- US: Dow Futures: 13263.00 (-0.25%), S&P 500 Futures: 1434.70 (-0.24%), NASDAQ Futures: 2817.25 (-0.20%)
- Europe: CAC: 3504.80 (-0.41%), DAX: 7212.19 (-0.03%), FTSE: 5796.61 (0.03%).
- Asia-Pacific: Australia: 4333.80 (0.18%), China: 2134.89 (0.33%), Hong Kong: 19827.17 (0.13%), India: 5363.45 (0.09%), Japan: 8869.37 (-0.03%).
- Metals: Gold: 1733.00 (-0.43%), Silver: 33.60 (-0.28%), Copper: 3.68 (1.06%)
- Energy: Crude Oil: 96.28 (-0.15%), Natural Gas: 2.68 (-0.26%)
- Commodities: Corn: 8.02 (0.00%), Soya Bean: 17.39 (-0.76%), Wheat: 9.10 (1.57%)
- Currency: EUR/USD: 1.2780 (0.31%), GBP/USD: 1.5969 (0.37%), USD/JPY: 78.2550 (0.03%)
- 10 year US Treasury: 1.682% (0.013)
Financial and Economic News Update
U.S. stock-index futures slide: U.S. stock-index futures are pointing to a lower open on Monday, following last week’s rally that saw stocks jump to multi-year highs. Sentiment was also affected by weak Chinese data. Chinese exports grew by 2.7 percent year-on-year in August, while imports fell 2.6 percent from the year-ago period. The Dow Jones industrial average, the S&P 500 and the NASDAQ were all trading marginally in the red.
European markets trading largely unchanged: European markets are flat in trade today amid investor caution ahead of a week filled with key political events in Europe. The German DAX (INDEXDB:DAX) is trading 0.0.3 percent lower at 7212.19, the FTSE 100 (INDEXFTSE:UKX) gained 0.03 percent at 5796.61 and the CAC 40 (INDEXEURO:PX1) fell 0.4 percent to 3504.80. The euro zone blue-chip ESTX 50 PR.EUR (INDEXSTOXX:SX5E) (Euro Stoxx 50) was trading 0.5 percent lower.
Asian markets end mostly higher: Asian markets closed higher on Monday, buoyed by hopes for fresh stimulus measures from the U.S. Federal Reserve. Japan’s NIKKEI 225 (INDEXNIKKEI:NI225) closed at 8869.37 points. The HANG SENG INDEX (INDEXHANGSENG:HSI) ended up 0.1 percent, while the SSE Composite Index (SHA:000001) (Shanghai Composite Index) rose 0.3 percent. The S&P/ASX 200 (INDEXASX:XJO) index gained 8 points to 4,333.8. The benchmark Indian 30-share BSE SENSITIVE (INDEXBOM:SENSEX) index ended up 0.1 percent.
Company News Update
- The U.S. Treasury Department will sell $18 billion worth of shares in insurer American International Group, Inc. (NYSE:AIG), making the government a minority investor for the first time since its 2008 bailout.
- Agricultural and construction-equipment retailer Titan Machinery Inc. (NASDAQ:TITN) reported second-quarter net income of $5.2 million, or 25 cents per share, on revenue of $410.1 million. Analysts had forecast earnings of 43 cents per share on revenue of $401.9 million. The company cut its full-year profit forecast.
- Intel Corporation (NASDAQ:INTC), which lowered its third-quarter sales forecast on Friday is down 0.7 percent in pre-market trading after the Wall Street Journal reported that sales from developing countries may be declining faster than what the company and analysts are expecting.
- Personal-computer maker Hewlett-Packard Company (NYSE:HPQ) said in a regulatory filing that job cuts under its reorganization plan announced in May is likely to reach 29,000, against earlier expectations of 27,000.
- General Motors Company (NYSE:GM) has asked dealers not to sell about 60,000 2013 models, because of a software glitch in its OnStar communication system.
- Hong Kong-based fashion retailer Michael Kors Holdings Ltd (NYSE:KORS) is down 5 percent in pre-market trading after announcing that some of its investors will sell 20 million ordinary shares of the company.
- Troubled truck-maker Navistar International Corp (NYSE:NAV) is the target of more criticism from activist investor Carl Icahn, who slammed the company for naming Lewis Campbell as chief executive without consulting major shareholders. Icahn also issued a letter to the Board of Directors urging them to offer four seats to shareholders immediately.
- J.C. Penney Company, Inc. (NYSE:JCP) has decided to make permanent its recent promotion that gives children free haircuts every Sunday, starting November 4, after receiving an overwhelming response last month, when 1.6 million children availed the offer.
- Transocean LTD (NYSE:RIG), the world’s largest offshore driller, has agreed to sell 38 shallow-water drilling rigs to Swiss-based Shelf Drilling International Holdings Ltd. for about $855 million in cash.
- Energy company Kinder Morgan Inc (NYSE:KMI) has agreed to pay $110 million to settle lawsuits by investors related to its $21 billion acquisition of gas- pipeline owner El Paso Corp.
- Contract drilling company Rowan Companies PLC (NYSE:RDC) has exercised its option to build a fourth ultra-deepwater drill ship with Hyundai Heavy Industries Co Ltd at a cost of about $620 million.
- Atlanta-based home builder Beazer Homes USA, Inc. (NYSE:BZH) is asking its shareholders to approve a one-for-five reverse stock split, the vote for which will take place at a special meeting on October 11.
- Sprint Nextel Corporation (NYSE:S) is up 1.2 percent after analysts at Nomura raised the stock to “buy.”
- Illinois-based energy producer Exelon Corporation (NYSE:EXC) fell 1 percent after Citigroup downgraded the stock to “sell.”
- Regions Financial Corporation (NYSE:RF) jumped 2 percent after analysts at Goldman Sachs upgraded the stock to “conviction buy” from “buy,” citing strong credit recovery and improved fundamentals.
- British oil giant BP plc (ADR) (NYSE:BP) (LON:BP) has agreed to sell some of its offshore oil fields in the Gulf of Mexico to U.S. oil explorer and producer Plains Exploration & Production Company (NYSE:PXP) for $5.55 billion.
- Commodities trader Glencore International Plc (LON:GLEN) has confirmed its increased $36 billion all-share bid for Anglo-Swiss diversified miner Xstrata PLC (LON:XTA) on Monday, but warned it would not improve the terms of the deal further.
- British lender Royal Bank of Scotland Group plc (ADR) (NYSE:RBS) (LON:RBS) is in talks with regulators to settle allegations of manipulating the London Interbank Offered Rate, according to a report in the Financial Times.
- Kweku Adoboli, a former trader at Swiss bank UBS AG (USA) (NYSE:UBS) will go on trial in London this week in a case involving losses to the tune of $2.3 billion (1.4 billion pounds) resulting from unauthorized trades.
- German carrier Deutsche Lufthansa AG (ETR:LHA) (FRA:LHA) gained 2.4 percent after a strike called by the labor union UFO ended.
- Africa-focused exploration company Chariot Oil & Gas Limited (LON:CHAR) said its Kabeljou exploration well in the Orange basin off-shore Namibia will be plugged and abandoned as preliminary tests showed no commercial hydrocarbons.
- AstraZeneca plc (ADR) (NYSE:AZN) (LON:AZN) fell 1 percent in London trading after analysts at Bank of America Merrill Lynch downgraded the stock to “underperform” from “neutral.”
- French electricity major Alstom SA (EPA:ALO) slumped 1.1 percent after Goldman Sachs Group Inc. lowered the stock to “neutral” from “buy.”
- Dutch consumer electronics and health-care products giant Koninklijke Philips Electronics NV (ADR) (NYSE:PHG) (AMS:PHIA) dropped 2.4 percent after analysts at Goldman Sachs Group Inc. downgraded the stock to “neutral” from “buy.” Credit Suisse Group AG also cut its rating to “neutral.”
- BHP Billiton Limited (ADR) (NYSE:BHP) (ASX:BHP) (LON:BLT) said it will stop production at the loss-making Gregory open-cut mine in Queensland amid low coal prices and rising costs. Separately, Xstrata PLC (LON:XTA) announced it will slash 600 jobs across its Australian coal operations.
- China Construction Bank Corporation (HKG:0939) (SHA:601939), the country’s second-largest lender by assets, fell 2.1 percent in Hong Kong after an unnamed investors sold a $530 million stake in the state-owned bank at a 2 percent discount to Friday’s closing price.
- Japan Airlines Co.’s 663 billion yen ($8.5 billion) initial public offering was priced at the top of a range, in the biggest share sale this year after Facebook Inc (NASDAQ:FB).
- Chinese consumer electronics and home appliances company Haier Electronics Group Co., Ltd. (HKG:1169) is looking at a takeover of New Zealand’s largest appliance manufacturer, Fisher and Paykel Appliances, in which it currently owns a 20 percent stake, Reuters reported.
- Fortescue Metals Group Limited (ASX:FMG), the world’s fourth-largest iron-ore producer, soared 7.3 percent in Sydney after reporting an 11.8 percent rise in iron ore shipments from Port Hedland to China in August.
- Japan’s largest brokerage Nomura Holdings, Inc. (ADR) (NYSE:NMR) (TYO:8604) climbed 2.9 percent after chief executive Koji Nagai told the Nikkei business daily that the company plans to scale down its European operations and focus more on its Asian business.
- Australian supermarket chain Woolworths Limited (ASX:WOW) slumped 3.6 percent after its stock went ex-dividend.
- Indian software exporter Infosys Ltd ADR (NASDAQ:INFY) (NSE:INFY) has agreed to buy Swiss management consultancy firm Lodestone Holding AG for 330 million Swiss francs ($349 million) in cash.
- Building products maker Boral Limited (ASX:BLD) fell 0.9 percent in Sydney after naming Mike Kane as its new chief executive officer.
Economic Calendar for Monday, September 10, 2012:
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
03:00 P.M. ET: Consumer Credit Change (July)