Morning Market Update
Themes for the next decade: Cannabis, 5G, and EVs
A lot changes in 10 years, and many changes are expected by the time 2030 rolls around. Some key themes have already emerged, and we expect them to continue to impact investing decisions. At the recent Morningstar conference, several panelists joined a discussion about several major themes for the next decade, including cannabis, 5G and Read More
- US: Dow: 12927.00 (-0.07%), S&P 500: 1404.20 (0.06%), NASDAQ: 2650.25 (0.17%)
- Europe: CAC: 3501.10 (0.00%), DAX: 7319.58 (0.38%), FTSE: 5799.39 (0.22%).
- Asia-Pacific: Australia: 4456.80 (0.74%), China: 1991.17 (-1.32%), Hong Kong: 21844.03 (-0.08%), India: 5727.45 (1.62%), Japan: 9423.30 (0.36%).
- Metals: Gold: 1748.00 (-0.09%), Silver: 34.12 (-0.05%), Copper: 3.54 (0.08%)
- Energy: Crude Oil: 87.93 (0.22%), Natural Gas: 3.74 (0.38%)
Financial and Economic News Update
U.S. stock-index futures largely unchanged: U.S. stock-index futures are pointing to a flat open on Tuesday, as investors continued to focus on lack of progress in “fiscal cliff” talks.
European markets off day’s highs: European markets gave up gains made earlier in the session and is currently trading flat. The German DAX (INDEXDB:DAX) added 0.4 percent to7319.58 , the FTSE 100 (INDEXFTSE:UKX) edged 0.2 percent higher at5799.39 and the CAC 40 (INDEXEURO:PX1) was trading largely unchanged. The euro zone blue-chip ESTX 50 PR.EUR (INDEXSTOXX:SX5E) (Euro Stoxx 50) was trading 0.1 percent higher.
Asian markets end mixed: Asian markets closed mixed on Tuesday with the HANG SENG INDEX (INDEXHANGSENG:HIS) down 0.1 percent at21844.03 points, while the SSE Composite Index (SHA:000001) (Shanghai Composite Index) shed 1.3 percent. Japan’s NIKKEI 225 (INDEXNIKKEI:NI225) rose 0.4 percent to 9423.30 points, the highest closing level since April 27. The S&P/ASX 200 (INDEXASX:XJO) index closed up .7 percent. The benchmark Indian 30-share BSE SENSITIVE (INDEXBOM:SENSEX) index was the best performer in the region, rallying 1.3 percent.
Company News Update
- ConAgra Foods, Inc. (NYSE:CAG) has agreed to buy packaged-food companies Ralcorp Holdings, Inc. (NYSE:RAH) for about $5 billion in cash, creating one of the largest private-label packaged food businesses in North America.
- ADT Corp (NYSE:ADT) reported fourth quarter earnings excluding one-time items of 43 cents a share, in line with estimates. Revenue rose 2.3 percent to $812 million, missing Street expectations for $818 million.
- Casino operator Las Vegas Sands Corp. (NYSE:LVS)’s board has approved a special dividend of $2.75 a share. The company also said it will raise its existing dividend by 40 percent to $1.40 a share starting next year.
- Recreational vehicle maker Thor Industries, Inc. (NYSE:THO) posted first quarter earnings of 60 cents a share on revenue of $876 million, trailing expectations for 62 cents a share on sales of $877 million.
- Department store chain Dillard’s, Inc. (NYSE:DDS) declared a special dividend of $5 per share and announced a quarterly dividend of 5 cents per share.
- Children’s apparel retailer Children’s Place Retail Stores, INC. (NASDAQ:PLCE) announced an additional $100 million share buyback program and appointed Michael Scarpa as its new chief financial officer.
- Funeral products company Hillenbrand, Inc. (NYSE:HI) reported fourth quarter earnings of 50 cents a share, topping expectations by 6 cents a share. Revenue came in at $253.5 million, trailing estimates of $259.03 million.
- Online real estate database Zillow Inc (NASDAQ:Z) has agreed to acquire map-based rental site HotPads for $16 million in cash.
- Insulin maker Novo Nordisk A/S (ADR) (NYSE:NVO) reported positive data on its liraglutide-based therapy for type 2 diabetes.
- Dollar General Corp. (NYSE:DG) is up 2 percent in pre-market trading after Standard & Poor’s said it’s adding the retailer to the S&P 500 index as of the close of markets November 30.
- Pentair Ltd (NYSE:PNR) projected per-share earnings of $3.10 to $3.30 on revenue of $7.7 billion for 2013. Analysts were expecting the maker of water-treatment and storage systems to report per-share profit of $3.25 and revenue of $7.92 billion.
- Financial services company BankUnited (NYSE:BKU) raised its quarterly dividend by 23.5 percent to 21 cents per share from 17 cents per share.
- Norwegian oil major Statoil ASA (NYSE:STO) said that operations on the Brugdan II well offshore the Faroe Islands will be temporarily suspended due to worsening weather conditions. Exxon Mobil Corporation (NYSE:XOM) has 49 percent stake in the license.
- Medical device maker Merit Medical Systems, Inc. (NASDAQ:MMSI) will acquire Thomas Medical Products Inc., a part of General Electric Company (NYSE:GE)’s health-care business, for about $167 million.
- Acadia Pharmaceuticals Inc. (NASDAQ:ACAD) said its experimental antipsychotic drug, pimavanserin, showed significant improvement in patients with Parkinson’s disease symptoms like hallucinations and delusions of jealousy, in a late-stage trial.
- Liquor company Brown-Forman Corporation (NYSE:BF.A) (NYSE:BF.B) declared a special dividend of $4 a share, payable on December 27 to holders of record December 12.
- Banking stocks in Europerallied after euro-zone finance ministers struck a deal on reducing Greece’s debt. HSBC Holdings plc (NYSE:HBC) (LON:HSBA) (HKG:0005) gained 0.5 percent, Royal Bank of Scotland Group plc (ADR) (NYSE:RBS) (LON:RBS) jumped 2.8 percent and Barclays PLC (ADR) (NYSE:BCS) (LON:BARC) rose 0.8 percent. In Germany, Commerzbank AG (ETR:CBK) (FRA:CBK) and Deutsche Bank AG (NYSE:DB) (ETR:DBK) (FRA:DBK) soared more than 2 percent. BNP Paribas SA (EPA:BNP) and Societe Generale SA (EPA:GLE) were also trading significantly higher inParis.
- Credit Suisse Group AG (ADR) (NYSE:CS) is planning to cut 100 jobs at its U.K. investment banking unit as part of a restructuring plan, The Financial Times reported.
- Lakshmi Mittal, the Indian-born chairman and chief executive of ArcelorMittal (NYSE:MT) (AMS:MT) will meet French President Francois Hollande on Tuesday, a day after a French minister accused the world’s biggest steelmaker of “lying” and “blackmail.”
- French distiller Remy Cointreau (EPA:RCO) jumped 8 percent after posting first-half operating profit that beat estimates. The company confirmed its target to “substantially” lift full-year earnings.
- Mitchells & Butlers plc (LON:MAB) reported a rise in full-year profit, but shares tanked in London trading after the bar and pub operator said it would not pay a dividend for the fourth consecutive year.
- Portugal’s biggest oil company Galp Energia SGPS SA (ELI:GALP) slid 5 percent after Eni SpA (ADR) (NYSE:E) (BIT:ENI) said late yesterday that it’s selling 49.8 million Galp shares through a bookbuilding.
- Wind- turbine maker Nordex SE (ETR:NDX1) (FRA:NDX1) surged 3 percent after winning a second large contract for a wind farm in South Africa.
- Royal Bank of Scotland Group plc (NYSE:RBS) (LON:RBS) was upgraded to “buy” from “neutral” by analysts at UBS AG.
- Oil-services company SBM Offshore N.V. (AMS:SBMO) gained 5 percent as Barclays Plc raised the stock to “overweight” from “underweight.”
- Italian broadcaster Mediaset SpA (BIT:MS), controlled by former Prime Minister Silvio Berlusconi, rallied 3 percent after it was raised to “neutral” from “underperform” by analysts at Mediobanca.
- Japanese gaming major Nintendo Co., Ltd (TYO:7974) fell 2.1 percent despite selling out its new Wii U console in theU.S. during its first week on the market.
- China Rongsheng Heavy Industries Group (HKG:1101) tumbled 6.7 percent to its lowest close in a month after billionaire Zhang Zhi Rong quit as chairman, just three months after the company posted its sharpest fall in half-year net profit.
- Japan’s Kansai Electric Power Co Inc (TYO:9503) closed 2.7 percent higher after a Nikkei report said that the firm applied late Monday to raise electricity rates for companies and households from April.
- China Resources Enterprise, Limited (HKG:0291) jumped 3 percent in Hong Kong amid media reports that it plans to purchase a stake in French retailer Carrefour SA (EPA:CA).
- Australian drug-maker CSL Limited (ASX:CSL) soared 6.9 percent to close at a record high after forecasting a 20 percent rise in full-year net profit, helped by strong sales as well as royalty income from its Gardasil cervical cancer vaccine.
- Macaucasino operators closed significantly higher in trade today after Las Vegas Sands Corp. (NYSE:LVS), parent of Sands China, declared a $2.75 per share special dividend. Sands China Ltd. (HKG:1928) climbed 1.8 percent; Wynn Macau Ltd (HKG:1128) was up 2 percent, while Lui Che-Woo’s Galaxy Entertainment Group Limited (HKG:0027) rose 2.4 percent.
- Japanese shipping company Mitsui O.S.K. Lines, Ltd. (TYO:9104) slid 1.4 percent after the Nikkei business daily reported that the firm is planning to cut its fleet to 940 from 981 in an effort to turnaround its business.
- Chinese game developer Shanda Games Limited (NASDAQ:GAME) said fiscal second-quarter profit fell 26 percent to 253.9 million yuan ($40 million), or 0.92 yuan (15 U.S. cents) per American depositary share, from 342.6 million yuan, or 1.20 yuan per ADS, a year earlier. Revenue dropped 20 percent to 1.08 billion yuan, or $170.4 million.
Economic Calendar for Tuesday, November 27, 2012:
06:00 A.M. ET: Dallas Federal Reserve Bank President Richard Fisher speaks.
06:30 A.M. ET: Atlanta Federal Reserve Bank President Dennis Lockhart speaks.
07:45 A.M. ET: ICSC-Goldman Store Sales (Week ending Saturday, November 24)
08:30 A.M. ET: Durable Goods Orders (October)
08:30 A.M. ET: Durable Goods Orders ex Transportation (October)
08:30 A.M. ET: Federal Reserve Chairman Ben Bernanke speaks.
08:55 A.M. ET: Redbook Index (YoY)
08:55 A.M. ET: Redbook Index (MoM)
09:00 A.M. ET: S&P/Case-Shiller Home Price Indices (YoY) (September)
10:00 A.M. ET: Consumer Confidence (November)
10:00 A.M. ET: Housing Price Index (MoM) (September)
10:00 A.M. ET: RichmondFed Manufacturing Index (November)
11:30 A.M. ET: 4-Week Bill Auction
01:00 P.M. ET: 2-Year Note Auction