Every afternoon we provide an update on global market levels, economic news, and hedge fund news
Post Market Update
Market Levels
- US: Dow: 12573.80 (1.31%), S&P 500: 1324.18 (1.17%), NASDAQ: 2843.07 (1.19%)
- Europe: CAC: 3046.91 (0.14%), DAX: 6161.24 (0.33%), FTSE: 5473.74 (0.76%).
- 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: 1613.10 (1.06%), Silver: 28.95 (1.16%), Copper: 3.34 (-0.22%)
- Energy: Crude Oil: 83.32 (0.75%), Natural Gas: 2.23 (0.63%)
- Commodities: Corn: 5.84 (-1.35%), Soya Bean: 13.37 (0.43%), Wheat: 6.16 (-2.30%)
- Currency: Euro (€) / US Dollar ($) (EURUSD): 1.2510 (-0.30%), British Pound Sterling (UK£) / US Dollar ($) (GBPUSD): 1.5573 (-0.61%), US Dollar ($) / Japanese Yen (¥) (USDJPY): 79.5250 (0.19%)
- 10 year US Treasury: 1.664% (0.078)
Market and Economy News Update
U.S. markets end higher: U.S. markets jumped more than one percent, wiping out most of the yesterday’s declines, amid market optimism that Fed will take steps to stimulate the economy. The Dow Jones Industrial Average (INDEXDJX:.DJI) rallied 1.31 percent to finish at 12,573.80. The S&P 500 (INDEXSP:.INX) gained 1.17 percent to end at 1,324.18, while the NASDAQ Composite (INDEXNASDAQ:.IXIC) jumped 1.19 percent to close at 2,843.07.
Oil prices rise, Brent slips: Oil prices rose on Tuesday on investor speculation that U.S. inventories dropped. Crude oil for July delivery gained 0.8 percent, to settle at $83.32 a barrel on the New York Mercantile Exchange. Brent oil for July settlement dropped 0.9 percent to $97.14 a barrel on the London-based ICE Futures Europe exchange.
Company News Update
- Dell Inc. (NASDAQ:DELL) announced after the closing bell that it will initiate an 8 cents a share quarterly dividend beginning in the fiscal third quarter.
- Convenience-store operator Casey’s General Stores, Inc. (NASDAQ:CASY) declared fourth quarter results after the bell today. The company reported earnings of $23.07 million or 60 cents per share, 7 cents below the average analysts’ estimate. Revenue stood at $1.75 billion, slightly above consensus estimate of $1.74 billion.
- Shares of Zynga Inc (NASDAQ:ZNGA) plunged to an all-time low today amid fears of declining interest among users for games on Facebook.
- Berkshire Hathaway Inc. (NYSE:BRK.A) has offered to buy Residential Capital LLC’s mortgage assets and loan portfolio.
- Textron Inc. (NYSE:TXT) and Bombardier, Inc. (TSE:BBD.B) soared in trade today after billionaire investor Warren Buffett’s Berkshire Hathaway Inc. agreed to as many as 425 jets from the companies.
- JPMorgan Chase & Co. (NYSE:JPM)’s Chief Executive Jamie Dimon will testify before the U.S. Senate Banking committee tomorrow, a month after the bank suffered a shock $2 billion trading loss.
- Verizon Wireless, co-owned by Verizon Communications Inc. (NYSE:VZ) and Vodafone Group Plc (NASDAQ:VOD), will unveil its shared-usage plan later this month, Bloomberg reported
- The board of Prudential Financial Inc (NYSE:PRU) authorized a stock buy-back of up to $1 billion.
- Pittsburgh-based PNC Financial Services (NYSE:PNC) said it will increase its mortgage buyback reserve by $350 million in the second quarter.
- Electric-car battery maker A123 Systems, Inc. (NASDAQ:AONE) said that it has achieved a breakthrough in lithium-ion batteries that could reduce the cost of electric vehicles.
- First Solar, Inc. (NASDAQ:FSLR), the world’s second largest maker of solar cells, announced that it would increase production at its German plants to cater an unexpected increase in demand in Europe, according to a Reuters report.
- SanDisk Corporation (NASDAQ:SNDK) shares closed 3.9 percent higher amid renewed rumors that the flash memory maker might be up for sale.
- Electronic payments company VeriFone Systems Inc (NYSE:PAY) said that a US district court ruled against it in a patent dispute.
- Molecular diagnostics company GenMark Diagnostics, Inc (NASDAQ:GNMK) provided revised second-quarter revenue guidance and raised its full-year revenue forecasts.
Hedge Fund News Update
- A recent Citigroup Inc. (NYSE:C) survey has shown that hedge fund assets are likely to more than double by 2016 to $5 trillion, amid increasing inflows from pension funds, endowments and other institutional investors.
- London-based Capula Investment Management, which had bet on deepening problems in the Spanish banking system, has so far failed to profit from the crisis, Reuters reported.
- New York-based asset manager Neuberger Berman Group LLC has rolled out its first mutual fund of hedge funds, the Neuberger Berman Absolute Return Multi-Manager Fund, which seeks capital appreciation by allocating its assets to a number of hedge fund advisers.
- · New York-based Fundamental Advisors has roped in Goldman Sachs’ top municipal bond trader, Hector Negroni, to manage a new hedge fund.
- · London-based hedge funds Capula Investment Management and Finisterre Capital have expanded their presence in Asia by opening trading and distribution offices in Hong Kong.
- Hedge fund industry veteran Andrew Landman has been named as the new head of BlackRock, Inc. (NYSE:BLK)’s alternative investment division in Australia.
- Hong Kong-based Value Partners, one of Asia’s largest asset management firms, has launched its first UCITS-compliant fund, the Absolute Greater China Classic Fund, which will investment in equity and equity-related securities listed primarily in the Greater China region.
Brokerage Upgrades and Downgrades on Tuesday, June 12, 2012
- Ascena Retail Group Inc (NASDAQ:ASNA) was raised to “outperform” from “market perform” at FBR Capital with a target price of $23.
- The Boeing Company (NYSE:BA) was upgraded to “outperform” from “market perform” at Bernstein with a target price of $92.
- HollyFrontier Corp (NYSE:HFC) was raised to “buy” from “hold” at Argus with a target price of $40.
- Texas Instruments Incorporated (NASDAQ:TXN) was upgraded to “buy” from “neutral” at National Securities with a target price of $33.
- The Blackstone Group L.P. (NYSE:BX) was raised to “overweight” from “equal weight” at Barclays with a target price of $15.
- Webster Financial Corp (NYSE: WBS) was upgraded to “buy” from “hold” at Sandler O’Neill.
- EnergySolutions, Inc. (NYSE: ES) was cut to “market perform” from “outperform” at Avondale Partners.
- Majesco Entertainment Co. (NASDAQ: COOL) was downgraded to “market perform” from “outperform” at Northland Securities.
- Ryanair Holdings plc (ADR) (NASDAQ:RYAAY)) was cut to “neutral” from “overweight” at HSBC Securities.
- Telenav, Inc. (NASDAQ: TNAV) was downgraded to “under perform” from “neutral” at Robert W. Baird with a target price of $4.
- Vodafone Group Plc (NASDAQ:VOD) was downgraded to “under perform” from “buy” at Bank of America.
