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
Warren Buffett: If You Own A Good Business, Keep It
Buying private businesses is easier than acquiring public firms, and investors should avoid selling good investments at all costs, according to the Oracle of Omaha, Warren Buffett. Q2 2020 hedge fund letters, conferences and more In an interview with CNBC in March 2013, Buffett was asked if he was looking at any businesses, in particular, Read More
• US: Dow: 12712.00 (-0.53%), S&P 500: 1369.50 (-0.63%), NASDAQ: 2563.00 (-0.70%)
• Europe: CAC: 3385.33 (-0.78%), DAX: 7102.23 (-0.94%), FTSE: 5730.50 (-0.64%).
• Asia-Pacific: Australia: 4379.80 (-1.53%), China: 2047.89 (-1.53%), Hong Kong: 21188.65 (-1.14%), India: 5683.70 (0.00%), Japan: 8661.05 (-0.18%).
• Metals: Gold: 1727.50 (-0.20%), Silver: 32.56 (0.12%), Copper: 3.45 (-0.46%)
• Energy: Crude Oil: 85.22 (-0.41%), Natural Gas: 3.63 (1.76%)
• Commodities: Corn: 7.24 (-2.76%), Soya Bean: 14.07 (-3.05%), Wheat: 8.71 (-3.33%)
• Currency: EUR/USD: 1.2684 (-0.21%), GBP/USD: 1.5880 (0.02%), USD/JPY: 79.4600 (-0.04%)
• 10 year US Treasury: 1.591% (-0.014)
Financial and Economic News Update
U.S. stock-index futures decline: U.S. stock-index futures are pointing to a lower open on Tuesday amid concerns about the U.S. fiscal cliff, and uncertainty in Greece. Cisco Systems, Inc. (NASDAQ:CSCO) will report quarterly numbers after the closing bell.
European markets fall: European markets are down in trade today, with the German DAX (INDEXDB:DAX) sliding 0.9 percent to 7102.23, the FTSE 100 (INDEXFTSE:UKX) down 0.6 percent to 5730.50 and the CAC 40 (INDEXEURO:PX1) shedding 0.8 percent to 3385.33. The euro zone blue-chip ESTX 50 PR.EUR (INDEXSTOXX:SX5E) (Euro Stoxx 50) was trading 0.6 percent lower.
Asian markets end lower: Asian markets closed lower on Tuesday with the HANG SENG INDEX (INDEXHANGSENG:HIS) down 1.1 percent at 21,188.7, its lowest close since October 15, while the SSE Composite Index (SHA:000001) (Shanghai Composite Index) slumped 1.5 percent. Japan’s NIKKEI 225 (INDEXNIKKEI:NI225) dropped 0.2 percent to 8,661 points. The S&P/ASX 200 (INDEXASX:XJO) index lost 68.2 points to 4,379.8 and hit a seven-week low. The benchmark Indian 30-share BSE SENSITIVE (INDEXBOM:SENSEX) index was closed for a public holiday.
Company News Update
• The Home Depot, Inc. (NYSE:HD) reported third quarter earnings excluding items of 74 cents a share, 4 cents above the average analysts; estimate. Revenue came in at $18.1 billion compared to estimates of $17.9 billion. The home improvement retailer also raised its full-year earnings outlook.
• Michael Kors Holdings Ltd (NYSE:KORS) reported second quarter earnings excluding items of 25 cents a share, on revenue of $532.9 million. The company also raised its full-year earnings and revenue outlook.
• Xerox Corporation (NYSE:XRX) provided lower than expected fourth quarter earnings outlook, and raised its dividend by 35 percent to 5.75 cents a share.
• Railroad operator Genesee & Wyoming Inc. (NYSE:GWR) said October traffic fell 4.8 percent from the year-ago period amid double-digit declines in shipments of farm and food products and metals.
• Dicks Sporting Goods Inc (NYSE:DKS) reported third-quarter profit of 40 cents per share, three cents above the average analysts’ estimate, with same store sales rising 5.1 percent.
• Microsoft Corporation (NASDAQ:MSFT) fell 4 percent in early morning trade after announcing that Windows President Steven Sinofsky will leave.
• Saks Inc (NYSE:SKS) reported third quarter earnings in-line with estimates but fell short on revenue. The retailer lowered its current quarter sales outlook.
• Aecom Technology Corp (NYSE:ACM) reported fourth quarter earnings excluding one-time items of 83 cents a share, on revenue of $2.08 billion. Analysts had projected earnings of 82 cents a share on revenue of $2.22 billion.
• Del Frisco’s Restaurant Group Inc (NASDAQ:DFRG) has named former Darden Restaurants, Inc. (NYSE:DRI) executive Jeff Carcara as its chief operating officer
• Private equity firm The Blackstone Group L.P. (NYSE:BX) and offshore oil producer LLOG Exploration Company LLC have agreed to jointly invest $1.2 billion to expand operations in the Gulf of Mexico, according to a Reuters report.
• Activist investor Carl Icahn has increased his stake in videogame maker Take-Two Interactive Software, Inc. (NASDAQ:TTWO) to 11.69 percent from the prior 10.68 percent, according to a regulatory filing.
• AK Steel Holding Corporation (NYSE:AKS) cut its shipment outlook for the fourth quarter, and said average selling prices will decline from the previous quarter.
• Oilfield-services provider Weatherford International Ltd (NYSE:WFT) reported third-quarter revenue of $3.82 billion that trailed the average analysts’ estimate of the $3.9 billion average.
• Medical products company Hologic, Inc. (NASDAQ:HOLX) reported third quarter earnings excluding one-time items of 37 cents a share, in line with estimates, while revenue edged past Street expectations. The company provided current quarter and full-year profit outlook that was below forecasts.
• The Dow Chemical Company (NYSE:DOW) gained 1 percent in early morning trade after Goldman Sachs raised the stock to “buy” from “neutral.”
• F5 Networks, Inc. (NASDAQ:FFIV) was upgraded to “buy” from “neutral” by analysts at Goldman Sachs.
• Vodafone Group Plc (ADR) (NASDAQ:VOD) (LON:VOD), the world’s second-largest mobile-phone company fell 4.6 percent in London after the group took a $9.4-billion write-down for its operations in Spain and Italy and cut its outlook for 2012.
• German utility E.ON AG (ETR:EOAN) (FRA:EOAN) tumbled 11 percent after swinging to a third-quarter loss and lowering its earnings forecast for 2013, amid weakening electricity demand in Europe.
• Intesa Sanpaolo SpA (BIT:ISP), Italy’s second-biggest bank, jumped 3 percent after third quarter trading income came in at 623 million euros, exceeding the average analyst estimate of 392 million euros.
• German airline Deutsche Lufthansa AG (ETR:LHA) (FTA:LHA) and its cabin crew union have resolved their labor dispute after nearly six weeks of negotiations. Lufthansa agreed to raise cabin crew pay by 3.95 percent.
• Paper and packaging company Mondi Plc (LON:MNDI) declined 3.3 percent in London after Barclays Plc sold 19.3 million shares at 634 pence apiece on behalf of a client.
• Pirelli & C. SpA (BIT:PC), Europe’s third- largest tiremaker, fell 2.9 percent after slashing its full-year revenue forecast by 250 million euros to 6.15 billion euros amid an economic slowdown in the region.
• German wind-turbine maker Nordex SE (ETR:NDX1) (FRA:NDXI) gained 8 percent after posting a 7 percent rise in third-quarter sales to 715.5 million euros. Earnings before interest and taxes jumped 63 percent to 15.4 million euros.
• British commercial-television network ITV plc (LON:ITV) surged 7 percent after reporting a 4 percent rise in revenue for the nine months to September 30.
• Electronic-equipment manufacturer Hitachi Cable, Ltd. (TYO:5812) jumped 19 percent to hit a three-month high after the Nikkei business daily reported it may merge with Hitachi Metals, Ltd. (TYO:5486).
• Goldman Sachs Group, Inc. (NYSE:GS) is planning to close its asset management unit in South Korea, the firm’s Hong Kong-based spokesman said on Tuesday.
• Anglo-Australian mining giant BHP Billiton Limited (ADR) (NYSE:BHP) (LON:BLT) (ASX:BHP) expects significant valuation improvements on its shale assets in the U.S., Australian newspapers reported on Tuesday.
• Sanyo Electric Co, a unit of Panasonic Corporation (ADR) (NYSE:PC) (TYO:6752) is in talks to sell its digital camera business, according to a report in the Nikkei business daily.
• QBE Insurance Group Limited (ASX:QBE), Australian biggest insurer by market value, plunged 7.5 percent after rating agency S&P lowered its outlook from stable to negative.
• Olympus Corp (TYO:7733) soared 6 percent after the camera and endoscope maker reported a better than expected second quarter profit, and lifted its annual net profit forecast 14.3 percent to 8 billion yen.
• Towa Pharmaceutical Co., Ltd. (TYO:4553) slid 8.4 percent to hit a three-month low, amid investor disappointment that the Japanese drug maker did not raise its full-year earnings forecast.
• DLF Limited (NSE:DLF) (BOM:532868), India’s largest real estate company, reported a 63 percent fall in second quarter net profit, hit by a dip home sales in Asia’s third-largest economy.
• Incitec Pivot Limited (ASX:IPL) rallied 3.8 percent after the company firm posted a 24 percent drop in annual profit, but said it expected its margins to recover this fiscal year.
• General contractor Shimizu Corporation (TYO:1803) fell 5.4 percent in Tokyo after cutting its full-year net-income forecast 45 percent to 5.5 billion yen ($69 million), citing higher than expected project costs. The company’s equity rating was lowered to “underperform” from “neutral” by analysts at Credit Suisse Group AG.
Economic Calendar for Tuesday, November 13, 2012:
07:30 A.M. ET: NFIB Small Business Optimism Index (October)
07:45 A.M. ET: ICSC-Goldman Store Sales (Week ending Saturday, November 10)
08:55 A.M. ET: Redbook Index (YoY) (November 4)
08:55 A.M. ET: Redbook Index (MoM) (November 4)
10:00 A.M. ET: IBD/TIPP Economic Optimism (MoM) (November)
11:30 A.M. ET: 3-Month Bill Auction
11:30 A.M. ET: 6-Month Bill Auction
02:00 P.M. ET: Treasury Budget
03:30 P.M. ET: Federal Reserve Vice Chair Janet Yellen speaks.