Morning Market Update
Michael Zimmerman’s Prentice Capital is having a strong year
Prentice Capital was up 15.3% net last month, bringing its year-to-date gain to 49.4% net. Prentice touted its ability to preserve capital during market downturns like the first quarter of this year and the fourth quarter of 2018. Q3 2020 hedge fund letters, conferences and more Background of Prentice Capital The fund utilizes a low Read More
* US: Dow Futures: 12348.00 (0.31%), S&P 500 Futures: 1304.00 (0.28%), NASDAQ Futures: 2517.75 (0.31%)
* Europe: CAC: 3058.37 (0.51%), DAX: 6185.76 (0.72%), FTSE: 5458.91 (0.49%).
* Asia-Pacific: Australia: 4072.90 (0.23%), China: 2289.79 (-0.70%), Hong Kong: 18872.56 (-0.43%), India: 5115.90 (1.22%), Japan: 8536.72 (-1.03%).
* Metals: Gold: 1592.00 (-0.30%), Silver: 28.50 (-0.41%), Copper: 3.34 (-0.04%)
* Energy: Crude Oil: 82.66 (-0.05%), Natural Gas: 2.22 (-0.09%)
* Commodities: Corn: 5.86 (-0.96%), Soya Bean: 13.35 (-0.30%), Wheat: 6.25 (0.20%)
* Currency: EUR/USD: 1.2509 (0.22%), GBP/USD: 1.5547 (0.40%), USD/JPY: 79.5500 (0.14%)
* 10 year US Treasury: 1.647% (0.059)
Financial and Economic News Update
U.S. stock-index futures gain: U.S. stock index futures are pointing to a higher open on Tuesday, even though investors are cautious amid the rising bond yields in Spain and Italy. The Dow Jones industrial average, the S&P 500 and the NASDAQ futures were all trading around 0.3 percent higher.
European markets in the green: European markets are up in trade today, with the German DAX (INDEXDB:DAX) trading 0.7 percent higher at 6185.76, the FTSE 100 (INDEXFTSE:UKX) up 0.5 percent at 5458.91, and the CAC 40 (INDEXEURO:PX1) gaining 0.5 percent to 3058.37. The euro zone blue-chip ESTX 50 PR.EUR (INDEXSTOXX:SX5E) (Euro Stoxx 50) was trading 0.7 percent higher.
Asian markets end lower: Asian markets closed lower on Tuesday, with Japan’s NIKKEI 225 (INDEXNIKKEI:NI225)closing down 1 percent at 8,536.72. The HANG SENG INDEX (INDEXHANGSENG:HSI) ended the session down 0.4 percent, while the SSE Composite Index (SHA:000001) (Shanghai Composite Index) was down 0.7 percent at 2,289.8. The S&P/ASX 200 (INDEXASX:XJO) index was up 0.2 percent at 4,072.9. The benchmark Indian 30-share BSE SENSITIVE (INDEXBOM:SENSEX) index closed up 1.1 percent to 16,862.80 points.
Company News Update
* Fashion retailer Michael Kors Holdings Ltd (NYSE:KORS) reported fiscal fourth quarter profit, excluding certain items of $1.21 per share, five cents above estimates. It also provided first quarter earnings guidance above Street consensus.
* Financial information provider Factset Research Systems Inc. (NYSE:FDS) posted fiscal third quarter earnings, excluding certain items of $1.15 per share, 11 cents above consensus estimates. Revenue stood at $202.31 million, in line with analysts’ estimates.
* David Einhorn’s Greenlight Capital has increased its stake in hard-disk drive maker Seagate Technology PLC (NASDAQ:STX) from 3.4 percent to 5.4 percent as of June 1. The stock is up 1.5 percent in pre-market trading.
* The board of networking equipment maker Juniper Networks, Inc. (NYSE:JNPR) has approved a plan to buy back up to $1 billion in shares.
* Aircraft leasing company Air Lease Corp (NYSE:AL) is finalizing plans to purchase around hundred 737 MAX aircrafts from The Boeing Company (NYSE:BA), Reuters reported.
* Network equipment maker Finisar Corporation (NASDAQ:FNSR) reported fiscal fourth-quarter earnings in line with analysts’ expectations, but revenues fell short of estimates.
* Computer drive maker Fusion-io, Inc. (NYSE:FIO) has struck a deal to form an original equipment manufacturer relationship with networking equipment giant Cisco Systems, Inc. (NASDAQ:CSCO).
* Videogame maker Majesco Entertainment Co. (NASDAQ:COOL) reported a 30 percent increase in fiscal second quarter earnings, but lowered its full-year earnings estimates
* Chinese online game developer Shanda Games Limited (ADR) (NASDAQ:GAME) reported first-quarter adjusted earnings of 1.36 yuan or 22 cents per American Depositary Share that beat analyst expectations.
* Canadian fertilizer maker Agrium Inc. (USA) (NYSE:AGU) said that it expects its first half earnings to be at or near the top end of its previously released guidance range due to higher prices for some of its products.
* DynaVox, Inc. (NASDAQ:DVOX), the seller of speech software for people with learning disabilities, has appointed Michelle Heying, the current Chief Operating Officer, as the new Chief Executive Officer, effective immediately.
* Citigroup Inc. (NYSE:C) reiterated its buy recommendation for sporting-goods manufacturer Nike, Inc. (NYSE:NKE). The company will report fourth-quarter earnings on June 28, and Citigroup has forecast earnings of $1.39 per share.
* Morgan Stanley (NYSE:MS) has initiated coverage of equipment rental company United Rental, Inc. (NYSE:URI) with an “overweight” rating.
* Dutch digital maps provider TomTom NV (AMS:TOM2) has entered into a global agreement with Apple Inc. (NASDAQ:AAPL) to provide maps for its iPhone-navigators.
* Telefonica S.A. (ADR) (NYSE:TEF) and Royal KPN NV, who are looking at a $20 billion merger of their German businesses, could face stiff regulatory scrutiny, Bloomberg reported today.
* French drug maker Sanofi SA (ADR) (NYSE:SNY) said that its Genzyme unit is applying for both U.S. and European approval for its Lemtrada multiple sclerosis treatment.
* Lafarge S.A. (EPA:LG), the world’s largest cement maker, announced plans drive growth in sales, and cut costs by 1.30 billion euros ($1.62 billion) over the next four years.
* International Consolidated Airlines Grp (LON:IAG), the parent company of British Airways has put on hold its plans of buying more airlines amid a slump in travel demand due to the economic downturn in Europe.
* The London Stock Exchange Group Plc (LON:LSE) has hired former NASDAQ OMX Group, Inc. (NASDAQ:NDAQ) CFO, David Warren, to replace Doug Webb as chief financial officer from July 2.
* Remy Cointreau (EPA:RCO), France’s second-biggest distiller said full-year net profit jumped 57.2 percent to 110.8 million euros from 70.5 million euros recorded a year earlier, driven by strong demand for its cognacs in Asia and Latin America.
* British insurer Amlin plc (LON:AML) was raised to “buy” from “hold” at Deutsche Bank AG, citing increased profitability due to price increases and better underwriting. The stock was up 2 percent in London trading.
* Goldman Sachs Group, Inc. (NYSE:GS) has appointed Mark Schwartz, former president and Chief Executive of Soros Fund Management LLC, as its new Asia head. Schwartz will be based in Beijing.
* Troubled Australian airline Qantas Airways Limited (ASX:QAN) has hired investment bank Macquarie Group Limited (ASX:MQG) to help defend against potential hostile takeover bids, after its shares lost a third of their value last week because of a profit warning.
* China Southern Airlines Limited (ADR) (NYSE:ZNH) (HKG:1055), Asia’s biggest carrier by passengers, will receive a cash injection of up to 2 billion yuan ($314 million) from its state-owned parent, to help pare debt amid high fuel costs and rising global economic uncertainty.
* Chinese sportswear brand Li Ning Co. Ltd. (HKG:2331) has warned that profits will substantially decline this year due to higher marketing costs and a slump in revenue. The stock slumped to its lowest level since January 2006 in Hong Kong trading.
* Console giant Nintendo Co., Ltd (TYO:7974) will slash its employees’ summer bonuses by about 20 percent this year due to falling demand for Wii hardware and software, the Japanese business daily Nikkei reported.
* Australia’s largest steelmaker BlueScope Steel Limited (ASX:BSL) said that its cost-cutting efforts were well on track and offered estimates for its restructuring costs. The stock was the standout performer in Sydney, ending 9.6 percent higher.
Economic Calendar for Tuesday, June 12, 2012:
07:30 A.M. ET: NFIB Small Business Optimism Index (May)
07:45 A.M. ET: ICSC-Goldman Store Sales (Week ending Saturday, June 09, 2012)
08:30 A.M. ET: Export Price Index (MoM) (May)
08:30 A.M. ET: Import Price Index (MoM) (May)
08:30 A.M. ET: Import Price Index (YoY) (May)
08:30 A.M. ET: Export Price Index (YoY) (May)
08:55 A.M. ET: Redbook (Week ending Saturday, June 09, 2012)
10:00 A.M. ET: IBD/TIPP Economic Optimism (MoM) (June)
11:30 A.M. ET: 4-Week Bill Auction
01:00 P.M. ET: 3-Yr Note Auction
02:00 P.M. ET: Treasury Budget (May)