mining company may start a new share buyback program. Melbourne-based BHP had completed a $10 billion buyback in June last year. The stock ended 2 percent higher in Sydney.
- Embattled Australian airline Qantas Airways Limited (ASX:QAN) will cut 500 jobs at its heavy maintenance and engineering facilities at Melbourne’s Tullamarine Airport as part of a restructuring to cut costs.
- Sydney-listed building products maker James Hardie Industries SE (ASX:JHX) posted a 20 percent jump in full-year operating profit to 142.46 million Australian dollars ($140.4 million), topping analysts’ estimates of $137.7 million, and said it would buy back up to 5 percent of issued capital.
- Japanese newspaper Nikkei reported that industrial robot maker Fanuc Corp (TYO:6954) is planning to expand production capacity for numerical control equipment by 30 percent by the end of fiscal 2012. Numerical control equipments are a high profit margin segment for the company, and its stock ended 1.5 percent higher on the back of the news.
Economic Calendar for Monday, May 21, 2012:
08:30 A.M. ET: Chicago Fed National Activity Index (April)
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