Morning Market Update
Every morning we put out a report with the latest news in global stock markets, company news, and global economic news. In focus for 9/7/2012 stocks including; AAPL, P, COO, GLEN, XTA, NMR, CS, EA, GME, NWS, TM, unemployment numbers and market numbers.
Relying On Old-Fashioned Stock Picking, Lee Ainslie Reports His “Strongest Quarter” Ever
Lee Ainslie's Maverick Fund USA enjoyed its "strongest quarter in the fund's history" during the three months to the end of June. According to a copy of the firm's second-quarter letter to investors, which ValueWalk has been able to review, Maverick Fund USA gained 18% in the second quarter. Following this performance, the fund was Read More
- US: Dow Futures: 13290.00 (0.11%), S&P 500 Futures: 1433.60 (0.18%), NASDAQ Futures: 2828.25 (0.10%)
- Europe: CAC: 3544.25 (0.97%), DAX: 7219.72 (0.73%), FTSE: 5790.44 (0.23%).
- Asia-Pacific: Australia: 4325.80 (0.30%), China: 2127.76 (3.56%), Hong Kong: 19802.16 (2.99%), India: 5342.10 (1.98%), Japan: 8871.65 (2.15%).
- Metals: Gold: 1698.50 (-0.42%), Silver: 32.42 (-0.78%), Copper: 3.59 (2.00%)
- Energy: Crude Oil: 95.92 (0.41%), Natural Gas: 2.74 (-1.12%)
- Commodities: Corn: 8.00 (0.22%), Soya Bean: 17.36 (-0.59%), Wheat: 8.96 (0.53%)
- Currency: EUR/USD: 1.2770 (1.10%), GBP/USD: 1.5987 (0.35%), USD/JPY: 78.2600 (-0.76%)
- 10 year US Treasury: 1.613% (-0.065)
Financial and Economic News Update
U.S. stock-index futures lose steam: U.S. stock-index futures came off highs following a disappointing jobs report. Non-farm payrolls increased 96,000 in August, trailing expectations for an increase of 125,000, according to the Labor Department. Unemployment rate fell to 8.1 percent from 8.3 percent, against expectations that the rate would hold at 8.3 percent. The Dow Jones industrial average, the S&P 500 and the NASDAQ were all trading marginally in the green.
European markets trading in the green: European markets are up in trade today after Thursday’s rally following European Central Bank’s announcement of sovereign bond purchases. The German DAX (INDEXDB:DAX) is trading 0.7 percent higher at 7219.72, the FTSE 100 (INDEXFTSE:UKX) gained 0.2 percent at 5790.44 and the CAC 40 (INDEXEURO:PX1) surged 1 percent to 3544.25. The euro zone blue-chip ESTX 50 PR.EUR (INDEXSTOXX:SX5E) (Euro Stoxx 50) was trading 1.4 percent higher.
Asian markets end higher: Asian markets closed higher on Friday, with Japan’s NIKKEI 225 (INDEXNIKKEI:NI225) closing 2.2 percent higher at 8871.65 points. The HANG SENG INDEX (INDEXHANGSENG:HSI) ended up 3.1 percent on the day and 1.6 percent this week at 19,802.2, while the SSE Composite Index (SHA:000001) (Shanghai Composite Index) jumped 3.7 percent. The S&P/ASX 200 (INDEXASX:XJO) index gained 12.9 points to 4,327.8. The benchmark Indian 30-share BSE SENSITIVE (INDEXBOM:SENSEX) index ended up 2 percent.
Company News Update
- Apple Inc. (NASDAQ:AAPL) is planning to start its own custom radio service similar to the popular one operated by Pandora Media Inc (NYSE:P), The Wall Street Journal reported.
- Gaming stocks Activision Blizzard, Inc. (NASDAQ:ATVI), Electronic Arts Inc. (NASDAQ:EA) and GameStop Corp. (NYSE:GME) are likely to be in focus today after market research group NPD reported that industry sales declined 20 percent in August compared to the same period last year.
- Athletic apparel retailer Lululemon Athletica inc. (NASDAQ:LULU) (TSE:LLL) reported second quarter earnings excluding certain items of 34 cents per share, three cents above the average analysts’ estimates. Revenue increased 33 percent to $282.6 million, while same-store sales rose 15 percent. The Canadian company also forecast full-year profit above Street estimates.
- Computer maker Dell Inc. (NASDAQ:DELL) announced its first quarterly dividend, at 8 cents per share per quarter, payable on October 22.
- · Brady Corp (NYSE:BRC) raised its quarterly dividend to 19 cents per share, payable October 31 to shareholders of record October 10. The company also announced a stock-buyback authorization for up to 2 million Class A shares.
- Contact lens maker The Cooper Companies, Inc. (NYSE:COO) posted third quarter earnings excluding one-time items of $1.45 a share on revenue of $378 million that beat estimates of earnings excluding items of $1.29 a share on sales of $368 million. The company raised its full-year earnings and sales outlook.
- Radiation oncology company Accuray Incorporated (NASDAQ:ARAY) reported a fourth-quarter net loss of $20.3 million or 28 cents per share, and warned that revenue for the first quarter of fiscal 2013 will be substantially below revenue generated during the same period last year.
- · Mobile-audio technology company Audience Inc (NASDAQ:ADNC) said that Apple Inc. (NASDAQ:AAPL) is unlikely to use its technology in its next-generation iPhone.
- Networking software and equipment maker Infoblox Inc (NYSE:BLOX) forecast full-year earnings of between 4 cents and 7 cents a share that trailed analysts’ estimates of earnings of 11 cents per share.
- The board of New York-based real estate investment trust AG Mortgage Investment Trust Inc (NYSE:MITT) raised its quarterly dividend by 10 percent to 77 cents a share, payable October 26 to holders of record as of September 18.
- Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR) soared 3 percent after Lazard Capital initiated coverage on the coffee producer’s stock with a “buy” rating.
- Travel services company’s Priceline.com Inc (NASDAQ:PCLN) jumped 1.5 percent in pre-market trading after analysts at Nomura upgraded the stock to “buy” from “neutral.”
- Chipmaker Nvidia Corporation (NASDAQ:NVDA) has been downgraded to “hold” from “buy” at Cantor Fitzgerald with a target price of $13.50, down from $20.
- Drugmaker Zimmer Holdings, Inc. (NYSE:ZMH) has been raised to “outperform” from “market perform” by analysts at Bernstein.
- Commodities giant Glencore International Plc (LON:GLEN) raised its offer for Anglo-Swiss miner Xstrata PLC (LON:XTA) by 9 percent in a bid to overcome opposition from investors including Qatar’s sovereign wealth fund.
- Major investment banks, including Credit Suisse Group AG (ADR) (NYSE:CS), UBS AG (USA) (NYSE:UBS) and Nomura Holdings, Inc. (ADR) (NYSE:NMR) (TYO:8604) are planning to cut jobs in Europe amid drastic slowdown in revenues from the region and tighter regulation, according to a Financial Times report.
- Antony Jenkins, the new chief executive of British bank Barclays PLC (ADR) (NYSE:BCS) (LON:BARC) is likely to announce a detailed restructuring plan early next year, which could see write-downs of underperforming units.
- Deutsche Post AG (ETR:DPW) (FRA:DPW) tumbled 3.7 percent after Germany’s state-owned development bank, and largest shareholder, KfW, sold 60 million shares for 15.40 euros ($19.46) per share.
- French bank Credit Agricole SA (EPA:ACA) soared 7 percent after analysts at J.P. Morgan Cazenove upgraded the stock to “neutral” from “underweight.”
- German carrier Deutsche Lufthansa AG (ETR:LHA) (FRA:LHA) canceled more than 1,000 flights amid the strike by cabin crew following collapse of talks.
- Mailroom equipment company Neopost SA (EPA:NEO) slumped 6 percent after reporting a 2.2 percent decline in second-quarter sales from a year earlier, to 260.7 million euros ($331 million), based on constant exchange rates.
- Continental AG (ETR:CON) (FRA:CON), Europe’s second-largest auto-parts maker, fell 1.1 percent after UBS AG cut its recommendation on the stock to “neutral” from “buy”, citing potential for limited margin expansion in the near term.
- British-based engineering group Meggitt plc (LON:MGGT) gained 1.2 percent after Citigroup Inc. raised its recommendation on the stock to “buy” from “neutral.”
- Rupert Murdoch’s News Corp (NASDAQ:NWSA) (NASDAQ:NWS) tabled a revised 1.94 billion Australian dollar ($2 billion) bid for Sydney-based Consolidated Media Holdings Limited (ASX:CMJ), as the media giant seeks to garner a greater share of the nation’s pay-TV market.
- Apple Inc. (NASDAQ:AAPL) has reduced its order for semiconductor components for its sixth-generation iPhone from Samsung Electronics, instead picking Toshiba Corp (TYO:6502), Elpida Memory Inc (TYO:6665) and other competitors as its suppliers, Reuters reported.
- Toyota Motor Corporation (ADR) (NYSE:TM) (TYO:7203) gained 3.4 percent following a report in the Nikkei business daily that the car maker is looking to double its China sales by 2015.
- Hong Kong-based insurer AIA Group Ltd (HKG:1299) rose the most in eleven months after former parent, American International Group, Inc. (NYSE:AIG) raised $2.02 billion through a partial stake sale.
- Japan’s biggest brokerage Nomura Holdings, Inc. (ADR) (NYSE:NMR) (TYO:8604) is planning to buy an Asian investment bank or brokerage to increase exposure in the fast growing region, Chief Executive Officer Koji Nagai told Bloomberg News.
- Japanese utilities Hokkaido Electric Power Co., Inc. (TYO:9509) and Chubu Electric Power Company,Incorporate (TYO:9502) slumped in early trade, before recovering to close higher, after the ruling Democratic Party of Japan said it wants to gradually move toward a nuclear-free Japan in the coming decades.
- China Petroleum & Chemical Corp. (ADR) (NYSE:SNP) (HKG:0386) (SHA:600028) and ENN Energy Holdings Ltd (HKG:2688) have extended their $2.2 billion offer for piped-gas distributor, China Gas Holdings Ltd. (HKG:0384), until October 15.
- Struggling state-run carrier Air India took delivery of its first 787-800 Dreamliner at The Boeing Company (NYSE:BA) final assembly plant at Charleston, after a four-year production delay.
- Taiwanese smart phone maker HTC Corp (TPE:2498) closed 3.2 percent higher after winning a favorable ruling in a patent infringement case in the U.S.
Economic Calendar for Friday, September 07, 2012:
08:30 A.M. ET: Non-farm Payrolls (August)
08:30 A.M. ET: Unemployment Rate (August)
08:30 A.M. ET: Average Hourly Earnings (MoM) (August)
08:30 A.M. ET: Average Hourly Earnings (YoY) (August)
08:30 A.M. ET: Average Weekly Hours (August)
03:00 P.M. ET: Treasury STRIPS