- US: Dow: 12943.80 (0.56%), S&P 500: 1374.02 (0.62%), NASDAQ: 2976.08 (0.84%)
- Europe: CAC: 3271.20 (0.95%), DAX: 6578.21 (1.25%), FTSE: 5687.73 (0.83%).
- Asia-Pacific: Australia: 4127.20 (-0.14%), China: 2229.19 (0.14%), Hong Kong: 19735.53 (1.49%), India: 5287.95 (0.18%), Japan: 9066.59 (0.70%).
- Metals: Gold: 1621.80 (1.51%), Silver: 28.28 (2.84%), Copper: 3.55 (2.21%)
- Energy: Crude Oil: 87.66 (4.67%), Natural Gas: 2.90 (2.66%)
- Commodities: Corn: 6.74 (2.86%), Soya Bean: 14.74 (2.56%), Wheat: 8.13 (2.91%)
- Currency: Euro (€) / US Dollar ($) (EURUSD): 1.2609 (-0.21%), British Pound Sterling (UK£) / US Dollar ($) (GBPUSD): 1.5692 (0.01%), US Dollar ($) / Japanese Yen (¥) (USDJPY): 79.8650 (0.44%)
- 10 year US Treasury: 1.629% (0.041)
Market and Economy News Update
U.S. markets end higher: U.S. markets closed near the highs of the day on Tuesday, as data showed factory orders topped estimates. The sentiment was also boosted by investor speculation that central banks in U.S. and Europe will take steps to help economic growth. The Dow Jones Industrial Average (INDEXDJX:.DJI) climbed 0.56 percent, to close at 12,943.82. The S&P 500 (INDEXSP:.INX) rose 0.62 percent, to end at 1374.02, while the NASDAQ Composite (INDEXNASDAQ:.IXIC) rallied 0.84 percent, to finish at 2,976.08.
U.S. factory orders rise in May: Orders for U.S. factory goods rose in May for the first time in three months, amid gains in orders for durable and nondurable goods. The Commerce Department said factory orders increased 0.7 percent in May from April, which was better than economists’ forecast of a reading of 0.1 percent.
Oil prices soar: Oil prices jumped on Tuesday as Iran’s testing of several missiles and threats to block tanker traffic in the Strait of Hormuz, increased fears of supply disruption. Crude oil for August delivery increased 4.7 percent, to settle at $87.66 a barrel on the New York Mercantile Exchange. Brent oil for August settlement soared 3.1 percent to $100.40 a barrel on the London-based ICE Futures Europe exchange.
Stocks in Focus
- Ford Motor Company (NYSE:F) and General Motors Company (NYSE:GM) ended the day significantly higher after both automakers reported monthly sales in June that jumped 7 percent and 15.5 percent, respectively, beating expectations. Toyota Motor Corporation (NYSE:TM) recorded a 60 percent gain in sales, but marginally trailed expectations.
- The US Federal Energy Regulatory Commission is investigating JPMorgan Chase & Co. (NYSE:JPM) over potential power-market manipulation in California and the Midwest region.
- Intel Corporation (NASDAQ:INTC) told an EU appeals court that the European Commission relied on inadequate evidence to investigate claims that the chipmaker’s business practices harmed rival Advanced Micro Devices, Inc. (NYSE:AMD).
- Retailers like J.C. Penney Company, Inc. (NYSE:JCP), Lowe’s Companies, Inc. (NYSE:LOW), and The Home Depot, Inc. (NYSE:HD) ended the day lower after a survey conducted by International Council of Shopping Centers and Goldman Sachs showed that weekly retail sales in the week ended June 30 rose at the slowest pace in at least nine weeks.
- Netflix, Inc. (NASDAQ:NFLX) said its customers watched a total of 1 billion hours of movies and television shows, online, in June.
- Activision Blizzard, Inc. (NASDAQ:ATVI) has entered into a partnership with Chinese internet services provider, Tencent Holdings Ltd (HKG:0700), to bring its best-selling “Call of Duty” franchise to Chinese video game players.
- The U.S. Food and Drug Administration today approved OraSure Technologies, Inc. (NASDAQ:OSUR)’s home HIV test, OraQuick In-Home HIV test, making it the first over-the-counter test for the deadly virus.
- Eastman Kodak Company (PINK:EKDKQ) has won court approval to auction its digital imaging patents as part of its bankruptcy restructuring.
- Vancouver-based Fortuna Silver Mines Inc. (TSE:FVI) has discovered high-grade gold and silver mineralization at the Tlacolula project in southern Mexico.
Hedge Fund News Update
- Daniel Loeb’s Third Point LLC has acquired a substantial position in natural gas producer Chesapeake Energy Corporation (NYSE:CHK). The hedge fund however did not disclose whether it was a net long or short position.
- Houston-based BMC Software, Inc. (NASDAQ:BMC) has agreed to add two representatives from Paul Singer’s Elliott Management, John Dillon and Jim Schaper, to its board, thereby avoiding a proxy fight with the activist shareholder.
- Singapore-based Dymon Asia Capital has named David Chan, former head of macro trading at Goldman Sachs Group, Inc. (NYSE:GS), as chief executive officer.
- Everbright Capital Management, backed by the Chinese state-controlled Everbright Ltd, will launch a couple of hedge funds this week, and has hired former global head of equity trading at Royal Bank of Scotland Group plc (ADR) (NYSE:RBS), Ali Ahmed, and former managing director at New York-based hedge fund Jana Partners LLC, Adam Weinrich, to run the funds.
Brokerage Upgrades and Downgrades on Tuesday, July 03, 2012
- Eagle Bancorp Montana Inc (NASDAQ:EBMT) was upgraded to “buy” from “neutral” at DA Davidson.
- Eastman Chemical Company (NYSE:EMN) was raised to “buy” from “neutral” by analysts at Citigroup.
- Gardner Denver, Inc. (NYSE:GDI) was lifted to “buy” from “hold” at Capstone Investments with a target price of $65.
- Nanosphere, Inc. (NASDAQ:NSPH) was raised to “buy” from “hold” by analysts at Jefferies.
- NetGear, Inc. (NASDAQ:NTGR) was upgraded to “overweight” from “equal weight” by analysts at Barclays Capital with a price target of $45.
- ADTRAN, Inc. (NASDAQ:ADTN) was cut to “equal weight” from “overweight” at Barclays Capital with a target price of $32.
- Anworth Mortgage Asset Corporation (NYSE:ANH) was downgraded to “hold” from “buy” by analysts at Stifel Nicolaus.
- The Bank of Kentucky Financial Corp (NASDAQ:BKYF) was lowered to “neutral” from “outperform” at Robert W. Baird with a price target of $26.
- InterDigital, Inc. (NASDAQ:IDCC) was cut to “equal weight” from “overweight” by analysts at Barclays Capital with a target price of $32.
- Lumber Liquidators Holdings Inc (NYSE:LL) was downgraded to “hold” from “buy” at KeyBanc Capital Markets.
- Olin Corporation (NYSE:OLN) was lowered to “sell” from “neutral” by analysts at Longbow.
- Research In Motion Limited (TSE:RIM) (NASDAQ:RIMM) was cut to “underweight” from “equal weight” at Barclays Capital with a target price of $6.
- SandRidge Mississippian Trust I (NYSE:SDT) was downgraded to “sell” from “hold” by analysts at Wunderlich with a price target of $23.
- Triangle Capital Corporation (NYSE:TCAP) was lowered to “neutral” from “outperform” by analysts at Robert W. Baird with a target price of $23.