Every morning we puts out a news report with the latest news in global stock markets, company news, and global economic news.
Morning Market Update
Should You Go All In On Water Like Michael Burry?
Water investments? Michael Burry was one of the first institutional investors to bet against the US subprime mortgage market in the mid-2000s, and today he’s concentrating all of his investment efforts on one commodity: water. Burry’s focus on water has attracted plenty of attention to the commodity in the investment community but trying to profit Read More
• US: Dow: 12714.00 (-0.48%), S&P 500: 1370.10 (-0.38%), NASDAQ: 2566.60 (-0.21%)
• Europe: CAC: 3392.63 (-0.44%), DAX: 7112.86 (-1.29%), FTSE: 5740.06 (-0.63%).
• Asia-Pacific: Australia: 4462.00 (-0.49%), China: 2069.07 (-0.12%), Hong Kong: 21384.38 (-0.85%), India: 5686.25 (-0.91%), Japan: 8757.60 (-0.91%).
• Metals: Gold: 1731.30 (0.77%), Silver: 32.20 (-0.14%), Copper: 3.42 (-1.51%)
• Energy: Crude Oil: 84.31 (-0.92%), Natural Gas: 3.56 (-1.39%)
• Commodities: Corn: 7.41 (-0.34%), Soya Bean: 14.74 (-0.90%), Wheat: 8.94 (0.95%)
• Currency: EUR/USD: 1.2701 (-0.38%), GBP/USD: 1.5908 (-0.48%), USD/JPY: 79.2600 (-0.26%)
• 10 year US Treasury: 1.591% (-0.024)
Financial and Economic News Update
U.S. stock-index futures decline: U.S. stock-index futures are pointing to a lower open on Friday as disappointing corporate earnings and concerns over fiscal problems in the country weighed on sentiment. On the economic front, the Labor Department said import prices climbed 0.5 percent in October. Analysts were expecting import prices would be flat.
European markets trading lower: European markets are down in trade today, with the German DAX (INDEXDB:DAX) losing 1.3 percent to 7112.86, the FTSE 100 (INDEXFTSE:UKX) edging 0.6 percent lower to 5740.06 and the CAC 40 (INDEXEURO:PX1) sliding 0.4 percent to 3392.63. The euro zone blue-chip ESTX 50 PR.EUR (INDEXSTOXX:SX5E) (Euro Stoxx 50) was down 1.2 percent.
Asian markets end in the red: Asian markets closed lower on Friday with the HANG SENG INDEX (INDEXHANGSENG:HIS) down 0.9 percent to 21,384.4, while the SSE Composite Index (SHA:000001) (Shanghai Composite Index) lost 0.1 percent. Japan’s NIKKEI 225 (INDEXNIKKEI:NI225) ended 0.9 percent lower at 8,757.60. The S&P/ASX 200 (INDEXASX:XJO) index gave up 21.8 points to close at 4,462.0. The benchmark Indian 30-share BSE SENSITIVE (INDEXBOM:SENSEX) index closed down 0.9 percent.
Company News Update
• J.C. Penney Company, Inc. (NYSE:JCP) reported third quarter loss of 93 cents a share, excluding certain items, much wider than the average analysts’ estimate of a loss of 7 cents per share. Revenue came in at $2.93 billion, trailing estimates of $3.27 billion.
• Private equity firm Apollo Global Management LLC (NYSE:APO) said third quarter total economic net income after taxes rose to 98 cents a share, from a loss of $2.89 a share in the year-ago period. Analysts were expecting earnings of 76 cents a share. Assets under management stood at $110 billion at the end of the third quarter, up from $104.9 billion in the previous quarter.
• Microchip Technology Inc. (NASDAQ:MCHP) posted third quarter earnings excluding one-time items of 48 cents a share, in line with estimates, but sales fell short of Street expectations. The company handed in lower than expected current-quarter earnings and revenue outlook.
• Membership-based car sharing company Zipcar Inc (NASDAQ:ZIP) reported third quarter earnings of 10 cents a share on revenue of $78 million, easily beating expectations for a penny a share on revenue of $76 million. The company provided current-quarter earnings outlook that matched estimates.
• Energizer Holdings, Inc. (NYSE:ENR) posted fourth quarter earnings of $1.76 per share, 21 cents above estimates. The company also forecast fiscal 2013 earnings above current Wall Street consensus.
• Movie studio Lions Gate Entertainment Corp. (USA) (NYSE:LGF) reported second quarter earnings of 53 cents a share on revenue of $707 million that easily beat estimates of 9 cents a share on sales of $623 million.
• Videogame stocks, including Electronic Arts Inc. (NASDAQ:EA) and Activision Blizzard, Inc. (NASDAQ:ATVI) could be in focus today move after market research firm NPD reported that sales fell 25 percent in October.
• Covidien plc (NYSE:COV) posted third quarter earnings excluding items of $1.02 a share, 2 cents above the average analysts’ estimate. Sales fell 2.5 percent to $3 billion, also topping estimates of $2.98 billion.
• Alliant Energy Corporation (NYSE:LNT) reported a 23 percent rise in third quarter profit to $154.7 million, or $1.34 a share, from $125.9 million, or $1.23 cents, in the year-ago period. Revenue increased 1.9 percent to $887.6 million. Analysts were expecting the energy holding company to earn $1.30 a share on revenue of $992 million.
• Telus Corporation (USA) (NYSE:TU) (TSE:T) reported third quarter earnings and revenue, in line with estimate. The Canadian telecom operator raised its quarterly dividend to 64 Canadian cents a share from 61 Canadian cents a share.
• Flowers Foods, Inc. (NYSE:FLO) reported third quarter earnings excluding items of 25 cents a share, in line with estimates. Sales stood at $717.3 million, trailing estimates of $724 million.
• Foster Wheeler AG (NASDAQ:FWLT) posted third quarter earnings excluding items of 56 cents a share, on revenue of $803.2 million. Analysts had forecast adjusted earnings of 45 cents a share on revenue of $1.07 billion.
• Cisco Systems, Inc. (NASDAQ:CSCO) slid 2 percent in pre-market trading after analysts at J.P. Morgan lowered the stock to “neutral” from “overweight”, and slashed its price target to $17 a share from $21 a share.
• 3M Co (NYSE:MMM) is up 1 percent in early morning trade after it was upgraded to “neutral” from “reduce” by analysts at Nomura.
• Credit Agricole SA (EPA:ACA) tumbled 7 percent after posting a wider than expected third-quarter loss. France’s third-largest bank reported a quarterly loss of 2.85 billion euros ($3.6 billion), wider than the average analysts’ estimate of 1.88 billion euros.
• BP plc (ADR) (NYSE:BP) (LON:BP) fell 1.7 percent in London after the oil firm’s exploration unit was ordered to pay $255 million to the state of Alaska for a 2006 oil pipeline spill at its Prudhoe Bay field.
• Allianz SE (ETR:ALV) (FRA:ALV), Europe’s biggest insurer, said third quarter operating profit rose by a third to 2.53 billion euros from 1.91 billion euros a year earlier.
• Credit Suisse Group AG (ADR) (NYSE:CS) will merge its retail and private-banking units in Switzerland, in a move that will cost around 300 jobs and reduce operating costs by around 50 million Swiss francs ($53 million).
• Novo Nordisk A/S (ADR) (NYSE:NVO) (CPH:NOVO-B) rallied 6.9 percent after an advisory panel to the U.S. Food and Drug Administration voted to approve two of its insulin products.
• German car maker Bayerische Motoren Werke AG (ETR:BMW) (FRA:BMW) said October global sales were up 13 percent as strong demand in Asia and the U.S. offset weakness in Europe.
• Lonmin Plc (LON:LMI) dropped 1.5 percent in London after reporting a full-year loss of $698 million. The company also said that it has rejected a reverse takeover offer from the Anglo-Swiss mining company Xstrata PLC (LON:XTA).
• German defense and automotive equipment company Rheinmetall AG (ETR:RHM) (FRA:RHM) plunged 8 percent after reporting third-quarter profit of 33 million euros that fell short of the average analysts’ estimate of 35 million euros. The company cut its full-year sales outlook.
• British power systems firm Rolls-Royce Holding PLC (LON:RR) said it’s Chief Operating Officer, Mike Terrett will retire at the end of the year.
• Dutch insurer Aegon N.V. (ADR) (NYSE:AEG) (AMS:AGN) fell 5 percent after analysts at Bank of America Merrill Lynch cut the stock to “neutral” from “buy.”
• Samsung Electronics sold approximately 18 million Galaxy S3 smart phones in the third quarter, compared with Apple Inc. (NASDAQ:AAPL)’s iPhone 4S sales of 16.2 million, data from research firm Strategy Analytics showed on Thursday.
• Diageo plc (ADR) (NYSE:DEO) (LON:DGE), the world’s largest spirits maker has agreed to buy a 53.4 percent stake in Indian liquor baron Vijay Mallya’s United Spirits Limited (BOM:532432) for $2.1 billion.
• China’s CNOOC Limited (ADR) (NYSE:CEO) (HKG:0883) said it is confident of winning regulatory approval from the Canadian government by the end of the year for its $15.1 billion takeover of oil and gas producer, Nexen Inc. (USA) (NYSE:NXY) (TSE:NXY).
• Mineral sands miner Lynas Corporation Limited (ASX:LYC) is planning to raise up to 200 million Australian dollars ($208 million) to help fund the start-up of its controversial plant in Malaysia.
• Jewellery retailer Chow Tai Fook Jewellery Group Ltd (HKG:1929) fell 5.6 percent in Hong Kong after warning that it would likely report a first-half profit drop due to gold hedging activities.
• Suzuki Motor Corporation (TYO:7269) said first half net profit jumped 31 percent, while sales were flat. Japan’s fourth-biggest car maker by volume maintained its full-year outlook.
• Origin Energy Limited (ASX:ORG) fell 5.7 percent after the company warned its 2013 profit could fall as much as 10 percent.
• Online games developer Nexon Co Ltd (TYO:3659) tanked 16 percent in Tokyo after cutting its projection for fiscal-year operating profit.
• China Telecom Corporation Limited (ADR) (NYSE:CHA) (HKG:0728) will begin offering customers Apple Inc. (NASDAQ:AAPL)’s iPhone 5 by the end of this month or early December.
• Mining-equipment maker Emeco Holdings Limited (ASX:EHL) plunged 17 percent in Sydney after slashing its first-half operating profit target on lower domestic demand.
Economic Calendar for Friday, November 09, 2012:
08:30 A.M. ET: Import Price Index (YoY) (October)
08:30 A.M. ET: Import Price Index (MoM) (October)
08:30 A.M. ET: Export Price Index (YoY) (October)
08:30 A.M. ET: Export Price Index (MoM) (October)
09:55 A.M. ET: Reuters/Michigan Consumer Sentiment Index (November)
10:00 A.M. ET: Wholesale Inventories (September)