- US: Dow Futures: 12639.00 (-0.05%), S&P 500 Futures: 1340.60 (-0.23%), NASDAQ Futures: 2579.50 (0.01%)
- Europe: CAC: 3102.26 (0.02%), DAX: 6426.20 (0.11%), FTSE: 5530.97 (-0.05%)
- Asia-Pacific: Australia: 4133.20 (0.10%), China: 2146.59 (0.24%), Hong Kong: 18903.20 (-0.79%), India: 5128.20 (0.20%), Japan: 8488.09 (-0.24%).
- Metals: Gold: 1573.10 (-0.27%), Silver: 26.78 (-0.97%), Copper: 3.36 (-0.49%)
- Energy: Crude Oil: 87.62 (-0.59%), Natural Gas: 3.09 (-0.80%)
- Commodities: Corn: 7.70 (-1.07%), Soya Bean: 15.83 (-3.83%), Wheat: 8.94 (-3.21%)
- Currency: EUR/USD: 1.2103 (-0.13%), GBP/USD: 1.5539 (0.21%), USD/JPY: 78.2400 (-0.19%)
- 10 year US Treasury: 1.457% (0.030)
Financial and Economic News Update
U.S. stock-index futures trading flat: U.S. stock index futures are pointing to a flat open on Tuesday as investor optimism about encouraging data from China was capped by Moody’s Investors Service’s cutting the outlook on Germany’s rating. The Dow futures, the S&P futures and the NASDAQ future are all trading close to the flat-line.
European markets little changed: European markets are flat in trade today with the German DAX (INDEXDB:DAX) trading up 0.1 percent at 6426.20, the FTSE 100 (INDEXFTSE:UKX) declined 0.1 percent to 5530.97, and the CAC 40 (INDEXEURO:PX1) was unchanged at 3102.26. The euro zone blue-chip ESTX 50 PR.EUR (INDEXSTOXX:SX5E) (Euro Stoxx 50) was down 0.50 percent.
Asian markets end mixed: Asian markets closed mixed on Tuesday with Japan’s NIKKEI 225 (INDEXNIKKEI:NI225) down 0.2 percent to close at a six-week low of 8,488.09. The HANG SENG INDEX (INDEXHANGSENG:HSI) closed down 0.8 percent at 18,903.2, while the SSE Composite Index (SHA:000001) (Shanghai Composite Index) closed at 2,146.6. The S&P/ASX 200 (INDEXASX:XJO) index ended 4.3 points higher at 4,133.2. The benchmark Indian 30-share BSE SENSITIVE (INDEXBOM:SENSEX) index rose 0.3 percent.
Stocks in Focus
· AT&T Inc. (NYSE:T) posted second-quarter profit of $3.9 billion, or 66 cents a share that beat analysts’ estimates. Revenue edged up 0.3 percent to $31.58 billion, but fell short of analysts’ expectations for $31.7 billion. The largest U.S. phone company added 320,000 contract customers in the second quarter. Analysts were expecting about 233,000 contract customers.
· United Parcel Service, Inc. (NYSE:UPS) reported second-quarter earnings excluding items of $1.15 cents per share, on revenue of $13.35 billion that missed analysts estimates of earnings excluding items of $1.17 a share on $13.78 billion in revenue. The world’s largest package-delivery company also cut its full-year forecast.
· E I Du Pont De Nemours And Co (NYSE:DD) posted second quarter earnings excluding one-time items of $1.48 per share, 2 cents above the average analysts’ estimate. Revenue increased 8 percent to $11.28 billion that was also slightly higher than Street expectations. The company, however, said full year profit is expected to be at the lower end of a previously announced forecast.
· Whirlpool Corporation (NYSE:WHR), the world’s largest appliance maker, said second quarter earnings excluding certain items stood at $1.55 per share, nine cents short of estimates. Second-quarter sales fell 4.6 percent to $4.51 billion that trailed the analysts’ average estimate of $4.63 billion.
· The Western Union Company (NYSE:WU) reported second quarter earnings excluding items of 46 cents per share that beat the average analysts’ estimate of 43 cents per share. Revenue increased 4 percent to $1.43 billion, but trailed Street expectations of $1.45 billion. The world’s largest payment transfer company also increased its full-year earnings forecast.
· Lockheed Martin Corporation (NYSE:LMT) reported better-than-expected second-quarter net profit of $781 million or $2.38 per share, and raised its full-year earnings and revenue forecast, but said the proposed U.S. defense spending cuts could pose serious challenges going forward. Lockheed Martin receives more than 80 percent of its revenue from the U.S. government.
· Peabody Energy Corporation (NYSE:BTU), the world’s biggest private-sector coal company, said second quarter net earnings fell to $204.7 million, or 75 cents per share, from $284.8 million, or $1.05 per share, a year earlier, while revenue edged up nearly 1 percent to $2.0 billion. The company forecast third-quarter earnings that was below Wall Street expectations, and said full-year coal sales should be between 230 million and 250 million tons.
· Truck leasing company, Ryder System, Inc. (NYSE:R) reported a 17 percent increase in second-quarter earnings to $46.7 million, or 91 cents per share, amid an increase in lease and rental revenue, and also raised its full-year earnings forecast.
· Lexmark International Inc (NYSE:LXK) posted second quarter earnings excluding certain items of 89 cents per share, four cents short of the consensus estimate. Revenue declined for the third straight quarter to $918.6 million, also trailing estimates.
· Tobacco producer, Altria Group, Inc. (NYSE:MO) reported second quarter earnings per share of 59 cents, beating estimates by two cents. Revenue for the quarter also beat estimates.
· Biogen Idec Inc. (NASDAQ: BIIB) reported second-quarter profit of $1.82 per share that topped estimates of $1.56 a share, helped by robust sales of its multiple sclerosis drug helped Biogen.
· Owens & Minor, Inc. (NYSE:OMI) has agreed to acquire European health-care company, Movianto Group, for about $158 million.
· The board of Lindsay Corporation (NYSE:LNN) has approved a 28 percent increase in quarterly dividend to 11.5 cents a share, from 9 cents a share.
- German software giant, SAP AG (ADR) (NYSE:SAP) (ETR:SAP) (FRA:SAP) reported an 18 percent rise in second quarter net profit to 831 million euros ($1.01 billion) boosted by double-digit software revenue growth across all regions. The company maintained its full-year outlook and said software and service revenue should grow between 10 to 12 percent.
- Swedish truck maker, AB Volvo (STO:VOLV-A) reported a 5 percent fall in second quarter net profit due to weaker demand in North America and Southern Europe. Second-quarter vehicle orders dropped 19 percent to 52,946 trucks from 65,006 vehicles in the year ago period. The company is also planning to scale down production in North America in response to falling demand.
- Man Group Plc (LON:EMG), the world’s largest publicly traded hedge fund manager, announced plans to double its cost cuts, after reporting a first half pre-tax loss of $164 million. The fund manager said total assets under management decreased to $52.7 billion from $59 billion at the end of March.
- Imperial Tobacco Group PLC (LON:IMT), one of the world’s largest cigarette groups, posted a 3 percent rise in nine-month revenue, boosted by price increases, but volumes fell 3 percent.
- Russian state oil company Rosneft’ NK OAO (MCX:ROSN) is in talks with British oil major, BP plc (ADR) (NYSE:BP) (LON:BP) to acquire its 50 percent stake in Anglo-Russian oil firm TNK-BP.
- STMicroelectronics N.V. (ADR) (NYSE:STM) (EPA:STM), Europe’s largest chipmaker, reported second-quarter net loss of $75 million or 8 cents per share, compared to net income of $420 million or 46 cents per share in the year-ago period. The company forecast third-quarter revenue will grow by about 2.5 percent, lower than what analysts were expecting.
- Dutch phone company, Royal KPN NV (KPN), partially controlled by Carlos Slim’s America Movil SAB de CV (ADR) (NYSE:AMX) (NASDAQ:AMOV), posted second quarter profit that missed analysts’ estimates, and slashed its dividend in a bid to control rising debt.
- UK fund manager, Aberdeen Asset Management plc (LON:ADN) was upgraded by analysts at Societe Generale to “buy” from “hold.” The stock was trading a percent higher in London.
- Analysts at Barclays Capital have raised advertising firm, Publicis Groupe SA (EPA:PUB) and Television Francaise 1 SA (EPA:TFI), the owner of France’s most-watched television channel, to “overweight” from “equal weight.”
- Japan’s Toshiba Corp (TYO:6502) will cut production of NAND flash memory chips, used in smart phones, tablets and storage devices, by 30 percent, to cope with oversupply and tumbling prices.
- Australian surfwear retailer, Billabong International Limited (ASX:BBG), said U.S. private equity firm TPG Capital made a fresh takeover bid worth 694 million Australian dollars ($712 million).
- Consumer electronics giant, Sharp Corporation (TYO:6753) slumped 1.7 percent to close at its lowest level since 1975, after the Nikkei business daily said that the company was likely to post a bigger than expected 100 billion yen ($1.3 billion) loss in the April-June quarter amid a decline in LCD and solar businesses.
- · Chinese search engine, Baidu.com, Inc. (ADR) (NASDAQ:BIDU) is looking at both acquisitions and in-house development to expand its range of services, Chief Executive Officer Robin Li said.
- Indian software services exporter, Wipro Limited (ADR) (NYSE:WIT) (NSE:WIPRO) reported an 18 percent rise in first quarter net profit, in line with expectations, on the back of strong demand for outsourcing services. The company maintained its revenue outlook for the second quarter.
- China Railway Construction Corp Limited (HKG:1186) (SHA:601186), the country’s second largest railway contractor, jumped 3.7 percent in Hong Kong trading after signing 19.27 billion yuan worth of new contracts.
- Japanese brewer, Kirin Holdings Company, Limited. (TYO:2503), the second largest shareholder in Fraser and Neave Limited (SGX:F99), has hired Deutsche Bank AG (USA) (NYSE:DB) (ETR:DBK) (FRA:DBK) to examine all possible options as it prepares to defend its interest in the Singapore conglomerate.
- China Shenhua Energy Company Limited (HKG:1088) (SHA:601088), the country’s biggest coal producer, is planning to invest around 10 billion yuan to build six railroads in Inner Mongolia to improve its coal transport capacity.
Economic Calendar for Tuesday, July 24, 2012:
07:45 A.M. ET: ICSC-Goldman Store Sales (Week ending Saturday, July 21, 2012)
08:45 A.M. ET: Federal Reserve Chairman Ben Bernanke speaks.
08:55 A.M. ET: Redbook (Week ending Saturday, July 21, 2012)
08:58 A.M. ET: Markit Manufacturing PMI (July)
10:00 A.M. ET: FHFA House Price Index (MoM) (May)
10:00 A.M. ET: Richmond Fed Manufacturing Index (July)
11:30 A.M. ET: 4-Week Bill Auction
11:30 A.M. ET: 52-Week Bill Auction
01:00 P.M. ET: 2-Yr Note Auction