Every morning we put out a news report with the latest news in global stock markets, company news, and global economic news.
Morning Market Update
Michael Mauboussin: Here’s what active managers can do
The debate over active versus passive management continues as trends show the ongoing shift from active into passive funds. Q2 2020 hedge fund letters, conferences and more At the Morningstar Investment Conference, Michael Mauboussin of Counterpoint Global argued that the rise of index funds has made it more difficult to be an active manager. Drawing Read More
• US: Dow: 12800.00 (0.28%), S&P 500: 1380.10 (0.32%), NASDAQ: 2593.53 (0.50%)
• Europe: CAC: 3420.29 (-0.09%), DAX: 7187.47 (0.33%), FTSE: 5792.03 (0.39%).
• Asia-Pacific: Australia: 4448.00 (-0.31%), China: 2079.27 (0.49%), Hong Kong: 21430.30 (0.21%), India: 5683.70 (-0.04%), Japan: 8676.44 (-0.94%).
• Metals: Gold: 1734.40 (0.20%), Silver: 32.54 (-0.17%), Copper: 3.46 (0.30%)
• Energy: Crude Oil: 85.57 (-0.58%), Natural Gas: 3.52 (0.34%)
• Commodities: Corn: 7.40 (-0.10%), Soya Bean: 14.26 (-2.98%), Wheat: 8.77 (-1.58%)
• Currency: EUR/USD: 1.2722 (0.09%), GBP/USD: 1.5876 (-0.13%), USD/JPY: 79.3800 (-0.14%)
• 10 year US Treasury: 1.606% (-0.000)
Financial and Economic News Update
U.S. stock-index futures rise: U.S. stock-index futures are pointing to a higher open on Monday following better than expected economic data from China. Chinese exports hit a five-month high of in October, rising 11.6 percent year on year, topping expectations for a 9 percent rise. Trading volume is expected to be light during the session with the bond market and banks closed for Veteran’s Day.
European markets trading mixed: European markets are mixed in trade today, with the German DAX (INDEXDB:DAX) gaining 0.3 percent to 7187.47, the FTSE 100 (INDEXFTSE:UKX) up 0.4 percent to 5792.03 and the CAC 40 (INDEXEURO:PX1) edging 0.1 percent lower to 3420.29. The euro zone blue-chip ESTX 50 PR.EUR (INDEXSTOXX:SX5E) (Euro Stoxx 50) was trading largely unchanged.
Asian markets end mostly lower; Chinese shares post modest gains: Asian markets closed lower on Monday with the HANG SENG INDEX (INDEXHANGSENG:HIS) up 0.2 percent at 21,430.3, while the SSE Composite Index (SHA:000001) (Shanghai Composite Index) gained 0.5 percent. Japan’s NIKKEI 225 (INDEXNIKKEI:NI225) lost 0.9 percent to 8,676.4. The S&P/ASX 200 (INDEXASX:XJO) index fell 14 points to 4,448. The benchmark Indian 30-share BSE SENSITIVE (INDEXBOM:SENSEX) index fell 0.1 percent.
Company News Update
• D.R. Horton, Inc. (NYSE:DHI) said fourth quarter profit nearly tripled to $100.1 million, or 30 cents a share, from $35.7 million, or 11 cents, in the year-ago period. Revenue rose to $1.3 billion from $1.07 billion a year earlier. Analysts were expecting the homebuilder to earn 28 cents a share on revenue of $1.37 billion.
• Paint maker Sherwin-Williams Company (NYSE:SHW) will buy privately held Mexican company Consorcio Comex, S.A. de C.V. for about $2.34 billion in cash, including debt.
• Beazer Homes USA, Inc. (NYSE:BZH) said fourth quarter loss widened to $66.2 million, or $2.82 a share, from a year-ago loss of $43.2 million, or $2.91 a share. Revenue increased 11 percent to $370.9 million. Analysts had projected a loss of $1.22 a share on revenue of $335.1 million.
• Leucadia National Corp. (NYSE:LUK) has agreed to buy investment bank Jefferies Group, Inc. (NYSE:JEF) for about $2.6 billion in stock.
• Research In Motion Limited (USA) (NASDAQ:RIMM) (TSE:RIM) said it will unveil its BlackBerry 10 smart phones on January 30.
• Real estate investment trust Annaly Capital Management, Inc. (NYSE:NLY) has offered to buy the rest of Crexus Investment Corp (NYSE:CXS) in a cash deal that values the specialty finance company at about $958 million.
• Goldman Sachs Group, Inc. (NYSE:GS) in settlement talks with the U.S. Commodity Futures Trading Commission over allegations of concealing an $8.3 billion futures position, the Financial Times reported on Monday.
• Target Corporation (NYSE:TGT) is planning to open its stores at 9 p.m. on Thanksgiving, three hours earlier than a year ago, to offer extended hours during the holiday season.
• Texas billionaire Harold Simmons’s Titanium Metals Corp (NYSE:TIE) surged 43 percent in early morning trade after Precision Castparts Corp. (NYSE:PCP) agreed to buy the industrial parts maker for $2.9 billion in cash.
• Energy company Hess Corp. (NYSE:HES) is exploring the sale of its Russian subsidiary Samara-Nafta.
• Celgene Corporation (NASDAQ:CELG) said its pancreatic cancer drug Abraxene improved survival rates in a phase III study.
• Pebblebrook Hotel Trust (NYSE:PEB) lowered its current quarter and full-year outlook citing the impact from super storm Sandy. The company now expects adjusted funds from operations of between 24 cents to 28 cents for the fourth quarter, and between $1.09 to $1.12 for the year.
• Gilead Sciences, Inc. (NASDAQ:GILD) jumped 10 percent in pre-market trading after reporting positive results for a drug combination designed to treat genotype 1 chronic hepatitis C.
• Caterpillar Inc. (NYSE:CAT) dropped 0.6 percent in early morning trade after analysts at JPMorgan Chase & Co. cut the stock to “neutral” from “overweight.”
• Morgan Stanley has upgraded travel website operator Tripadvisor Inc (NASDAQ:TRIP) to “overweight” from “underweight.”
• The Walt Disney Company (NYSE:DIS) is up 1.4 percent in pre-market trading after analysts at Citigroup raised the stock to “buy” from “neutral.”
• Goldman Sachs has downgraded Garmin Ltd. (NASDAQ:GRMN) to “sell” from “neutral.”
• British bank Barclays PLC (ADR) (NYSE:BCS) (LON:BARC) is being probed by US authorities into whether it made improper payments to secure a banking licence in Saudi Arabia, according to a report in The Financial Times
• Rio Tinto plc (ADR) (NYSE:RIO) (LON:RIO) (ASX:RIO) dropped 0.5 percent in London after workers at a mine in eastern Australia threatened to go on a 36-hour strike from Tuesday morning.
• Telecom Italia S.p.A (ADR) (NYSE:TI) (BIT:TIT), Italy’s biggest telecom group, soared 5 percent after the company confirmed Egyptian billionaire Naguib Sawiris offered to purchase a stake in the company
• Daimler AG (ETR:DAI) (FRA:DAI) said Chinese sales of its Mercedes-Benz vehicles increased 8 percent to 169,070 units in the January-October period from a year earlier.
• Deutsche Telekom AG (ETR:DTE) (FRA:DTE) said private equity firm The Blackstone Group L.P. (NYSE:BX) has cut its stake in the German telecoms firm to 2.93 percent on November 6 from 4.44 percent in early August.
• French advertising firm Publicis Groupe SA (EPA:PUB) jumped 3 percent after organic revenue growth in October rose by more than 7 percent, helped by strong performance in the U.S.
• Deutsche Wohnen AG (ETR:DWN) (FRA:DWN), Germany’s largest residential landlord by market value, reported better than expected earnings and raised its forecast for full-year funds from operations.
• Nordic airline SAS AB (STO:SAS) swung to third-quarter profit of 1.32 Swedish kronor (20 cents) a share from a loss of 0.65 kronor in the year-ago period. The company also outlined plans to cut jobs and sell assets as part of a restructuring program.
• Cobham plc (LON:COB), the world’s largest maker of airborne-refueling equipment, plunged 8 percent in London after forecasting weaker sales and profitability next year.
• Taiwanese smart phone maker HTC Corp (TPE:2498) jumped 6.9 percent after announcing a global patent settlement and licensing agreement with Apple Inc. (NASDAQ:AAPL).
• QBE Insurance Group Limited (ASX:QBE), Australian biggest insurer by market value, tumbled 8.3 percent after cutting its full-year profit outlook on super storm Sandy and large catastrophe claims. The insurer said it expects profit margin to drop to around 8 percent this year, down from an earlier forecast of about 12 percent.
• Industrial and Commercial Bank of China (HKG:1398) (SHA:601398), the world’s biggest lender by market value, has secured approval from Argentina’s central bank to take control of the local operations of South Africa’s Standard Bank following a $600 million deal last year.
• Hon Kong-listed United Company Rusal Plc (HKG:0486), the world’s top aluminum producer, swung to a third-quarter net loss, but said it expects orders to pick up towards the year-end amid signs of turnaround in China.
• Japan’s Mazda Motor Corporation (TYO:7261) gained 1 percent after the carmaker and Toyota Motor Corporation (ADR) (NYSE:TM) (TYO:7203) said Mazda would produce Toyota vehicles for the North American market at a plant currently under construction in Guanajuato, Mexico.
• Sony Corporation (ADR) (NYSE:SNE) (TYO:6758) fell 2.6 percent in Tokyo trading after Moody’s Investors Service lowered the consumer electronics maker’s debt rating citing tepid demand for its products.
• Li & Fung Limited (HKG:0494), a supplier of toys and clothes to retailers including Wal-Mart Stores, Inc. (NYSE:WMT), climbed 1.1 percent in Hong Kong as China’s exports grew at the fastest pace since May.
• Oil Search Limited (ASX:OSH) and Santos Limited (ASX:STO) closed significantly lower in Sydney after Exxon Mobil Corporation (NYSE:XOM) raised cost and schedule estimates for a massive natural gas-export project in Papua New Guinea. Oil Search Ltd. and Santos Ltd. hold a stake of 29 percent and 13.5 percent in the project, respectively.