Morning Market News
Stocks that are expected to trade actively in U.S. markets on Tuesday include: Netflix, Inc. (NASDAQ:NFLX), Apple Inc. (NASDAQ:AAPL), Google Inc (NASDAQ:GOOG), United Technologies Corporation (NYSE:UTX), Texas Instruments Incorporated (NASDAQ:TXN), E I Du Pont De Nemours And Co (NYSE:DD), The Blackstone Group L.P. (NYSE:BX), Travelers Companies Inc (NYSE:TRV), Noble Energy, Inc. (NYSE:NBL), Illumina, Inc. (NASDAQ:ILMN), Rent-A-Center Inc (NASDAQ:RCII) and Forest Laboratories, Inc. (NYSE:FRX).
• US: Dow Futures: 14568.00 (0.48%), S&P 500 Futures: 1561.60 (0.37%), NASDAQ Futures: 2816.50 (0.69%)
• Europe: CAC: 3745.83 (2.47%), DAX: 7608.39 (1.71%), FTSE: 6377.25 (1.52%)
• Asia-Pacific: Australia: 5016.20 (1.00%), China: 2184.54 (-2.64%), Hong Kong: 21806.61 (-1.09%), India: 5836.90 (0.04%), Japan: 13529.65 (-0.29%).
• Metals: Gold: 1417.20 (-0.28%), Silver: 22.84 (-2.08%), Copper: 3.10 (-0.89%)
• Energy: Crude Oil: 88.20 (-1.11%), Natural Gas: 4.27 (0.05%)
• Commodities: Corn: 6.19 (-1.58%), Soya Bean: 13.62 (-1.09%), Wheat: 6.94 (-1.20%)
• Currency: EUR/USD: 1.2982 (-0.64%), GBP/USD: 1.5253 (-0.24%), USD/JPY: 99.1100 (-0.12%)
• 10 year US Treasury: 1.670% (-0.024)
Market and Economic News Update
U.S. stock-index futures up: U.S. stock-index futures are pointing to a higher open on Tuesday, lifted by a batch of strong corporate earnings. Investor’s will keep an eye on Federal Housing Finance Agency’s monthly home price index data for February to be released at 9 A.M. ET, and new home sales numbers for March at 10 A.M. Apple Inc. (NASDAQ:AAPL), AT&T Inc. (NYSE:T) and Yum! Brands, Inc. (NYSE:YUM) are slated to report quarterly numbers after the close.
European markets rally: European markets jumped in trade today, helped by better than expected manufacturing data from France, and a successful Spanish bond auction. The French flash Composite PMI for April came in better-than-expected at 44.2 compared to 41.9 in March. The German DAX (INDEXDB:DAX) is up 1.7 percent at 7608.39 points. The FTSE 100 (INDEXFTSE:UKX) surged 1.5 percent to 6377.25 and the CAC 40 (INDEXEURO:PX1) added 2.5 percent to 3745.83 points. The euro zone blue-chip ESTX 50 PR.EUR (INDEXSTOXX:SX5E) (Euro Stoxx 50) was up 2.1 percent.
Asian markets end mostly lower: Asian markets closed lower on Tuesday following weak manufacturing data from China, reviving investor concerns about a slowdown in the country. China’s flash HSBC PMI for April fell to 50.5, missing expectations by a full point and against March’s reading of 51.6. The NIKKEI 225 (INDEXNIKKEI:NI225) fell to the 13,530 level, while the S&P/ASX 200 (INDEXASX:XJO) index jumped 1 percent to hit a one-week high. The HANG SENG INDEX (INDEXHANGSENG:HIS) lost 1.1 percent to close well-below the 22,000 mark and the SSE Composite Index (SHA:000001) (Shanghai Composite Index) tumbled 2.6 percent
Stocks to Watch
Netflix, Inc. (NASDAQ:NFLX)
Netflix, Inc. (NASDAQ:NFLX) posted strong first quarter earnings, helped by a big jump in video streaming subscribers. Earnings, excluding one-time items came in at 31 cents a share, easily exceeding Street expectations for 19 cents a share. Revenue increased 17 percent to $1.02 billion, in line with estimates. Netflix, Inc. (NASDAQ:NFLX) added 2 million new U.S. streaming subscribers during the period, which was at the top end of its own projections. For the current quarter, the company expects to add up to 880,000 U.S. streaming subscribers.
Apple Inc. (NASDAQ:AAPL)
The US International Trade Commission has dismissed a complaint by Google Inc (NASDAQ:GOOG)’s Motorola Mobility unit accusing Apple Inc. (NASDAQ:AAPL) of infringing on patented sensor technology that makes touch screens ignore touches when people are holding their smart phones to their ears for calls. Google Inc (NASDAQ:GOOG) had acquired the contested patent as part of its $12.5 billion takeover of Motorola Mobility in 2012.
United Technologies Corporation (NYSE:UTX)
United Technologies Corporation (NYSE:UTX) reported first-quarter earnings that topped Wall Street’s expectations, but revenue trailed estimates, hurt by a weak European market and soft commercial aerospace and defense sales. United Technologies Corporation (NYSE:UTX) posted adjusted earnings of $1.28 a share, on revenue of $14.4 billion, compared to the consensus estimate of earnings of $1.29 per share on revenue of $14.9 billion. Additionally, the company reaffirmed its full-year outlook. Shares dipped in pre-market trading.
Texas Instruments Incorporated (NASDAQ:TXN)
Texas Instruments Incorporated (NASDAQ:TXN) reported better than expected first quarter results, helped by increased orders from industrial-tool and auto-components makers. Earnings came in at 32 cents a share, 2 cents above the average analysts’ estimate, on revenue of $2.89 billion that also beat expectations for $2.85 billion. Gross margin for the period slipped to 47.63 percent from 49 percent a year earlier. Texas Instruments Incorporated (NASDAQ:TXN) forecast current quarter profit and sales that may top some analysts’ estimates. Shares rose in early-hours trading.
E I Du Pont De Nemours And Co (NYSE:DD)
Chemical maker E I Du Pont De Nemours And Co (NYSE:DD)’s quarterly profit more than doubled, helped by a strong performance in the agriculture segment. Excluding one-time items, the company earned $1.56 per share, on sales of $10.4 billion, against Street expectations for $1.52 per share on revenue of $10.41 billion. E I Du Pont De Nemours And Co (NYSE:DD) raised its quarterly cash dividend by 5 percent to 45 cents per share.
The Blackstone Group L.P. (NYSE:BX)
The Blackstone Group L.P. (NYSE:BX) has agreed to buy Credit Suisse Group AG (ADR) (NYSE:CS)’s secondary private equity arm for an undisclosed amount. Strategic Partners buys stakes in private-equity funds from other investors and has $9 billion in assets under management. The deal is expected to close by the end of the third quarter of this year. Credit Suisse Group AG (ADR) (NYSE:CS) put the business up for sale at the end of last year to comply with guidelines set by the Volcker Rule.
Travelers Companies Inc (NYSE:TRV)
Travelers Companies Inc (NYSE:TRV) reported first-quarter profit that beat estimates, helped by a decline in catastrophe losses and rising insurance rates. Operating profit, which excludes some investment results, stood at $2.31 a share, topping the average analysts’ estimate of $2.02 a share. Travelers Companies Inc (NYSE:TRV) also increased its quarterly dividend to 50 cents per share from 46 cents per share. Shares rallied following the numbers.
Noble Energy, Inc. (NYSE:NBL)
Oil and gas company Noble Energy, Inc. (NYSE:NBL) has approved a two-for-one stock split and raised its quarterly dividend to 28 cents a share from 25 cents a share. The new shares will be distributed May 28 to shareholders of record at the close of business on May 14, while the dividend will be payable May 20 to shareholders of record on May 6. Shares closed Monday at $108.61 and edged higher in pre-market trading.
Illumina, Inc. (NASDAQ:ILMN)
Gene-sequencing company Illumina, Inc. (NASDAQ:ILMN) reported a first quarter loss after it took a $106.9 million charge related to a patent infringement litigation. Excluding the legal contingencies, earnings came in at 46 cents a share, 8 cents above the consensus estimate. Revenue jumped 21 percent, to $331 million from $272.8 million, a year earlier, topping expectations for $311 million. Shares soared in pre-market trading.
Rent-A-Center Inc (NASDAQ:RCII)
Furniture and electronics rental company Rent-A-Center Inc (NASDAQ:RCII) reported first quarter earnings of 80 cents a share on revenue of $819 million, below projections for 87 cents a share on sales of $844 million. Same store sales fell 4.3 percent from a year earlier. In addition, Rent-A-Center Inc (NASDAQ:RCII) provided full-year earnings outlook that trailed most estimates, sending shares lower in early morning trade.
Forest Laboratories, Inc. (NYSE:FRX)
Forest Laboratories, Inc. (NYSE:FRX) reported fourth quarter earnings excluding certain items of 25 cents a share, 11 cents above the average analysts’ estimate. Revenue dropped 21 percent to $783.2 million, as the drug maker continued to take a hit from the loss of patent exclusivity for antidepressant Lexapro. Moreover, Forest Laboratories, Inc. (NYSE:FRX)’s full-year projection of per-share earnings of 80 cents to $1 is largely short of analyst estimates of $1.
Economic Calendar for Tuesday, April 23, 2013:
07:45 A.M. ET: ICSC-Goldman Store Sales (Week ending Saturday, April 20)
08:55 A.M. ET: Redbook Index (MoM) (April 14)
08:55 A.M. ET: Redbook Index (YoY) (April 14)
08:58 A.M. ET: Markit Manufacturing PMI (April)
09:00 A.M. ET: Housing Price Index (MoM) (February)
10:00 A.M. ET: New Home Sales (MoM) (March)
10:00 A.M. ET: Richmond Fed Manufacturing Index (April)
11:30 A.M. ET: 4-Week Bill Auction
01:00 P.M. ET: 2-Year Note Auction