Every afternoon we provide an update on global market levels, economic news, and hedge fund news. In focus today; NKE, BLK, RIM, GLEN, DAL, NAV, GM, F, NOW.
Post Market Update
At this year's Sohn Investment Conference, Dan Sundheim, the founder and CIO of D1 Capital Partners, spoke with John Collison, the co-founder of Stripe. Q1 2021 hedge fund letters, conferences and more D1 manages $20 billion. Of this, $10 billion is invested in fast-growing private businesses such as Stripe. Stripe is currently valued at around Read More
- US: Dow: 12880.10 (2.20%), S&P 500: 1362.16 (2.49%), NASDAQ: 2935.05 (3.00%)
- Europe: CAC: 3196.65 (4.54%), DAX: 6416.28 (4.15%), FTSE: 5571.15 (1.40%).
- Asia-Pacific: Australia: 4094.60 (1.23%), China: 2225.43 (1.33%), Hong Kong: 19441.46 (2.14%), India: 5278.90 (2.52%), Japan: 9006.78 (1.47%).
- Metals: Gold: 1604.20 (3.47%), Silver: 27.58 (5.08%), Copper: 3.49 (4.93%)
- Energy: Crude Oil: 84.96 (9.63%), Natural Gas: 2.82 (3.75%)
- Commodities: Corn: 6.34 (0.40%), Soya Bean: 14.27 (1.73%), Wheat: 7.76 (1.30%)
- Currency: Euro (€) / US Dollar ($) (EURUSD): 1.2654 (-1.70%), British Pound Sterling (UK£) / US Dollar ($) (GBPUSD): 1.5710 (-1.25%), US Dollar ($) / Japanese Yen (¥) (USDJPY): 79.8250 (0.50%)
- 10 year US Treasury: 1.643% (0.065)
Market and Economy News Update
U.S. markets jump: U.S. markets ended the week with a bang, as investors cheered the surprise progress made by European leaders’ on the region’s debt problems. The Dow Jones Industrial Average (INDEXDJX:.DJI) jumped 2.2 percent to 12,880.09. The S&P 500 (INDEXSP:.INX) rallied 2.5 percent to 1362.16, while the NASDAQ Composite (INDEXNASDAQ:.IXIC) jumped 3 percent to 2935.05. All the three indexes ended the first half of the year up more than 5 percent.
Oil prices soar: Oil prices recorded their biggest daily gain in more than three years amid investor optimism that Europe’s debt crisis may be finally contained, after the continent’s leaders decided to help troubled euro zone banks and preserve the single currency. Crude oil for August delivery soared 9.6 percent, to settle at $84.96 a barrel on the New York Mercantile Exchange. Brent oil for August settlement jumped 7 cents to $97.80 a barrel on the London-based ICE Futures Europe exchange.
Stocks in Focus
- Cloud-computing company ServiceNow Inc. (NYSE:NOW) made a spectacular debut on the New York Stock Exchange, ending the day 37 percent higher at $24.64.
- The Federal Trade Commission is looking at whether Google Inc (NASDAQ:GOOG)’s Motorola Mobility unit is illegally blocking rivals’ access to patents for important smart phone technology, Bloomberg reported.
- Toyota Motor Corporation (ADR) (NYSE:TM) said it is adding two Lexus car models to a recall, first announced in late 2009, to address sudden-acceleration issues caused by floor mats.
- General Motors Company (NYSE:GM) ended the day 0.5 percent lower after Deutsche Bank slashed the company’s earnings estimates for 2012 and 2013.
- The U.S. Federal Trade Commission has cleared the $2.2 billion sale of British music company EMI Music Publishing to an investor group led by Sony Corporation (NYSE:SNE).
- Constellation Brands, Inc. (NYSE:STZ), the world’s largest wine seller, posted fiscal first quarter earnings, excluding items, of 40 cents per share, one cent above the average analysts’ estimate. The company also agreed to buy the 50 percent of Crown Imports LLC that it didn’t already own from Grupo Modelo SAB, for $1.85 billion.
- U.S. truck maker Navistar International Corp (NYSE:NAV) and Cummins Inc. (NYSE:CMI), a designer and manufacturer of diesel engines, popped up in trade today on rumors of a new engine deal between the two companies.
- Delta Air Lines, Inc. (NYSE:DAL) pilots have ratified a new labor agreement with the carrier that includes pay hikes, and an increased contribution from the company to the pilot’s pension plan in 2014.
- German industrial and medical gas producer Linde AG (ETR:LIN), and French company, Air Liquide (EPA:AI), have expressed interest in buying U.S. homecare oxygen services provider, Lincare Holdings Inc. (NASDAQ:LNCR), Bloomberg reported.
- Pittsburgh-based energy company Consol Energy Inc. (NYSE:CNX) will lay off 318 employees, or 3.4 percent of its workforce, and suspend operations at a West Virginia coal mine at the end of August.
- Chinese wire maker Fushi Copperweld, Inc. (NASDAQ:FSIN) said it will be taken private by its chairman and co-chief executive officer, Li Fu, and private-equity firm Abax Global Capital, in a deal valuing the company at about $364 million. Fushi shareholders will be paid $9.50 a share, a 21 percent premium to the stock’s closing price on Thursday.
Hedge Fund News Update
- The US Securities and Exchange Commission is suing hedge fund manager Philip Falcone and his firm, Harbinger Capital Partners, accusing him of taking $113 million from a fund to pay his taxes, and favoring some fund customers at the expense of others.
- A number of hedge funds are betting that commodities group Glencore International Plc (LON:GLEN) will table an improved offer for Xstrata PLC (LON:XTA), and will succeed in winning over second-largest shareholder, Qatar Holding, Reuters reported.
- Former Citigroup proprietary trader, Ramakrishna Putcha, has been named as a co-portfolio manager of Citi Capital Advisors’ Strategic Credit Fund.
- London-based Adelante Asset Management had bought a basket of 20 Greek bonds, shortly before the elections there, hoping that steps taken by euro zone leaders to restructure the country’s debt, will provide some boost to its bond prices, according to a Reuters report.
- The U.S. Securities and Exchange Commission is expected to lift the 80-year old ban on hedge funds and other private funds advertising, sometime this summer, Mary Schapiro, SEC chairman, yesterday told a House of Representatives oversight committee.
- Chicago-based hedge fund Pentwater Capital Management LP last week added to its position in car rental company Dollar Thrifty Automotive Group, Inc. (NYSE:DTG), and now owns more than 3.2 million shares, or 11 percent of the Tulsa-based company’s outstanding shares.
- Greenwich, Connecticut-based hedge fund, Black Diamond Capital Management LLC, has named Jean Fleischhacker, former managing director at Babson Capital, as senior managing director of business development.
Brokerage Upgrades and Downgrades on Friday, June 29, 2012
- Bed Bath & Beyond Inc. (NASDAQ:BBBY) was upgraded to “buy” from “hold” at BB&T Capital Markets.
- Celgene Corporation (NASDAQ:CELG) was raised to “buy” from “hold” by analysts at Argus with a target price of $75.
- Crown Holdings, Inc. (NYSE:CCK) was lifted to “overweight” from “equal weight” at Barclays Capital.
- Cincinnati Financial Corporation (NASDAQ:CINF) was upgraded to “buy” from “hold” by analysts at Stifel Nicolaus with a price target of $44.
- Enbridge Energy Partners, L.P. (NYSE:EEP) was raised to “outperform” from “market perform” at Oppenheimer with a price target of $36.
- Riverbed Technology, Inc. (NASDAQ:RVBD) was lifted to “hold” from “underperform” by analysts at Jefferies & Co.
- Tenet Healthcare Corporation (NYSE:THC) was upgraded to “outperform” from “market perform” at Wells Fargo & Co.
- Vail Resorts, Inc. (NYSE:MTN) was raised to “buy” from “neutral” by analysts at Bank of America with a price target of $57.
- Anthera Pharmaceuticals Inc (NASDAQ:ANTH) was cut to “sell” from “neutral” at Citigroup. The stock was also lowered to “neutral” from “buy” by analysts at Ascendiant Capital Markets.
- BlackRock, Inc. (NYSE:BLK) was downgraded to “neutral” from “outperform” by analysts at Macquarie.
- Buckeye Partners, L.P. (NYSE:BPL) was lowered to “market perform” from “outperform” by analysts at Oppenheimer.
- Caterpillar Inc. (NYSE:CAT) was cut to “market perform” from “outperform” by analysts at Raymond James.
- LRR Energy LP (NYSE:LRE) was downgraded to “market perform” from “outperform” at Oppenheimer.
- NIKE, Inc. (NYSE:NKE) was lowered to “neutral” from “outperform” by analysts at Robert W. Baird with a target price of $95. The stock was also downgraded to “neutral” from “buy” by analysts at DA Davidson and Sterne Agee.
- Research In Motion Limited (TSE:RIM) (NASDAQ:RIMM) was cut to “sell” from “hold” at Societe Generale. The stock was also lowered to an “underperform” rating by analysts at Bank of America and Scotia Capital.
- Swift Transportation Co (NYSE:SWFT) was downgraded to “neutral” from “buy” by analysts at Citigroup with a target price of $10.