ValueWalk's Raul Panganiban David Barse, Founder and CEO of XOUT Capital, and discuss his unique approach to investing. Q1 2021 hedge fund letters, conferences and more The following is a computer generated transcript and may contain some errors. Interview with XOUT Capital's David Barse
- US: Dow Futures: 12795.00 (-0.56%), S&P 500 Futures: 1346.50 (-0.88%), NASDAQ Futures: 2604.25 (-0.71%)
- Europe: CAC: 3095.57 (-0.94%), DAX: 6420.78 (-0.37%), FTSE: 5495.21 (-1.08%).
- Asia-Pacific: Australia: 4275.10 (-0.91%), China: 2408.59 (-1.67%), Hong Kong: 20330.64 (-0.76%), India: 4974.80 (-0.50%), Japan: 9045.06 (-1.51%).
- Metals: Gold: 1583.70 (-1.30%), Silver: 28.66 (-2.70%), Copper: 3.61 (-1.75%)
- Energy: Crude Oil: 95.85 (-1.20%), Natural Gas: 2.42 (1.25%)
- Commodities: Corn: 6.19 (0.32%), Soya Bean: 13.28 (-0.93%), Wheat: 6.11 (-0.29%)
- Currency: EUR/USD: 1.2938 (-0.52%), GBP/USD: 1.6078 (-0.50%), USD/JPY: 79.5800 (-0.36%)
- 10 year US Treasury: 1.802% (-0.042)
Financial and Economic News Update
U.S. stock-index futures trading lower: U.S. stock index futures are pointing to a lower open on Wednesday as investors continued to remain on edge over political uncertainty in Europe. The Dow Jones industrial average, the S&P 500 and the NASDAQ futures were all trading more than half a percent lower.
Mortgage applications rose last week: The Mortgage Bankers Association said the number of applications for US home mortgages filed last week rose 1.7 percent from the prior week, as loan rates continued to slide.
European markets fall: European markets are trading lower amid ongoing concerns about the political turmoil in Greece. Euro zone banks slid in trading today after media reports said the Spanish government would ask the country’s lenders to make new provisions for their real estate assets. The German DAX (INDEXDB:DAX) was trading 0.4 percent lower at 6420.78, the FTSE 100 (INDEXFTSE:UKX) was down 1.1 percent at 5495.21, and the CAC 40 (INDEXEURO:PX1) slumped 0.9 percent to 3095.57. The euro zone blue-chip ESTX 50 PR.EUR (INDEXSTOXX:SX5E) (Euro Stoxx 50) was trading 1.2 percent lower.
Asian markets end lower: Asian markets closed lower on Wednesday following failed coalition talks in Greece, raising the risk of the unravelling of its hard-won bailout deal. Japan’s NIKKEI 225 (INDEXNIKKEI:NI225) slumped to a fresh three-month closing low, down 1.5 percent. The HANG SENG INDEX (INDEXHANGSENG:HSI) was down 0.8 percent to 20330.64, while the SSE Composite Index (SHA:000001) (Shanghai Composite Index) fell 1.7 percent to 2408.59.. The S&P/ASX 200 (INDEXASX:XJO) index hit a four-week low, closing down 0.9 percent to 4275.1.. The benchmark Indian 30-share BSE SENSITIVE (INDEXBOM:SENSEX) index fell 0.38 percent to 16,482.49 points.
Company News Update
- AOL, Inc. (NYSE:AOL) reported a surge in first quarter net income as online-advertising revenue increased. AOL reported a net of $21.1 million, or 22 cents a share, on revenues of $529.4 million that topped street estimates.
- U.S. dairy company Dean Foods Company (NYSE:DF) reported first quarter adjusted earnings of 31 cents per share, better than the analyst estimate of 21 cents per share.
- Macy’s, Inc. (NYSE:M) reported first quarter profit of $181 million, or 43 cents a share, up 38 percent from $131 million, or 30 cents a share, in the year-ago period. Analysts were expecting Macy’s to earn 40 cents a share.
- Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR) has removed founder Robert P. Stiller from his position as chairman after finding that one of Stiller’s stock sales last week to satisfy a margin call violated company policy on internal trading.
- Internet content specialist Demand Media Inc (NYSE:DMD) reported fiscal first quarter earnings of 7 cents per share, two cents above estimates. Revenue beat consensus and the company also raised its forecast for the year.
- Latin American online-auction site MercadoLibre Inc (NASDAQ:MELI) posted first quarter net earnings of $19.6 million, or 45 cents a share, on revenue of $83.7 million that fell short of the average analyst estimate.
- STEC, Inc. (NASDAQ:STEC), the maker of flash-memory drives forecast a second-quarter loss of 26 cents to 28 cents a share, wider than the 13 cents a share loss projected by analysts on average.
- XL Group plc (NYSE:XL) reported first quarter operating earnings of 52 cents a share that topped the average analyst estimate of 40 cents a share.
- Natural gas and oil producer EOG Resources, Inc. (NYSE:EOG) reported first quarter earnings $1.17 per share, one cent above estimates, on higher output of oil and natural gas liquids, as well as higher oil prices.
- Allianz SE (ADR) (NYSE:AZSEY), Europe’s biggest insurer, said that, based on preliminary figures, first quarter net profit soared 60 percent to 1.4 billion Euros ($1.82 billion), topping the average analysts’ estimate of 1.273 billion.
- Commerzbank AG (FRA:CBK), Germany’s second biggest lender, said first quarter net profit plunged 63 percent to 369 million euros ($479 million), falling short of the 416 million euros that analysts were expecting.
- Dutch financial services company ING Groep N.V. (ADR) (NYSE:ING) posted first quarter profit excluding one time items of 705 million euros ($915 million) that exceeded estimates, amid lower than expected loan losses.
- InterContinental Hotels Group PLC (ADR) (NYSE:IHG), the world’s largest provider of hotel rooms, reported a 5.4 percent rise in first quarter operating profits to $118 million, compared with consensus estimates of $116 million.
- GlaxoSmithKline plc (ADR) (NYSE:GSK) has tabled a $2.6 billion hostile offer to take over US drug maker Human Genome Sciences (NASDAQ:HGSI). The British drug maker said it is offering $13 cash per share for Human Genome.
- Toyota Motor Corporation (ADR) (NYSE:TM), Asia’s biggest carmaker, recorded a net profit of 121.0 billion yen ($1.51 billion) in the three months ended March, compared with analysts’ estimates for 140.1 billion yen. The company expects net profit to more than double to 760 billion yen ($9.5 billion) in the 12 months ending March 2013, led by strong demand in emerging markets.
- Japanese business daily Nikkei said that Panasonic Corporation (ADR) (NYSE:PC) may post a 50 billion yen ($626 million) profit in the fiscal year ending March 2013, which would be well above an estimated net loss of 780 billion yen.
- Japanese telecoms operator Softbank Corp (TYO:9984) and eBay Inc (NASDAQ:EBAY) unit PayPal will form a joint venture to launch a digital payments service in Japan. Softbank and PayPal will each invest 1 billion yen ($12.54 million) in the new 50-50 joint venture, PayPal Japan.
- Goldman Sachs Group, Inc. (NYSE:GS) has upgraded Hong Kong-based property developer Swire Properties Limited (HKG:1972) to “buy” and added the stock to its conviction list. In a report published today, analysts at Goldman said Swire should be a major beneficiary of the booming luxury residential and commercial property market in Hong Kong.
- Singapore-listed Chinese shipbuilder Cosco Corp Singapore Ltd reported a 25 percent drop in first quarter net profit to S$27.8 million, mainly due to the weak performance of its dry bulk shipping and shipyard operations.
Economic Calendar for Wednesday, May 09, 2012:
07:00 A.M. ET: MBA Purchase Applications (Week ending Friday, May 04, 2012)
10:00 A.M. ET: Wholesale Inventories (March)
10:00 A.M. ET: Minneapolis Federal Reserve President Narayana Kocherlakota speaks.
10:30 A.M. ET: EIA Petroleum Status Report (Week ending Friday, May 04, 2012)
10:45 A.M. ET: Cleveland Federal Reserve Bank President Sandra Pianalto speaks.
12:00 P.M. ET: Philadelphia Federal Reserve Bank Pres. Charles Plosser speaks.
01:00 P.M. ET: 10-Yr Note Auction