Morning Market Update
* US: Dow Futures: 12691.00 (-0.28%), S&P 500 Futures: 1348.00 (-0.28%), NASDAQ Futures: 2608.50 (-0.02%)
* Europe: CAC: 3163.23 (-0.18%), DAX: 6403.03 (-0.11%), FTSE: 5639.15 (-0.42%)
* Asia-Pacific: Australia: 4118.30 (-0.95%), China: 2170.81 (-2.43%), Hong Kong: 19428.09 (-1.92%), India: 5275.15 (-0.79%), Japan: 8896.88 (-1.39%).
* Metals: Gold: 1585.45 (0.41%), Silver: 27.25 (1.23%), Copper: 3.43 (0.50%)
* Energy: Crude Oil: 84.92 (0.46%), Natural Gas: 2.82 (1.48%)
* Commodities: Corn: 7.31 (-1.98%), Soya Bean: 15.54 (-1.15%), Wheat: 8.47 (-2.96%)
* Currency: EUR/USD: 1.2293 (0.02%), GBP/USD: 1.5509 (0.12%), USD/JPY: 79.5800 (-0.10%)
* 10 year US Treasury: 1.527% (-0.024)
Financial and Economic News Update
U.S. stock-index futures decline: U.S. stock index futures are pointing to a lower on Monday, ahead of Alcoa Inc. (NYSE:AA)’s earnings report after the closing bell. The Dow futures, the S&P futures and the NASDAQ future are all trading marginally in the red.
European markets in the red: European markets are trading lower, with the German DAX (INDEXDB:DAX) trading down 0.1 percent at 6403.03, the FTSE 100 (INDEXFTSE:UKX) 0.4 percent lower at 5639.15, and the CAC 40 (INDEXEURO:PX1) declined 0.2 percent to 3163.23. The euro zone blue-chip ESTX 50 PR.EUR (INDEXSTOXX:SX5E) (Euro Stoxx 50) was down 0.06 percent.
Asian markets end lower: Asian markets closed lower on Monday with Japan’s NIKKEI 225 (INDEXNIKKEI:NI225) down 1.4 percent to 8,896.88. The HANG SENG INDEX (INDEXHANGSENG:HSI) closed down 1.88 percent at 19,428.09, while the SSE Composite Index (SHA:000001) (Shanghai Composite Index)closed at
2,170.8 points. The S&P/ASX 200 (INDEXASX:XJO) index lost 39.5 points to finish at 4,118.3. The benchmark Indian 30-share BSE SENSITIVE (INDEXBOM:SENSEX) index closed down 0.85 percent at 17,371.58 points.
Stocks in Focus
* Managed care provider Amerigroup Corporation (NYSE:AGP) has agreed to be acquired by health insurer, WellPoint, Inc. (NYSE:WLP), for $4.9 billion in cash.
* News and information agency, Thomson Reuters Corporation (USA) (NYSE:TRI) (TSE:TRI), has agreed to buy FX Alliance Inc (NYSE:FX), a provider of foreign-exchange trading platforms, for $22 a share, or $625 million, in cash.
* The New York Post reported that the Federal Trade Commission could approve Facebook Inc (NASDAQ:FB)’s $1 billion purchase of Instagram by mid-August.
* Campbell Soup Company (NYSE:CPB) will buy natural-foods company, Bolthouse Farms, from a fund managed by Madison Dearborn Partners, for $1.55 billion in cash.
* The Boeing Company (NYSE:BA) has won a $7.2 billion order for sixty 737 MAX 8 and fifteen 737 MAX 9 airplanes, from US group Air Lease Corp (NYSE:AL), at the Farnborough air show near London.
* French media giant Vivendi SA (EPA:VIV) is planning to sell its 60 percent stake in video game maker, Activision Blizzard, Inc. (NASDAQ:ATVI), and Reuters reported that Time Warner Inc. (NYSE:TWX) and Microsoft Corporation (NASDAQ:MSFT) could be among possible bidders
* Satellite radio provider Sirius XM Radio Inc (NASDAQ:SIRI) has raised its full-year subscriber and revenue growth guidance, and said that it now expects 1.6 million net new subscribers, and revenue of $3.4 billion.
* Ampio Pharmaceuticals, Inc. (NASDAQ:AMPE) soared 7.5 percent after reporting results from Phase 2 trial of the drug Optima to treat diabetes-related vision disorders.
* UBS has downgraded credit-card companies, Visa Inc (NYSE:V) and Mastercard Inc (NYSE:MA), to “sell” from “neutral.” Both the stocks are deep in the red in pre-market trading.
* Jefferies & Co. has initiated coverage of Wells Fargo & Company (NYSE:WFC) with a “buy” rating and a price target of $39, citing an above-average growth potential.
* Nanosphere, Inc. (NASDAQ:NSPH) jumped 6.6 percent after analysts at Roth Capital upgraded the stock to “buy” from “neutral.”
* A U.K. court has ruled that Samsung Electronics Co.’s Galaxy tablet doesn’t infringe the design of Apple Inc. (NASDAQ:AAPL)’s iPad.
* Spanish lenders Banco Santander, S.A. (NYSE:SAN) and Banco Bilbao Vizcaya Argentaria SA (ADR) (NYSE:BBVA) slumped more than 3 percent as yield on Spain’s benchmark 10-year bond pushed above the 7 percent level.
* Olaf Koch, the Chief Executive Officer of German retailer, Metro AG (ETR:MEO) (FRA:MEO), said the company would not escape the impact of the European debt crisis, which has dampened German consumers’ willingness to spend.
* British miner Xstrata PLC (LON:XTA) slid 2.4 percent in London trading after the Sunday Times reported the company will delay a vote on the proposed merger with Swiss commodity giants, Glencore International Plc (LON:GLEN), until September.
* Specialist recruitment consultancy, Michael Page International plc (LON:MPI), reported a 6.6 percent decline in second-quarter gross profit to 138 million pounds ($214 million), but said full year operating profit should be in line with estimates.
* French spirits maker Remy Cointreau (EPA:RCO) is in exclusive negotiations to buy privately-owned Scottish whisky maker Bruichladdich Distillery, Reuters reported.
* German broadcaster, ProSiebenSat.1 Media AG (ETR:PSM) (FRA:PSM), controlled by KKR & Co. (KKR) and Permira Advisers LLP, slid 3.7 percent in Frankfurt trading after it was lowered to “neutral” from “buy” at Citigroup Inc.
* Oil services giant Schlumberger Limited. (NYSE:SLB) has agreed to acquire a 20.1 percent stake in Chinese oilfield services company, Anton Oilfield Services (Group) Ltd. (HKG:3337).
* Japan’s biggest brokerage, Nomura Holdings, Inc. (ADR) (NYSE:NMR) (TYO:8604)was excluded as a lead underwriter from the state-owned Japan Housing Finance Agency’s 30-year bond issues, planned to take place by the end of September, amid a regulatory crackdown on an insider trading scandal.
* China Yurun Food Group Limited (HKG:1068), the country’s second-largest meat-product supplier, plunged more than 9 percent in trade today after it said founder Zhu Yicai has resigned as chairman.
* Thai energy company PTT Exploration and Production has extended the deadline for its $1.9 billion offer for East Africa-focused gas explorer, Cove Energy PLC (LON:COV), to July 13. PTT Exploration is locked in a battle with Royal Dutch Shell plc (ADR) (NYSE:RDS.A) (LON:RDSA) to takeover the company.
* Australian property developer Lend Lease Group (ASX:LLC) has secured 2 billion Australian dollars ($2.03 billion) in funding for the first two commercial towers at the Barangaroo South Project on Sydney Harbor, of which the Canada Pension Plan Investment Board will invest 1.04 billion Australian dollars ($1.06 billion).
* Japanese mining and construction equipment maker, Komatsu Ltd (TYO:6301), ended 4 percent lower in Tokyo trading after Nomura Securities downgraded the stock to “neutral” from “buy,” and slashed its target price.
* Perth-based Iluka Resources Limited (ASX:ILU), the world’s biggest zircon producer, cut its sales forecasts for the second-half of 2012, in the face of deteriorating global economic conditions.
* JPMorgan Chase has begun coverage of Chinese online video company, Youku Inc (NYSE:YOKU), with an “overweight” rating.
Economic Calendar for Monday, July 09, 2012:
01:00 A.M. ET: Chicago Federal Reserve Bank President Charles Evans speaks.
11:00 A.M. ET: 4-Week Bill Announcement
11:30 A.M. ET: 3-Month Bill Auction
11:30 A.M. ET: 6-Month Bill Auction
11:55 A.M. ET: San Francisco Federal Reserve Bank Pres. John Williams speaks.
03:00 P.M. ET: Consumer Credit Change (May)