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: 12641.00 (0.29%), S&P 500 Futures: 1334.00 (0.44%), NASDAQ Futures: 2589.00 (0.42%)
- Europe: CAC: 3068.17 (0.94%), DAX: 6414.42 (0.21%), FTSE: 5432.74 (-0.09%).
- Asia-Pacific: Australia: 4165.50 (-2.36%), China: 2346.19 (-1.22%), Hong Kong: 19259.83 (-3.29%), India: 4858.25 (-1.71%), Japan: 8801.17 (-1.12%).
- Metals: Gold: 1541.00 (-1.03%), Silver: 27.52 (-2.99%), Copper: 3.48 (-1.15%)
- Energy: Crude Oil: 92.87 (-1.18%), Natural Gas: 2.61 (1.79%)
- Commodities: Corn: 5.94 (2.58%), Soya Bean: 12.91 (0.85%), Wheat: 6.08 (1.50%)
- Currency: EUR/USD: 1.2746 (-0.07%), GBP/USD: 1.5938 (0.39%), USD/JPY: 80.4550 (0.27%)
- 10 year US Treasury: 1.810% (0.045)
Financial and Economic News Update
U.S. stock-index futures climb: U.S. stock index futures are pointing to a higher open on Wednesday as housing starts rose higher than expected at 2.6 percent in April. The Dow Jones industrial average, the S&P 500 and the NASDAQ futures were all trading firmly in the green.
European markets mixed: European markets were mixed in trade today, with the German DAX (INDEXDB:DAX) trading 0.2 percent higher at 6414.42, the FTSE 100 (INDEXFTSE:UKX) down 0.1 percent at 5432.74, and the CAC 40 (INDEXEURO:PX1) was up close to a percent at 3068.17. The euro zone blue-chip ESTX 50 PR.EUR (INDEXSTOXX:SX5E) (Euro Stoxx 50) was trading 0.53 percent higher.
Asian markets end lower: Asian markets lower on Wednesday, with Japan’s NIKKEI 225 (INDEXNIKKEI:NI225) falling 1.1 percent at to 8,801.17. The HANG SENG INDEX (INDEXHANGSENG:HIS) closed down 3.19 percent at 19,259.83, while the SSE Composite Index (SHA:000001) (Shanghai Composite Index) ended 1.2 percent lower at 2,346.2 points. The S&P/ASX 200 (INDEXASX:XJO) index slid 2.4 percent to 4,165.5. The benchmark Indian 30-share BSE SENSITIVE (INDEXBOM:SENSEX) index fell 1.81 percent to 16,032.48 points.
Company News Update
- Target Corporation (NYSE:TGT), the second-largest U.S. discount retailer, posted first quarter adjusted earnings of $1.11 a share, topping analysts’ estimates of earnings of $1.01 a share. Total revenues stood at $16.87 billion, which also beat street expectations.
- Deere & Company (NYSE:DE), the world’s largest maker of agricultural equipment, reported fiscal second quarter profit that beat analysts’ estimates, and raised its full-year earnings forecast.
- General Electric Company (NYSE:GE) has agreed to acquire Australian mining-equipment maker Industrea Limited for about 700 million Australian dollars ($696.6 million), in an effort to increase its presence in the booming resources sector.
- · Teen-apparel retailer Abercrombie & Fitch Co. (NYSE:ANF) reported first quarter profit of $3.0 million or 3 cents per share, beating analysts’ estimates, but revenue trailed expectations.
- Office supply company Staples, Inc. (NASDAQ:SPLS) reported 6 percent drop in first quarter net income to $187 million, but reiterated its full-year forecast.
- Cisco Systems, Inc. (NASDAQ:CSCO), the largest maker of equipment for computer networks, was upgraded to “overweight” from “equal weight” at Barclays Capital.
- Luggage maker Tumi Holdings Inc. (NYSE:TUMI) reported first quarter net income of $2.9 million or 6 cents a share, compared with a net loss of $0.1 million in the same quarter last year. Sales rose 21 percent to $80 million, in line expectations.
- French oil major Total S.A. (ADR) (NYSE:TOT) said that the gas leak at its North Sea Elgin platform, first reported on March 25, has been stopped after a twelve hour operation to pump heavy mud into the leaking well.
- Deutsche Lufthansa AG (FRA:LHA) is considering a bid for state-owned Portuguese carrier Transportes Aereos Portugueses SGPS SA, a leading European provider of flights to Brazil, as part of its efforts to strengthen its position in South America.
- EADS NV (EPA:EAD) said first quarter operating profit excluding one time items doubled to 480 million euros, and revenue increased 16 percent to 11.4 billion, beating analysts’ estimates, despite a hefty 158 million euros ($203 million) charge related to wing cracks on the A380 super jumbo.
- Banco Espirito Santo SA (ELI:BES), Portugal’s biggest publicly traded bank, reported a bigger than expected 84 percent slide in first quarter net profit to 11.6 million euros ($14.82 million), amid an economic slowdown in its domestic market.
- Compagnie Financiere Richemont SA, the second-biggest luxury goods company, reported full year profit of 1.54 billion euros, beating analysts’ estimates.
- Societe Generale SA (EPA:GLE) upgraded Credit Agricole SA (EPA:ACA) to “buy” from “sell” with a price target of 4 euros.
- China Mobile Ltd. (ADR) (NYSE:CHL), the world’s biggest telecom carrier by subscribers, and the only Chinese operator to not carry the iPhone, is in talks with Apple Inc. (NASDAQ:AAPL) to negotiate a deal for the iPhone.
- Australia and New Zealand Banking Group (ASX:ANZ), Australia’s third-largest lender, is planning to invest an additional 300 million Australian dollars ($300 million) to expand its operations in China, the world’s fastest growing major economy.
- Taiwan-based HTC Corp (TPE:2498), Asia’s second-largest smart phone maker, said shipments to the U.S. were being held up by U.S. customs officials because of an exclusion order by the U.S. International Trade Commission.
- Jacques Nasser, Chairman of BHP Billiton Limited (ADR) (NYSE:BHP), the world’s biggest miner, expects commodity markets to ease further.
- Singapore-based agricultural commodities supplier Olam International Ltd. said third quarter profit fell 22.5 percent from a year earlier because of slowing demand.
- Toronto-listed coal miner, SouthGobi Resources Ltd (TSE:SGQ) (HKG:1878), which has significant operations in Mongolia, reported a first quarter net income of $3.1 million, or 2 cents a share, with revenue almost doubling to $40.2 million from $20.2 million in the year ago period.
- Australia’s top transport company Toll Holdings Limited (ASX:TOL) warned its earnings would fall this year due to a weakness in the retail sector.
Economic Calendar for Wednesday, May 16, 2012:
07:00 A.M. ET: MBA Purchase Applications (Week ending Friday, May 11, 2012)
08:30 A.M. ET: Housing Starts (April)
08:30 A.M. ET: Building Permits (April)
09:15 A.M. ET: Industrial Production (April)
09:15 A.M. ET: Capacity Utilization (April)
10:30 A.M. ET: EIA Petroleum Status Report (Week ending Friday, May 11, 2012)
12:30 P.M. ET: St. Louis Federal Reserve Bank President James Bullard speaks.
02:00 P.M. ET: FOMC Minutes