* US: Dow Futures: 13269.00 (0.13%), S&P 500 Futures: 1426.10 (0.15%), NASDAQ Futures: 2672.25 (0.31%)
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* Europe: CAC: 3502.08 (-0.07%), DAX: 7361.86 (-0.26%), FTSE: 5891.27 (-0.08%).
* Asia-Pacific: Australia: 4541.00 (-0.66%), China: 2132.76 (0.21%), Hong Kong: 21697.55 (0.67%), India: 5717.15 (0.58%), Japan: 9010.71 (0.09%).
* Metals: Gold: 1726.00 (0.12%), Silver: 32.21 (0.37%), Copper: 3.63 (-0.11%)
* Energy: Crude Oil: 90.23 (0.20%), Natural Gas: 3.59 (-0.64%)
* Commodities: Corn: 7.64 (0.39%), Soya Bean: 15.52 (1.01%), Wheat: 8.80 (0.92%)
* Currency: EUR/USD: 1.3056 (0.25%), GBP/USD: 1.6032 (0.17%), USD/JPY: 79.8400 (0.66%)
* 10 year US Treasury: 1.801% (0.038)
Financial and Economic News Update
U.S. stock-index futures gain: U.S. stock-index futures are pointing to a higher open on Monday following the worst one-day drop last Friday in almost four months. Positive election results from Spain also helped lift sentiment. Spanish Prime Minister Mariano Rajoy secured victory in his home region of Galicia. Yahoo! Inc. (NASDAQ:YHOO) and Texas Instruments Incorporated (NASDAQ:TXN) are slated to report earnings after the closing bell.
European markets trading modestly lower: European markets are trading lower on Monday with the German DAX (INDEXDB:DAX) down 0.3 percent at 7361.86, the FTSE 100 (INDEXFTSE:UKX) lost 0.1 percent to 5891.27 and the CAC 40 (INDEXEURO:PX1) edged 0.07 percent lower at 3502.08. The euro zone blue-chip ESTX 50 PR.EUR (INDEXSTOXX:SX5E) (Euro Stoxx 50) was trading largely unchanged.
Asian markets end mostly higher: Asian markets closed higher on Monday with the HANG SENG INDEX (INDEXHANGSENG:HIS) ending up 0.7 percent at 21,697.6, while the SSE Composite Index (SHA:000001) (Shanghai Composite Index) gained 0.2 percent. Japan’s NIKKEI 225 (INDEXNIKKEI:NI225) gained 0.1 percent to 9,010.71, above the psychologically key 9,000 level. The S&P/ASX 200 (INDEXASX:XJO) index closed down 0.7 percent to 4,541. The benchmark Indian 30-share BSE SENSITIVE (INDEXBOM:SENSEX) index rose 0.58 percent.
Company News Update
* Caterpillar Inc. (NYSE:CAT) reported third quarter earnings excluding items of $2.54 per share that beat the average analysts’ estimate of $2.22 a share. Revenue for the quarter came in at $16.45 billion, missing estimates of $16.79 billion. The construction and mining equipment maker cut its full-year profit forecast.
* Peabody Energy Corporation (NYSE:BTU) posted third quarter adjusted profit of 51 cents per share that easily beat Street estimates of 33 cents. Revenue increased 6 percent to $2.06 billion, from $1.98 billion a year ago, also topping estimates of $1.97 billion.
* Pfizer Inc. (NYSE:PFE) has agreed to acquire privately held NextWave Pharmaceuticals in a deal worth as much as $700 million.
* Hasbro, Inc. (NASDAQ:HAS) reported third quarter net profit of $164.9 million, or $1.24 a share that topped the average analysts’ estimate of $1.20 a share. Sales dipped 2 percent to $1.35 billion, trailing estimates of $1.38 billion.
* Freeport-McMoRan Copper & Gold Inc. (NYSE:FCX) said third-quarter profit dropped to $824 million, or 86 cents a share, from $1.05 billion, or $1.10 a share, in the same period last year. Revenue fell to $4.42 billion from $5.2 billion, a year earlier. Analysts had expected earnings 73 cents a share on revenue of $4.39 billion
* Branded-apparel maker V.F. Corporation (NYSE:VFC) reported third quarter earnings excluding certain items of $3.52 a share that beat the average analysts’ estimate of $3.49 a share. Revenue rose 14 percent to $3.12 billion, but trailed estimates of $3.17 billion. The company raised its quarterly dividend by 21 percent to 87 cents a share.
* SunTrust Banks, Inc. (NYSE:STI) reported third quarter profit of $1.07 billion, or $1.98 per share, up sharply from $211 million, or 39 cents per share, in the year-ago period. Revenue jumped 75 percent to $3.84 billion. Analysts had projected earnings of $1.99 a share on $3.83 billion in revenue.
* Turkey’s national carrier, Turkish Airlines will buy 15 jet airliners from The Boeing Company (NYSE:BA) by 2017, in a deal worth $4.7 billion (3.6 billion euros) at list prices, according to a Reuters report.
* Oil and gas producer Halcon Resources Corp (NYSE:HK) said it pay $700 million in cash and $750 million in stock to buy some assets in the Williston basin from privately held Petro-Hunt LLC.
* Nielsen Hldg NV (NYSE:NLSN) posted third quarter earnings excluding items of 53 cents per share, 3 cents above the average analysts’ estimate. Revenue gained 0.7 percent to $1.42 billion, trailing estimates of $1.44 billion.
* Defense contractor Raytheon Company (NYSE:RTN) has secured a contract to supply thermal weapon sights to the U.S. army in a deal worth about $131 million, according to a Reuters report.
* TransCanada Corporation (USA) (NYSE:TRP) (TSE:TRP) said the restart of the Keystone Pipeline that ships heavy Canadian crude to refineries in the U.S. Midwest would be delayed until Monday.
* Genealogy website Ancestry.com Inc (NASDAQ:ACOM) has agreed to be acquired by an investor group led by Europe-based private equity firm Permira Advisers LLP for $1.6 billion, or $32 per share, the Wall Street Journal reported.
* Regional shopping-mall operator Macerich Co (NYSE:MAC) has agreed to acquire two New York-based malls for about $1.26 billion.
* Digital audio and video technology provider Avid Technology, Inc. (NASDAQ:AVID) forecast a surprise third-quarter adjusted loss of between $3 million to $5 million on revenue of $125 million to $127 million. Analysts are expecting a profit of $5.74 million on revenue of $145 million.
* Analysts at Nomura cut their price target on the General Electric Company (NYSE:GE) to $24 from $25.
* BB&T Corporation (NYSE:BBT) was up 0.5 percent in pre-market trading after Citigroup upgraded the stock to “buy” from “neutral.”
* Air Products & Chemicals, Inc. (NYSE:APD) was lowered to “neutral” from “buy” by analysts at Bank of America.
* Swiss bank UBS AG (USA) (NYSE:UBS) is to cut between 3,000 and 5,000 jobs as part of a cost-saving plan, while rival Credit Suisse Group AG (ADR) (NYSE:CS) may announce 1,000-2,000 cuts, Swiss weekly Der Sonntag reported.
* Koninklijke Philips Electronics NV (ADR) (NYSE:PHG) (AMS:PHIA) said third-quarter net profit more than doubled to 169 million euros ($220 million) from 74 million euros in the same period a year ago. Sales increased 3.4 per cent to 6.13 billion euros. The Dutch electronics company expects economic headwind winds to affect growth going forward.
* British oil major BP plc (ADR) (NYSE:BP) (LON:BP) agreed to sell its 50 percent stake in Russian joint venture TNK-BP to Rosneft’ NK OAO (MCX:ROSN) for $17.1 billion in cash plus shares.
* Home appliance maker AB Electrolux (STO:ELUX-B) said third quarter net profit increased to 983 million Swedish kronor ($149.3 million), from 826 million
kronor a year earlier. Strong growth in North America and Asia helped offset weakness in Europe. Sales increased to 27.17 billion Swedish kronor from 25.65 billion Swedish kronor, topping estimates of 27.01 billion Swedish kronor.
* Lloyds Banking Group PLC (ADR) (NYSE:LYG) (LON:LLOY) is considering proposals to scrap annual bonuses for its top executives in favor of longer-term incentives, according to a report in The Financial Times.
* German conglomerate Siemens AG (ADR) (NYSE:SI) (ETR:SIE) (FRA:SIE) is planning to sell its solar energy business as part of its cost-saving program, after several attempts to turn the business around failed.
* Swedish truck maker Scania AB (STO:SCV-B) rose 3.6 percent after third-quarter profit dropped 36 percent to 1.5 billion Swedish krona ($0.23 billion), in-line with the average analyst forecast. Sales for the quarter decreased 15 percent to 17.92 billion Swedish krona from 21.13 billion Swedish krona a year earlier.
* German media giant Bertelsmann AG (FRA:BTG4) is considering a bid for Springer Science and Business, the world’s second-largest publisher of scientific journals, the Financial Times reported on Sunday.
* French water and waste utility Veolia Environnement Ve SA (ADR) (NYSE:VE) (EPA:VIE) slumped 2.2 percent in Paris after Suez Environnement Company SA (EPA:SEV), over the weekend, denied a merger between the two firms.
* Rolls-Royce Holding PLC (LON:RR) gained 0.5 percent in London after it said it won a contract to power the U.S. Navy’s future fleet of hovercrafts, known as the Ship-to-Shore Connector.
* Nuclear reactor maker Areva SA (EPA:AREVA) is in exclusive talks with buyout fund Astorg Partners SAS to sell it its U.S. radiation measurement unit Canberra, French daily Les Echos reported.
* British temporary power generation company Aggreko plc (LON:AGK) shed 2 percent after analysts at HSBC Holdings PLC lowered the stock to “underweight” from “neutral.”
* Beleaguered electronics maker Sony Corporation (ADR) (NYSE:SNE) (TYO:6758) fell 0.4 percent in Tokyo after the company said late Friday it will close a factory in central Japan and cut about 2000 jobs as part of a restructuring plan.
* Australian grain handler GrainCorp Limited (ASX:GNC) soared more than 40 percent after it received a 2.68 billion Australian dollars ($2.76 billion) all-cash takeover offer from US agribusiness giant Archer Daniels Midland Company (NYSE:ADM).
* China Mobile Ltd. (ADR) (NYSE:CHL) (HKG:0941), the country’s largest mobile operator, said third quarter net profit climbed 1.3 percent to 31.1 billion yuan ($4.97 billion), from 30.7 billion yuan in the year-ago quarter. Analysts had
forecast a profit of 30.8 billion yuan. Sales rose 6.2 percent to 142.1 billion yuan, from 133.8 billion yuan, a year earlier, topping estimates of 141.7 billion yuan.
* Japanese liquid-crystal displays maker Sharp Corporation (TYO:6753) gained as much as 11 percent after media reported the company is increasing production capacity of its new high-definition power-saving IGZO screens it hopes to sell to major PC manufacturers.
* Diversified manufacturer Mitsubishi Corp (TYO:8058) fell 1.8 percent after the company sliced its full year profit target by 34 percent to 330 billion ($4.1 billion) yen due to a sharper-than-expected fall in commodity prices, and reduced the dividend forecast by 28 percent to 50 yen a share.
* Treasury Wine Estates Ltd (ASX:TWE), the world’s second-largest wine company forecast a drop in fiscal first-half earnings due to poor weather and higher costs, but said it expected a strong recovery in the second half.
* Japanese trading house Marubeni Corporation (TYO:8002) said it will invest around 24 billion yen ($302.6 million) to build an 81.5 megawatts solar plant in the southwestern city of Oita.
* West African-focused iron ore producer Sundance Resources Limited (ASX:SDL) ended 2.9 percent higher in Sydney after Chinese firm Sichuan Hanlong Group secured financing approval for its $1.37 billion takeover offer.
* Real estate company NEXT Co.,Ltd. (TYO:2120) soared 9.5 percent in Tokyo after hiking its operating profit forecast for the six months ended September 30 to 942 million yen ($11.87 million) from a previous forecast of 616 million yen.
* India’s second largest drug maker by sales, Dr. Reddy’s Laboratories Limited (ADR) (NYSE:RDY) (NSE:DRREDDY) (BOM:500124), said it will acquire Dutch specialty pharmaceutical company OctoPlus NV (AMS:OCTO) for 27.39 million euros ($35.69 million) in cash.
* Japanese industrial robotics maker Fanuc Corp (TYO:6954) slid 2.5 percent after analysts at J.P. Morgan Securities downgraded the stock to “neutral” from “overweight” and slashed its target price to 11,500 yen from 15,000 yen.
Economic Calendar for Monday, October 22, 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