Vanguard’s move into PE may change the landscape forever
Private equity has been growing in popularity in recent years as more and more big-name funds and institutional investors dive in. Now even indexing giant Vanguard is out to take a piece of the PE pie. During a panel at the Morningstar Investment Conference this year, Fran Kinniry of Vanguard, John Rekenthaler of Morningstar and Read More
- US: Dow Futures: 13090.00 (-0.13%), S&P 500 Futures: 1405.10 (-0.23%), NASDAQ Futures: 2779.25 (-0.13%)
- Europe: CAC: 3425.29 (-0.88%), DAX: 6999.71 (-0.68%), FTSE: 5759.05 (-0.30%).
- Asia-Pacific: Australia: 4359.40 (0.36%), China: 2073.15 (0.84%), Hong Kong: 19811.80 (0.07%), India: 5334.60 (-0.29%), Japan: 9033.29 (-0.58%).
- Metals: Gold: 1667.10 (-0.51%), Silver: 30.84 (-0.65%), Copper: 3.45 (-0.85%)
- Energy: Crude Oil: 95.96 (0.51%), Natural Gas: 2.65 (0.00%)
- Commodities: Corn: 7.97 (-1.11%), Soya Bean: 17.09 (-0.65%), Wheat: 8.76 (-0.79%)
- Currency: EUR/USD: 1.2546 (0.38%), GBP/USD: 1.5788 (-0.04%), USD/JPY: 78.5700 (-0.22%)
- 10 year US Treasury: 1.635% (-0.015)
Financial and Economic News Update
U.S. stock-index futures decline: U.S. stock-index futures are pointing to a lower open on Tuesday, as investors remained cautious ahead of Fed Chairman Ben Bernanke’s speech on Friday in Jackson Hole. On the economic front, U.S. home prices rose 2.3 percent in June from May, the third straight monthly increase. Home prices gained nearly 7 percent in the April-June quarter from the previous quarter. The Dow Jones industrial average, the S&P 500 and the NASDAQ were all trading marginally in the red.
European markets trading lower: European markets are down in trade today, with the German DAX (INDEXDB:DAX) trading 0.7 percent lower at 6999.71, the FTSE 100 (INDEXFTSE:UKX) down 0.3 percent at 5759.05 and the CAC 40 (INDEXEURO:PX1) losing 0.9 percent at 3425.29. The euro zone blue-chip ESTX 50 PR.EUR (INDEXSTOXX:SX5E) (Euro Stoxx 50) was trading 1 percent lower.
Asian markets end mixed: Asian markets closed mixed on Tuesday, with Japan’s NIKKEI 225 (INDEXNIKKEI:NI225) closing 0.6 percent lower at 9,033.29 points. The HANG SENG INDEX (INDEXHANGSENG:HSI) reversed midday losses to ended up 0.1 percent at 19,811.8, while the SSE Composite Index (SHA:000001) (Shanghai Composite Index) closed up 0.9 percent at 2,073.2. The S&P/ASX 200 (INDEXASX:XJO) index gained 15.7 points to close at 4,359.4. The benchmark Indian 30-share BSE SENSITIVE (INDEXBOM:SENSEX) index ended down 0.4 percent.
Company News Update
- Apple Inc. (NASDAQ:AAPL) is seeking a U.S. sales ban on eight Samsung mobile products, including its popular Galaxy smart phones, after winning a patent trial against the South Korean giant.
- Poultry company Sanderson Farms, Inc. (NASDAQ:SAFM) reported third quarter profit of $28.7 million, or $1.25 per share, compared with a loss of $55.7 million, or $2.51 per share, in the year-ago quarter. Sales rose 22 percent to $624.9 million. Analysts were expecting earnings of $1.20 per share on revenue of $620.0 million.
- Footwear retailer Brown Shoe Company, Inc. (NYSE:BWS) reported second quarter earnings excluding items of 16 cents a share that easily beat Street estimates of 3 cents a share. Revenue fell 3 percent to $599.3 million, trailing estimates of $606 million. Same store sales rose 3.9 percent in the quarter, the second consecutive quarterly growth.
- Luxury watchmaker Movado Group, Inc (NYSE:MOV) posted an 83 percent surge in second quarter profit to $8.1 million, or 32 cents a share, from $4.4 million, or 18 cents a share, a year-earlier. Sales for the quarter increased 4.2 percent to $118 million. Analysts had forecast a profit of 18 cents a share on revenue of $122 million. The company also raised its full year profit and sales outlook.
- Drug maker Forest Laboratories, Inc. (NYSE:FRX) has adopted a stockholder-rights plan,, also known as a “poison pill,” to protect against a takeover by billionaire investor and second-largest shareholder, Carl Icahn, who has recently boosted his stake in the company
- Epilepsy-treatment company Cyberonics, Inc. (NASDAQ:CYBX) reported first quarter earnings excluding items of 38 cents a share, on revenue of $58 million that beat the average analysts’ estimate of earnings excluding items of 36 cents a share on revenue of $58 million. The company reiterated its full-year guidance.
- Gilead Sciences, Inc. (NASDAQ:GILD) won approval from the U.S. Food and Drug Administration for its four-drug combination treatment for HIV, which will be sold under the brand name, Stribild.
- Printer maker Lexmark International Inc (NYSE:LXK) plans to eliminate about 1,700 positions, or about 13 percent of its global workforce, including 1,100 in manufacturing, as part of a restructuring plan to cut costs. The company will also stop making inkjet printers.
- Commercial Vehicle Group, Inc. (NASDAQ:CVGI) said that it has signed a new deal with Chinese automobile and truck manufacturer Anhui Jianghuai Automobile Co., Ltd. (SHA:600418) to supply seating and bunk systems.
- AK Steel Holding Corporation (NYSE:AKS) was down 4 percent in pre-market trading after analysts at UBS AG downgraded the stock to “sell” from “neutral” with a target price of $4.
- Interconnect products company Amphenol Corporation (NYSE:APH) was lowered by analysts at Bank of America to “neutral” from “buy.”
- Mining stocks were among the biggest losers in London trading, with Kazakhmys plc (LON:KAZ) down 2.5 percent and Vedanta Resources plc (LON:VED) slipping 2 percent. Eurasian Natural Resources Corporation (LON:ENRC) lost 3.1 percent, while Anglo American plc (LON:AAL) traded 1 percent lower. Antofagasta plc (LON:ANTO) eased 1.2 percent, as Rio Tinto plc (ADR) (NYSE:RIO) (LON:RIO) (ASX:RIO) fell 1.6 percent.
- · French bank Credit Agricole SA (EPA:ACA) reported a 67 percent drop in second quarter profit on losses at its troubled Greek business and a write-down of its stake in Italian lender, Intesa Sanpaolo SpA (BIT:ISP). Quarterly net profit came in at 111 million euros ($138.74 million), above analyst forecasts of a net loss of 6.2 million euros. Revenue declined 14 percent to 4.75 billion euros.
- Security firm G4S plc (LON:GFS) slumped 2.6 percent after it said that it booked a 50 million pounds ($79 million) loss on its London Olympics Games contract.
- Philippine Airlines, the country’s flag carrier, signed a $7 billion deal to buy 54 jets from EADS NV (EPA:EAD) unit Airbus.
- AstraZeneca plc (ADR) (NYSE:AZN) (LON:AZN) has named former chief executive of Genentech, Pascal Soriot, as its new chief executive officer. He will replace David Brennan, who quit in April following shareholder pressure over profit warnings.
- Deutsche Lufthansa AG (ETR:LHA) (FRA:LHA) was trading 1.6 percent lower after German labor union UFO said it is preparing for strikes after negotiations with the airline broke down.
- Wind-turbine maker Vestas Wind Systems A/S (CPH:VWS) jumped to a three-month high after the Danish company said it is in talks with Japan’s Mitsubishi Heavy Industries, Ltd. (TYO:7011) to form a potential strategic cooperation.
- British home-improvement retailer Kingfisher plc (LON:KGF) was down 3 percent after analysts at Bank of America Merrill Lynch downgraded the stock to “underperform” from “buy.”
- Chinese automaker BYD Company Limited (HKG:1211) (SHE:002594), backed by billionaire investor Warren Buffett’s Berkshire Hathaway Inc. (NYSE:BRK.A) (NYSE:BRK.B), ended 1.8 percent lower in Hong Kong after reporting a 94 percent drop in first-half earnings, dragged down by losses at its solar-cells business.
- Foxconn International Holdings Limited (HKG:2038), the world’s biggest contract mobile phone maker, reported a first half net loss of $226 million, compared to a loss of $18 million a year earlier, amid lower than expected orders from key clients, such as Nokia Corporation (ADR) (NYSE:NOK).
- Hong Long-listed luggage maker Samsonite International S.A. (HKG:1910) said first-half profit soared 263 percent from a year earlier, to $90.1 million, from $24.8 million during the same period a year ago, while net sales rose to a record $846.7 million, boosted by strong growth in Asia and North America.
- Chinese hypermarket chain, Sun Art Retail Group Ltd (HKG:6808), reported a 75 percent rise in first-half net profit to 1.37 billion yuan ($215.52 million), from 784 million yuan a year earlier. Revenue for the period increased to 39.4 billion yuan, from 34.5 billion yuan in the same period last year.
- Midsized Japanese lender Aozora Bank Ltd (TYO:8304), majority-owned by New York-based private equity group, Cerberus Capital Management, surged 14 percent in Tokyo trading, after it said it would spend 227.6 billion yen ($2.9 billion) over the next ten years to repay about 180 billion yen in public funds.
- Baoshan Iron & Steel Co., Ltd. (SHA:600019), China’s biggest steelmaker, said first-half net profit jumped more than 89 percent from a year earlier, helped by a sale of some of its stainless steel and special steel assets, but revenue declined 12 percent. The Shanghai-listed company also announced plans to spend up to 5 billion yuan ($786.6 million) to buy back shares.
- Australian gold miner Newcrest Mining Limited (ASX:NCM) ended 1.9 percent lower after it said it was forced to suspend operations at its Lihir mine in Papua New Guinea amid a dispute with landowners.
- Japanese electric utilities Kansai Electric Power Co Inc (TYO:9503) and Chubu Electric Power Company,Incorporate (TYO:9502) closed significantly lower in Tokyo after analysts at Credit Suisse downgraded the stocks to “neutral” from “outperform.”
Economic Calendar for Tuesday, August 28, 2012:
07:45 A.M. ET: ICSC-Goldman Store Sales (Week ending Saturday, August 25, 2012)
08:55 A.M. ET: Redbook (Week ending Saturday, August 25, 2012)
09:00 A.M. ET: S&P/Case-Shiller Home Price Indices (YoY) (June)
10:00 A.M. ET: Consumer Confidence (August)
10:00 A.M. ET: Richmond Fed Manufacturing Index (August)
11:30 A.M. ET: 4-Week Bill Auction
01:00 P.M. ET: 2-Yr Note Auction