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: 12763.00 (-0.55%), S&P 500 Futures: 1347.20 (-0.77%), NASDAQ Futures: 2603.00 (-0.60%)
- Europe: CAC: 3080.76 (-1.60%), DAX: 6470.37 (-0.74%), FTSE: 5506.77 (-0.68%).
- Asia-Pacific: Australia: 4285.10 (-0.24%), China: 2394.98 (-0.64%), Hong Kong: 19964.63 (-1.32%), India: 4928.90 (-0.74%), Japan: 8953.31 (-0.63%).
- Metals: Gold: 1583.10 (-0.78%), Silver: 28.60 (-1.96%), Copper: 3.63 (-1.65%)
- Energy: Crude Oil: 95.81 (-1.31%), Natural Gas: 2.49 (0.12%)
- Commodities: Corn: 5.85 (-2.97%), Soya Bean: 13.44 (2.33%), Wheat: 5.96 (-0.58%)
- Currency: EUR/USD: 1.2926 (-0.09%), GBP/USD: 1.6075 (-0.43%), USD/JPY: 79.7900 (-0.06%)
- 10 year US Treasury: 1.843% (-0.026)
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 as JPMorgan Chase & Co. (NYSE:JPM) suffered a shock trading loss. The Dow Jones industrial average, the S&P 500 and the NASDAQ futures were all trading more than half a percent lower.
U.S. producer prices fall: Labor Department figures showed U.S. producer prices unexpectedly fell in April. The seasonally adjusted producer price index dropped 0.2 percent last month, the first drop of the year. Economists were expecting it to remain flat.
European markets fall: European markets are trading lower with the German DAX (INDEXDB:DAX) trading 0.7 percent lower at6470.37 , the FTSE 100 (INDEXFTSE:UKX) down 0.7 percent at 5506.77, and the CAC 40 (INDEXEURO:PX1) slumping 1.60 percent to 3080.76. The euro zone blue-chip ESTX 50 PR.EUR (INDEXSTOXX:SX5E) (Euro Stoxx 50) was trading 1.5 percent lower.
Asian markets end lower: Asian markets closed lower on Friday as weak economic data from China raised growth concerns. Japan’s NIKKEI 225 (INDEXNIKKEI:NI225) fell below 9,000 mark, down 0.6 percent. The HANG SENG INDEX (INDEXHANGSENG:HSI) closed down 1.3 percent at 19,964.63, while the SSE Composite Index (SHA:000001) (Shanghai Composite Index) closed at 2,395.0 points. The S&P/ASX 200 (INDEXASX:XJO) index ended down 10.5 points at 4,285.1. The benchmark Indian 30-share BSE SENSITIVE (INDEXBOM:SENSEX) index fell 0.2 percent.
Company News Update
- JPMorgan Chase & Co. (NYSE:JPM) suffered a shock $2 billion trading loss after a failed hedging strategy, prompting investors to cut exposure global banking stocks. JPMorgan plunged 8.5 percent in early morning trade.
- Deutsche Bank AG (USA) (NYSE:DB) has agreed to pay more than $200 million to settle civil fraud charges brought by the federal government over reckless mortgage lending practices.
- According to a Reuters report, AT&T Inc. (NYSE:T) has held talks to acquire smaller rival Leap Wireless International, Inc. (NASDAQ:LEAP) in recent months.
- Upscale department stores operator Nordstrom, Inc. (NYSE:JWN) reported first quarter profit below Wall Street’s expectations, as spent more to develop its e-commerce business.
- Auction house Sothebys (NYSE:BID) posted a first quarter net loss of $10.7 million or 16 cents per share, in line with analysts estimates, but total revenue fell 12 percent from the year ago period to $105 million.
- Arena Pharmaceuticals, Inc. (NASDAQ:ARNA)’s weight-loss drug lorcaserin received approval from the Food and Drug Administration, almost two years after regulators rejected them as too risky.
- Arkansas-based department store chain Dillard’s, Inc. (NYSE:DDS) reported first-quarter earnings excluding some items of $1.90 a share, topping analysts’ estimates.
- Medical diagnostics equipment maker Alere Inc (NYSE:ALR) received a subpoena from the Department of Health and Human Services related to quality testing and performance characteristics on its Alere Triage products.
- Texas-based Darling International Inc. (NYSE:DAR), the only publicly traded rendering company, reported first-quarter earnings excluding some items of 24 cents a share, trailing the average analyst estimate of 29 cents a share.
- American Public Education, Inc. (NASDAQ:APEI) reported first quarter net income of 50 cents a share, topping estimates, but forecast second quarter profit that fell short of the average analyst estimate by 4 cents.
- Spain’s biggest telecom company, Telefonica S.A. (ADR) (NYSE:TEF), reported first quarter profit that missed analyst estimates, despite a strong contribution from its Latin American operations, which could not offset weakness in its home market.
- Credit Agricole SA (EPA:ACA), France’s third largest bank by market value, reported a worse than expected 75 percent drop in first quarter net profit to 252 million euros ($325.0 million), hit by its exposure to the Greek debt crisis.
- Airline holding firm, International Consolidated Airlines Grp (LON:IAG), formed by the merger of British Airways Plc and Spanish carrier Iberia Airlines, said its first quarter loss widened as soaring fuel costs hurt margins.
- Enel S.p.A (BIT:ENEL), Italy’s biggest utility, reported a small decline in first quarter profit, as the euro zone debt crisis dampened demand for electricity in Italy and Spain.
- German health care company Fresenius SE & Co KGaA (FRA:FRE)’s management board resolved to issue 13.8 million new ordinary shares with a total value of around 1 billion euros to institutional investors to help finance the planned acquisition of hospital manager Rhoen-Klinikum AG (RHK).
- Bank of America Merrill Lynch upgraded British retailers Marks & Spencer Group Plc (LON:MKS) and Debenhams Plc (LON:DEB) to “buy” from “neutral”, saying they should directly benefit from a strong summer of events that includes the London Olympics.
- Panasonic Corporation (ADR) (NYSE:PC), Japan’s biggest appliance maker, reported a ten-fold increase in fiscal fourth quarter net loss to 438 billion yen ($5 billion), and forecast a profit this year that missed analyst estimates, as demand for its for plasma TV screens drops.
- Toyota Motor Corporation (ADR) (NYSE:TM) has reclaimed the title of world’s largest carmaker, edging past General Motors Company (NYSE:GM), to sell the most cars and trucks in the world in the first three months of the year, Bloomberg News reported.
- Nissan Motor Co., Ltd. (TYO:7201), Japan’s second biggest automaker, said operating profit rose 33 percent to 118.1 billion yen ($1.48 billion) in the January to March quarter, topping analysts’ estimates, as the carmaker achieved record sales.
- Tokyo-based camera maker Nikon Corporation (TYO:7731) reported a 117 percent jump in fiscal 2011 net profit, and forecast full year net profit of 65 billion yen, that beat analysts’ estimates.
- State-owned China Petroleum & Chemical Corp. (ADR) (NYSE:SNP) launched a $3 billion, three-tranche bond offering, its first dollar denominated bond sale in more than fifteen years.
- China’s Yanzhou Coal Mining Co. (ADR) (NYSE:YZC) is in talks to buy Vale (ADR) (NYSE:VALE)’s stake in the Integra coal mine in New South Wales for more than 500 million Australian dollars ($503 million). Yanzhou is also planning to spin off and list its Australian unit Yancoal Australia.
Economic Calendar for Friday, May 11, 2012:
08:30 A.M. ET: Producer Price Index (YoY) (April)
08:30 A.M. ET: Producer Price Index (MoM) (April)
08:30 A.M. ET: Producer Price Index ex Food & Energy (YoY) (April)
08:30 A.M. ET: Producer Price Index ex Food & Energy (MoM) (April)
09:15 A.M. ET: Dallas Federal Reserve Bank President Richard Fisher speaks.
09:55 A.M. ET: Reuters/Michigan Consumer Sentiment Index (May)