Morning Market Update
Tollymore Investment Partners 2Q20 Letter: ESG ≠ sustainable investing
Tollymore Investment Partners letter to investors for the second quarter ended June 30, 2020. Q2 2020 hedge fund letters, conferences and more Dear partners, Tollymore generated returns of +19% in the first six months of 2020, net of all fees and expenses. Investment results since inception are shown below: Tollymore's Raison Detre Tollymore is a Read More
- US: Dow Futures: 12903.00 (0.33%), S&P 500 Futures: 1372.60 (0.39%), NASDAQ Futures: 2637.00 (0.65%)
- Europe: CAC: 3259.63 (0.74%), DAX: 6745.42 (0.90%), FTSE: 5688.56 (0.05%)
- Asia-Pacific: Australia: 4206.70 (2.02%), China: 2184.84 (0.72%), Hong Kong: 19559.05 (1.63%), India: 5242.70 (0.51%), Japan: 8795.55 (0.78%).
- Metals: Gold: 1586.20 (0.98%), Silver: 27.47 (1.38%), Copper: 3.53 (1.67%)Every morning we puts out a news report with the latest news in global stock markets, company news, and global economic news.
- Energy: Crude Oil: 91.12 (1.39%), Natural Gas: 2.95 (-0.84%)
- Commodities: Corn: 7.65 (-0.19%), Soya Bean: 15.81 (-0.19%), Wheat: 8.86 (-0.17%)
- Currency: EUR/USD: 1.2246 (-0.30%), GBP/USD: 1.5685 (0.20%), USD/JPY: 78.6100 (-0.24%)
- 10 year US Treasury: 1.506% (0.012)
Financial and Economic News Update
U.S. stock-index futures trading higher: U.S. stock index futures are pointing to a higher open on Thursday amid better than expected corporate earnings. On the economic front, Labor Department figures showed that applications for jobless benefits rose by 34,000 to 386,000, last week. Economists had forecast 365,000 claims. The Dow futures, the S&P futures and the NASDAQ future are all trading close to half a percent higher.
European markets in the green: European markets are trading higher buoyed by a slew of better than expected corporate earnings results. The German DAX (INDEXDB:DAX) was trading up 0.9 percent at 6745.42, the FTSE 100 (INDEXFTSE:UKX) was unchanged at 5688.56, and the CAC 40 (INDEXEURO:PX1) rose 0.7 percent to 3259.63. The euro zone blue-chip ESTX 50 PR.EUR (INDEXSTOXX:SX5E) (Euro Stoxx 50) was up 0.90 percent.
Asian markets end higher: Asian markets closed higher on Thursday with Japan’s NIKKEI 225 (INDEXNIKKEI:NI225) ended 0.8 percent higher at 8795.55. The HANG SENG INDEX (INDEXHANGSENG:HSI) was the one of the top performer in the region, up 1.6 percent at 19559.05, while the SSE Composite Index (SHA:000001) (Shanghai Composite Index) closed at 2184.84 points. The S&P/ASX 200 (INDEXASX:XJO) index jumped 2 percent to 4206.70. The benchmark Indian 30-share BSE SENSITIVE (INDEXBOM:SENSEX) index rose 0.55 percent to 17,278.85 points.
Stocks in Focus
- Morgan Stanley (NYSE:MS) reported second quarter adjusted earnings of 16 cents per share, compared to estimates of 29 cents per share. Revenue declined 24 percent to $6.95 billion from $9.21 billion a year earlier, amid a slowdown in trading and deal-making.
- Verizon Communications Inc (NYSE:VZ), the largest U.S. phone carrier, reported second-quarter profit of $1.83 billion, or 64 cents a share, on revenue of $28.55 billion that matched estimates. The company it was on track to witness double-digit earnings growth this year.
- The Travelers Companies, Inc. (NYSE:TRV), the only insurer in the Dow Jones Industrial Average, posted second quarter earnings per share of $1.26, below estimates of $1.35. The company said that weather related losses were higher than expected during the quarter.
- Southwest Airlines Co. (NYSE:LUV) reported second quarter earnings, excluding certain items, of 36 cents per share, four cents above estimates. Revenue increased 4.7 percent to $4.62 billion that also topped estimates. Southwest said steady traffic growth helped offset rising jet fuel prices.
- Philip Morris International Inc. (NYSE:PM), the world’s largest publicly traded tobacco company, posted second quarter earnings per share of $1.36, one cent above estimates. Revenue, excluding excise taxes, fell 2 percent to $8.1 billion. Analysts were expecting revenue of $8 billion.
- Managed care provider, UnitedHealth Group Inc. (NYSE:UNH), reported second-quarter earnings of $1.27 per share, eight cents above estimates, and also raised its full-year profit outlook.
- Automobile retailer, AutoNation, Inc. (NYSE:AN), reported second quarter earnings, excluding one-time items, of 66 cents per share, topping the average analysts’ estimate of 59 cents per share. Revenue increased 17 percent to $3.9 billion, also above estimates. The board has also approved a share repurchase program of up to $250 million.
- Regional bank, BB&T Corporation (NYSE:BBT), reported a better than expected second quarter profit and revenue amid higher fee-based income and smaller provision for credit losses.
- Clothing maker, V.F. Corporation (NYSE:VFC), reported second quarter earnings per share of $1.11, beating estimates of 94 cents per share. It also raised its full-year outlook by 5 cents.
- Johnson Controls, Inc. (NYSE:JCI), the maker of automotive parts, posted lower than expected second quarter profit due to higher costs and weak demand for replacement batteries. The company also slashed its outlook for the current quarter.
- Microsoft Corporation (NASDAQ:MSFT) will officially launch the new Windows 8 operating system on October 26.
- Walgreen Company (NYSE:WAG), the largest US drugstore chain, has reached a multi-year pharmacy network agreement with pharmacy-benefit manager, Express Scripts Holding Co.
- Finnish handset maker, Nokia Corporation (NYSE:NOK), posted second quarter adjusted net-loss of 8 cents per share, one cent above estimates, and said net cash stood at 4.2 billion euros that was better than analysts’ projections of about 3.7 billion euros. The company also recorded better than expected sales of its flagship smartphone, Lumia.
- British lender, Lloyds Banking Group PLC (NYSE:LYG) (LON:LLOY), has agreed to sell 632 branches to the Co-Operative Group, as part of a multi million pound deal.
- Swedish home-appliance maker, AB Electrolux (STO:ELUX-B), reported second quarter earnings and revenue that topped forecasts, but warned that demand in its key European market was likely to be flat or slightly lower this year.
- French industrial group, Alstom SA (EPA:ALO), said fiscal first quarter sales rose 6 percent to 4.78 billion euros ($5.87 billion), and new orders in creased 20 percent, buoyed by demand for turbines and trains in emerging markets.
- Swedish engineering firm, Sandvik AB (STO:SAND), posted forecast-beating second quarter earnings, and quarterly orders, that were in line with expectations. The company however cautioned that macroeconomic economic uncertainty had increased, predominantly in Europe
- Akzo Nobel N.V. (AMS:AKZA), the world’s largest maker of paints and coatings, reported second quarter earnings and revenue that beat estimates, but warned of a tough economic environment and rising raw material costs.
- British engineering company, Ricardo plc (LON:RCDO), was trading 1.3 percent higher after it said full-year profit will be at the upper end of analyst expectations.
- London-listed oil and gas company, BG Group plc (LON:BG), slumped 2 percent after analysts at Credit Suisse downgraded the stock to “neutral” from “outperform,” and removed it from its Europe Focus List.
- China’s big four state banks, Industrial and Commercial Bank of China (HKG:1398) (SHA:601398), China Construction Bank Corporation (HKG:0939) (SHA:601939), Bank of China (HKG:3988) (SHA:601988) and Agricultural Bank of China Limited (HKG:1288) (SHA:601288), saw total new lending double in the first half of July from a month earlier, according to a report in the state-run Shanghai Securities News.
- Australian oil and gas producer, Woodside Petroleum Limited (ASX:WPL), posted a 43 percent rise in second-quarter production, helped by a better than expected performance at its Pluto liquefied natural gas project, and hiked its full year production target.
- Mizuho Financial Group Inc. (NYSE:MFG) (TYO:8411), Japan’s third-biggest bank by market value, has agreed to pay $128 million to settle U.S. regulatory claims that it provided inaccurate information about assets to inflate the credit ratings of a mortgage-related product.
- Mobile phone carrier, China Unicom (Hong Kong) Limited (NYSE:CHU) (HKG:0762), said it had added 3 million 3G subscribers last month, taking its total 3G subscriber base to 57.53 million.
- Adelaide-based Santos Limited (ASX:STO) reported a 9 percent increase in second-quarter production, and a 13 percent jump in quarterly revenue, compared to the same period a year ago, boosted by the on-time start-up of new projects.
- Japanese industrial robots maker, Yaskawa Electric Corporation (TYO:6506), soared 8 percent in Tokyo trading after reporting first-half operating profit that beat market expectations.
- Australian real estate company, Westfield Group (ASX:WDC), is planning to bid for Thakral Holdings Group (ASX:THG)’s 1.3 billion Australian dollars ($1.35 billion) commercial development project at Wynyard station in Sydney, according to a report in the Australian Financial Review.
Economic Calendar for Thursday, July 19, 2012:
08:30 A.M. ET: Initial Jobless Claims (Week ending Saturday, July 14, 2012)
08:30 A.M. ET: Continuing Jobless Claims (Week ending Saturday, July 07, 2012)
09:45 A.M. ET: Bloomberg Consumer Comfort Index (Week ending Sunday, July 15)
10:00 A.M. ET: Existing Home Sales (MoM) (June)
10:00 A.M. ET: Existing Home Sales Change (June)
10:00 A.M. ET: Leading Indicator (MoM) (June)
10:00 A.M. ET: Philadelphia Fed Manufacturing Survey (July)
10:30 A.M. ET: EIA Natural Gas Report (Week ending Friday, July 13, 2012)
04:30 P.M. ET: Fed Balance Sheet
04:30 P.M. ET: Money Supply