Every morning we put out a news report with the latest news in global stock markets, company news, and global economic news. Today’s biggest names to watch are PFE, JPM, HD, AVP, MM, DKS, and ALZ. Further details below.
Morning Market Update
Has including ESG become a necessity for investors?
ESG (environmental, social, governance) has become a hot topic in recent years, especially lately with the debate over whether pension funds should be able to factor in ESG when choosing investments. At Morningstar's recent conference, the firm argued that ESG has become a requirement for long-term investors. Q2 2020 hedge fund letters, conferences and more Read More
- US: Dow Futures: 12706.00 (0.40%), S&P 500 Futures: 1343.50 (0.70%), NASDAQ Futures: 2607.50 (0.87%)
- Europe: CAC: 3069.97 (0.39%), DAX: 6461.51 (0.15%), FTSE: 5455.97 (-0.18%).
- Asia-Pacific: Australia: 4266.30 (-0.71%), China: 2374.84 (-0.25%), Hong Kong: 19894.31 (0.80%), India: 4942.80 (0.71%), Japan: 8900.74 (-0.82%).
- Metals: Gold: 1616.10 (0.01%), Silver: 28.34 (-0.03%), Copper: 3.54 (-0.35%)
- Energy: Crude Oil: 95.15 (0.39%), Natural Gas: 2.52 (0.40%)
- Commodities: Corn: 5.88 (0.01%), Soya Bean: 13.09 (-1.86%), Wheat: 6.06 (0.33%)
- Currency: EUR/USD: 1.2802 (-0.16%), GBP/USD: 1.6031 (-0.38%), USD/JPY: 80.0400 (0.24%)
- 10 year US Treasury: 1.795% (0.031)
Financial and Economic News Update
U.S. stock-index futures climb: U.S. stock index futures are pointing to a higher open on Tuesday as data on domestic retail sales and consumer prices met forecasts, following a better than expected economic growth in Germany. The Dow Jones industrial average, the S&P 500 and the NASDAQ futures were all trading about 0.5 percent higher.
U.S. retail sales edge higher, inflation unchanged: Retail sales edged up 0.1 percent in April, the slowest pace of the year, following the 0.7 percent increase in March, the Commerce Department said today. Economists were expecting retail sales to gain 0.2 percent last month. The Labor Department said the Consumer Price Index was unchanged last month after rising 0.3 percent in March.
European markets fluctuate: European markets are fluctuating in trade today, with the German DAX (INDEXDB:DAX) trading 0.2 percent higher at 6461.51, the FTSE 100 (INDEXFTSE:UKX) down 0.2 percent at 5455.97, and the CAC 40 (INDEXEURO:PX1) gaining 0.4 percent to 3069.97. The euro zone blue-chip ESTX 50 PR.EUR (INDEXSTOXX:SX5E) (Euro Stoxx 50) was trading 0.24 percent higher.
German economy grows more than forecast: The German economy expanded more than forecast in the first quarter amid a surge in net exports, which helped other European countries to avoid recession. Gross domestic product in Europe’s largest economy, rose by 0.5 percent from the previous quarter, the Federal Statistics Office said today. Economists were expecting a quarterly growth of 0.1 percent.
Asian markets end mixed: Asian markets closed mixed on Tuesday, with Japan’s NIKKEI 225 (INDEXNIKKEI:NI225) falling to a three and a half month closing low, down 0.8 percent at 8,900.74. The HANG SENG INDEX (INDEXHANGSENG:HSI) ended up 0.8 percent at 19,894.3, while the SSE Composite Index (SHA:000001) (Shanghai Composite Index) was down 0.3 percent at 2,374.8 points. The S&P/ASX 200 (INDEXASX:XJO) index slid 0.7 percent to record its lowest closing since April 11. The benchmark Indian 30-share BSE SENSITIVE (INDEXBOM:SENSEX) index ended the day 0.7 percent higher at 16328.25.
Company News Update
- JPMorgan Chase & Co. (NYSE:JPM) Chief Executive Officer Jamie Dimon is set to face shareholders today, just days after announcing a $2 billion trading loss.
- Facebook, Inc. (NASDAQ:FB) raised the price range in its initial public offering from $28-$35 to $34-$38, putting the valuation of the social networking site at about $104 billion.
- The Home Depot, Inc. (NYSE:HD), the largest U.S. home-improvement retailer, reported earnings excluding some items of 65 cents a share that matched analysts’ estimates, but revenue trailed projections.
- Coty Inc. withdrew its $10.7 billion take-over bid for Avon Products, Inc. (NYSE:AVP), the world’s largest cosmetics direct seller.
- According to media reports, Pfizer Inc. (NYSE:PFE) and AstraZeneca plc (ADR) (NYSE:AZN) may also enter the race to acquire San Diego-based Amylin Pharmaceuticals, Inc. (NASDAQ:AMLN). Amylin rejected a $3.9 billion offer from Bristol-Myers Squibb in March.
- Millennial Media, Inc. (NYSE:MM), the second largest mobile advertising company, said first quarter loss widened as operating expenses doubled, but forecast second quarter revenue above analysts’ estimates
- Sporting goods retailer Dick’s Sporting Goods Inc (NYSE:DKS) posted first quarter earnings and revenue that topped analyst estimates. The company also raised its full-year earnings outlook.
- Software maker Opnet Technologies, Inc. (NASDAQ:OPNT) reported fourth quarter earnings of 21 cents a share, beating the average analysts’ estimate of 20 cents a share.
- Allianz SE (FRA:ALV), Europe’s biggest insurer, reported a 60 percent jump in first quarter net profit on lower disaster claims, and confirmed its full year operating profit target.
- French media and telecom group Vivendi SA (EPA:VIV) reported first quarter profit and revenue that beat analysts’ estimates, helped by robust growth at its music division.
- G4S plc (LON:GFS), the world’s biggest security firm, reported a 7.5 percent increase in first quarter revenue at constant exchange rate, led by demand from emerging markets, and expects profit margins to expand in the second half.
- Italy’s biggest banks, UniCredit SpA (BIT:UCG) and Intesa Sanpaolo SpA (BIT:ISP) had their credit ratings cut by Moody’s Investors Service, which cited worsening conditions in the country and the rest of Europe.
- Swiss wealth manager Julius Baer Group Ltd. said revenue earned on assets under management dropped in the first four months of the year.
- British medical devices maker Smiths Group plc (LON:SMIN) said sales and operating profit grew in the nine months to April 28 from the year-ago period, due to improved volumes and profit margins.
- International Consolidated Airlines Grp (LON:IAG), owner of British Airways Plc, was cut to “neutral” from “overweight” at JPMorgan & Chase Co.
- Japan’s top three banks reported a rise in annual profits. Mitsubishi UFJ Financial Group Inc (ADR) (NYSE:MTU), the country’s largest bank by assets and market capital, said net profit surged 68 percent, while Mizuho Financial Group Inc. (ADR) (NYSE:MFG), the second-largest lender by assets, reported a 17 percent gain in net profit to 484.52 billion yen ($6.1 billion). Sumitomo Mitsui Financial Grp, Inc. (ADR) (NYSE:SMFG) reported a 9 percent rise in net profit in fiscal 2011 due to lower credit costs and an increase in commissions related to overseas loans.
- Japan’s two biggest makers of televisions, Sony Corporation (ADR) (NYSE:SNE)) and Panasonic Corporation (ADR) (NYSE:PC), are in talks over a possible collaboration to develop the technology to mass produce next-generation OLED televisions.
- China Vanke Co., Ltd. (SHE:200002), the country’s biggest publicly traded developer, has bought a 74 percent stake in Hong Kong-listed Winsor Properties Holdings Limited (HKG:1036) for HK$1.08 billion (US$139 million).
- Australian apparel maker Pacific Brands Limited (ASX:PBG) said a takeover bid for the company was unlikely in the near future, after talks with various parties including U.S. buyout firm KKR & Co. L.P. (NYSE:KKR) ended without an offer being made.
- Australian energy infrastructure investment firm Hastings Diversified Utilities Fund (ASX:HDF) received a new 1.25 billion Australian dollars (US$1.25 billion) takeover offer from a consortium including a Canadian fund manager that trumped a $1 billion bid from rival APA Group (ASX:APA).
Economic Calendar for Tuesday, May 15, 2012:
07:45 A.M. ET: ICSC-Goldman Store Sales (Week ending Saturday, May 12, 2012)
08:30 A.M. ET: Retail Sales (April)
08:30 A.M. ET: Retail Sales ex-auto (April)
08:30 A.M. ET: Consumer Price Index (April)
08:30 A.M. ET: Core Consumer Price Index (April)
08:30 A.M. ET: Empire State Manufacturing Survey (May)
08:55 A.M. ET: Redbook (Week ending Saturday, May 12, 2012)
09:00 A.M. ET: Treasury International Capital (March)
09:30 A.M. ET: Federal Reserve Governor Elizabeth Duke speaks.
10:00 A.M. ET: Business Inventories (March)
10:00 A.M. ET: NAHB Housing Market Index (May)
11:30 A.M. ET: 4-Week Bill Auction