* US: Dow Futures: 12720.00 (1.55%), S&P 500 Futures: 1347.10 (1.87%), NASDAQ Futures: 2576.00 (1.91%)
Quant ESG With PanAgora Asset Management’s George Mussalli
ValueWalk's Raul Panganiban interviews George Mussalli, Chief Investment Officer and Head of Equity Research at PanAgora Asset Management. In this epispode, they discuss quant ESG as well as PanAgora’s unique approach to it. The following is a computer generated transcript and may contain some errors. Q3 2020 hedge fund letters, conferences and more Interview . Read More
* Europe: CAC: 3166.61 (3.63%), DAX: 6374.82 (3.53%), FTSE: 5609.58 (2.08%).
* Asia-Pacific: Australia: 4094.60 (1.23%), China: 2225.43 (1.33%), Hong Kong: 19441.46 (2.14%), India: 5278.90 (2.52%), Japan: 9006.78 (1.47%).
* Metals: Gold: 1588.10 (2.43%), Silver: 27.36 (4.26%), Copper: 3.46 (4.04%)
* Energy: Crude Oil: 80.87 (4.09%), Natural Gas: 2.78 (2.09%)
* Commodities: Corn: 6.46 (-0.39%), Soya Bean: 14.18 (-0.50%), Wheat: 7.74 (-0.52%)
* Currency: EUR/USD: 1.2685 (1.94%), GBP/USD: 1.5692 (1.11%), USD/JPY: 79.5600 (0.14%)
* 10 year US Treasury: 1.672% (0.092)
Financial and Economic News Update
U.S. stock-index futures soar: U.S. stock index futures are pointing to a sharply higher open on Friday after European leaders unexpectedly reached a deal on struggling euro zone banks. Investor optimism was further increased by a slightly higher than expected rise in U.S. personal income in May. The Dow futures, the S&P futures and the NASDAQ future are all trading more than a percent and half higher.
European markets jump higher: European markets are trading significantly higher, with the German DAX (INDEXDB:DAX) trading 3.5 percent higher at 6374.82, the FTSE 100 (INDEXFTSE:UKX) up 2.1 percent at 5609.58, and the CAC 40 (INDEXEURO:PX1) jumping 3.6 percent to 3166.61. The euro zone blue-chip ESTX 50 PR.EUR (INDEXSTOXX:SX5E) (Euro Stoxx 50) soared 4 percent.
Asian markets end higher: Asian markets closed higher on Friday, with Japan’s NIKKEI 225 (INDEXNIKKEI:NI225) rising 1.5 percent to close above the key 9,000 level mark for the first time in seven weeks. The HANG SENG INDEX (INDEXHANGSENG:HSI) closed up 2.2 percent at 19441.46, while the SSE Composite Index (SHA:000001) (Shanghai Composite Index) ended 1.4 percent higher to 2225.43 points. The S&P/ASX 200 (INDEXASX:XJO) index jumped 1.2 percent to 4,04.6. The benchmark Indian 30-share BSE SENSITIVE (INDEXBOM:SENSEX) index was the best performer in the region, ending up 2.6 percent.
Stocks in Focus
* Home builder KB Home (NYSE:KBH) reported a narrow than expected second-quarter loss narrowed of $24.1 million or 31 cents a share. Revenue increased 11 percent to $302.9 million, which also topped estimates.
* Goldman Sachs Group, Inc. (NYSE:GS) said it has eliminated several dozen positions in its U.S. operations, as it looks to cut costs amid a slowdown in capital market activity.
* Athletic apparel maker Finish Line Inc (NASDAQ:FINL) posted first quarter earnings of 24 cents a share, one cent above estimates. Revenue for the quarter stood at $319 million, in line with consensus estimates. The company has raised its full year earnings per share forecast.
* ServiceNow, the provider of cloud-based services for business, has priced its initial public offering above its expected range at $18, and is set to begin trading on the New York Stock Exchange this morning.
* Online publisher AOL, Inc. (NYSE:AOL) has promoted chief financial officer Arthur Minson to the newly created role of chief operating officer.
* GlaxoSmithkline plc (ADR) (NYSE:GSK) has extended its $2.6 billion offer to buy U.S. biotech company Human Genome Sciences (NASDAQ:HGSI) until July 20, Reuters reported.
* Electrical equipment maker AZZ Incorporated (NYSE:AZZ) posted fiscal first quarter earnings, excluding certain items, of $1.02 a share, that easily beat the average analysts’ estimate of 81 cents a share. The company also raised its full year profit and revenue guidance.
* Internet advertising company ValueClick Inc (NASDAQ:VCLK) has said that it expects second-quarter revenue to be at the high end of it’s previously forecast range of $155 million to $160 million. Revenue jumped 11 percent to $127.1 million that also topped Street expectations.
* The board of petroleum refiner HollyFrontier Corp (NYSE:HFC) has approved a new $350 million share buy-back program, bringing its total remaining authorization to about $410 million.
* Macquarie Group Limited has initiated coverage onFacebook Inc (NASDAQ:FB) with a “neutral” rating, and has set a price target of $34. Facebook was trading 1.8 percent higher in New York pre-market trading.
* Enterprise software maker Oracle Corporation (NASDAQ:ORCL) has been upgraded to “outperform” from “sector perform” at RBC Capital. The stock was up 1.5 percent.
* Saks Inc (NYSE:SKS) was lifted to “overweight” from “neutral” at JPMorgan Chase, with the target price raised to $12 from $11.
* Anheuser-Busch InBev NV (ADR) (NYSE:BUD), the maker of Budweiser and Stella Artois beers, has agreed to buy the 50 percent of Mexican brewer Grupo Modelo it does not already own, for $20.1 billion in cash.
* Royal Bank of Scotland Group plc (ADR) (NYSE:RBS) could face a hefty fine of about 150 million pounds ($232.59 million) for colluding to manipulate the financial markets, the same offence that has hammered Barclays PLC (ADR) (NYSE:BCS) this week, British daily The Times reported.
* In a surprise announcement, Credit Suisse Group AG (ADR) (NYSE:CS) said it expects to make a profit in the second quarter. Shares of Credit Suisse have slumped to a 20-year low this week, and the statement might have been aimed to restore investor confidence.
* British investment company Melrose plc (LON:MRO)has agreed to buy German utility meter manufacturer Elster Group SE ADR (NYSE:ELT) for $2.3 billion.
* Swiss biopharmaceutical company Actelion (ATLN) has received U.S. Food and Drug Administration approval for its pulmonary arterial hypertension treatment, Veletri.
* The Berkeley Group Holdings plc (LON:BKG), the U.K.’s largest homebuilder by market value, reported a better than expected 58 percent rise in full year profit, amid robust sales, at higher prices.
* French retailer Casino Guichard Perrachon SA (EPA:CO) has agreed to acquire a 50 percent stake in supermarket chain, Monoprix, from its joint venture partner, Groupe Galeries Lafayette, for 1.18 billion euros.
* British oil company Cairn Energy PLC (LON:CNE) has raised about $365 million after selling a 3.5 percent stake in its Indian unit, Cairn India Limited (NSE:CAIRN).
* Luxury car maker Bayerische Motoren Werke AG (ETR:BMW)was upgraded to “buy” from “neutral” at UBS AG. Deutsche Boerse AG (ETR:DB1), the operator of the Frankfurt stock exchange, and French media company Vivendi SA (EPA:VIV), were raised to “overweight” from “neutral” at JPMorgan Chase & Co.
* Nomura Holdings, Inc. (ADR) (NYSE:NMR), Japan’s largest brokerage, will cut pay for top executives and will temporarily halt an equity sales operation, as part of its effort to solve a damaging insider trading scandal.
* U.S. memory chip-maker Micron Technology, Inc. (NASDAQ:MU) has agreed to buy bankrupt Japanese dynamic random access memory maker, Elpida Memory Inc (TYO:6665), for an estimated 200 billion yen ($2.5 billion), the Nikkei business daily reported.
* Australia second largest department store chain David Jones Limited (ASX:DJS) has received an unsolicited 1.65 billion Australian dollars ($1.67 billion) bid from little know British private equity firm, EB Private Equity.
* Malaysia’s state oil company, Petroliam Nasional Bhd (Petronas), will buy its Canadian joint-venture partner, Progress Energy Resources Corp. (TSE:PRQ), for 4.8 billion Canadian dollars ($4.6 billion).
* The Western Australian government has delayed a decision on the environmental assessment on Woodside Petroleum Limited (ASX:WPL)’s 35 billion Australian dollars ($35 billion) Browse liquefied natural gas project.
* Suzuki Motor Corporation (TYO:7269) jumped 3.3 percent in Tokyo trading after the Nikkei newspaper reported that the company would increase its capital expenditure by over 60 percent through fiscal 2016.
* Shanghai-based Home Inns & Hotels Management Inc. (ADR) (NASDAQ:HMIN), China’s biggest budget hotel operator, is maintaining its forecast of 20 percent revenue growth in 2012.
Economic Calendar for Friday, June 29, 2012:
08:30 A.M. ET: Personal Income (MoM) (May)
08:30 A.M. ET: Personal Spending (May)
08:30 A.M. ET: Core Personal Consumption Expenditure – Price Index (MoM) (May)
08:30 A.M. ET: Core Personal Consumption Expenditure – Prices Index (YoY) (May)
08:30 A.M. ET: Personal Consumption Expenditures – Price Index (MoM) (May)
08:30 A.M. ET: Personal Consumption Expenditure – Price Index (YoY) (May)
08:30 A.M. ET: New York Federal Reserve Bank President William Dudley speaks.
09:05 A.M. ET: St. Louis Federal Reserve Bank President James Bullard speaks.
09:45 A.M. ET: Chicago Purchasing Managers’ Index (June)
09:55 A.M. ET: Reuters/Michigan Consumer Sentiment Index (June)