Morning Market Update
Stocks that are expected to trade actively in U.S. markets on Monday include: Apple Inc. (NASDAQ:AAPL), Google Inc (NASDAQ:GOOG), McDonald’s Corporation (NYSE:MCD), Berkshire Hathaway Inc. (NYSE:BRK.A) (NYSE:BRK.B), AstraZeneca plc (ADR) (NYSE:AZN), Alere Inc (NYSE:ALR), Elan Corp plc (ADR) (NYSE:ELN), IHS Inc. (NYSE:IHS), Sanofi SA (ADR) (NYSE:SNY) and Exide Technologies (NASDAQ:XIDE).
Seth Klarman Tells His Investors: Central Banks Are Treating Investors Like “Foolish Children”
"Surreal doesn't even begin to describe this moment," Seth Klarman noted in his second-quarter letter to the Baupost Group investors. Commenting on the market developments over the past six months, the value investor stated that events, which would typically occur over an extended time frame, had been compressed into just a few months. He noted Read More
• US: Dow Futures: 15237.00 (0.19%), S&P 500 Futures: 1642.40 (0.23%), NASDAQ Futures: 2987.50 (0.23%)
• Europe: CAC: 3860.05 (-0.32%), DAX: 8299.79 (0.54%), FTSE: 6391.71 (-0.32%)
• Asia-Pacific: Australia: 4737.70 (0.00%), China: 2210.90 (0.00%), Hong Kong: 21615.09 (0.18%), Japan: 13514.20 (4.71%).
• Metals: Gold: 1383.00 (-0.01%), Silver: 21.74 (-0.04%), Copper: 3.23 (-1.21%)
• Energy: Crude Oil: 95.43 (-0.62%), Natural Gas: 3.86 (0.91%)
• Commodities: Corn: 5.48 (2.37%), Soya Bean: 13.19 (1.87%), Wheat: 6.91 (-0.04%)
• Currency: EUR/USD: 1.3219 (0.01%), GBP/USD: 1.5543 (-0.10%), USD/JPY: 98.7400 (1.21%)
• 10 year US Treasury: 2.179% (0.007)
Market and Economic News Update:
U.S. stock-index futures gain: U.S. stock-index futures are pointing to a higher open on Monday as investors brushed aside weak Chinese data to continue its upward move following Friday’s better than expected monthly employment report. In breaking news, S&P has revised U.S. credit outlook to ‘stable’ from ‘negative.’ Up ahead, St. Louis Federal Reserve President James Bullard will speak in Montreal on the global economy at 9:50 A.M. ET.
European markets mixed: European markets are struggling for direction amid concerns that Chinese growth would slow further after lackluster trade data. The DAX (INDEXDB:DAX) gained 0.5 percent, while the CAC 40 (INDEXEURO:PX1) and the FTSE 100 (INDEXFTSE:UKX) fell in trade. The euro zone blue-chip ESTX 50 PR.EUR (INDEXSTOXX:SX5E) (Euro Stoxx 50) dropped 0.2 percent.
Asian markets end higher; Nikkei soars close to 5%: The NIKKEI 225 (INDEXNIKKEI:NI225) made a strong recovery from a previous two-month low following a better than expected GDP revision and a weaker yen. Japan revised its first quarter growth data to 4.1 percent in annualized terms, higher than the 3.5 percent growth initially reported. The HANG SENG INDEX (INDEXHANGSENG:HIS) rebounded from a seven-week low to close up 0.2 percent amid a rally in retail stocks. The SSE Composite Index (SHA:000001) (Shanghai Composite Index) and the S&P/ASX 200 (INDEXASX:XJO) index were closed for public holidays.
Stocks in News:
Apple Inc. (NASDAQ:AAPL)
Apple Inc. (NASDAQ:AAPL)’s annual development conference starts on Monday, and the tech giant is expected to unveil new operating systems, as well as a streaming music service widely referred to as iRadio. The major announcements are likely to be made during today’s keynote presentation. Shares of Apple Inc. gained in pre-open trading.
Google Inc (NASDAQ:GOOG)
Google Inc (NASDAQ:GOOG) is reportedly close to acquiring Israeli navigation startup Waze, and could pay more than $1 billion to trump rival offers. The proposed acquisition could be announced early this week, All Things Digital said on Monday. Representatives at Google and Waze declined to comment on the talks. Given Google’s strong presence in online maps, industry analysts are cautious that the deal would face anti-trust problems.
McDonald’s Corporation (NYSE:MCD)
McDonald’s Corporation (NYSE:MCD)’s global comparable sales rose 2.6 percent in May, compared to a 0.6 percent decline in April. Analysts had projected a 1.9 percent increase. Same-store sales in the U.S. rose 2.4 percent, also topping estimates of a 2.1 percent gain. Shares rose 2 percent in early morning trade.
Berkshire Hathaway Inc. (NYSE:BRK.A) (NYSE:BRK.B)
Berkshire Hathaway Inc. (NYSE:BRK.A) (NYSE:BRK.B) is looking at buying some commercial assets that Italian insurer Unipol Gruppo Finanziario SpA (BIT:UNI) must sell as part of its merger with Fondiaria Sai SpA (BIT:FSA), Reuters cited Il Sole 24 Ore business daily on Saturday. Officials at Berkshire Hathaway declined to comment on the report. The paper said non-binding offers for the assets are expected this Friday.
AstraZeneca plc (ADR) (NYSE:AZN)
AstraZeneca plc (ADR) (NYSE:AZN) has agreed to buy California-based respiratory drug specialist Pearl Therapeutics for up to $1.15 billion. The Anglo-Swedish drug giant will initially pay $560 million for Pearl plus a further $450 million if certain development milestones are achieved, as well as sales-related payments of up to $140 million. The acquisition is expected to be completed by the third quarter of 2013.
Alere Inc (NYSE:ALR)
Activist investor Coppersmith Capital Management LLC has sent a letter to health diagnostics company Alere Inc (NYSE:ALR) calling for it to sell three of its businesses, Reuters reported early Monday. The hedge fund holds a 5.8 percent stake in the company and has been campaigning for change since last month.
Elan Corporation, plc (ADR) (NYSE:ELN)
Irish drug firm Elan Corp plc (ADR) (NYSE:ELN)’s board of directors unanimously rejected an increased offer from Royalty Pharma and said it was assessing enquiries from other interested parties. Elan said the $13.00 a share in cash, plus a contingent value right of as much as $2.50 a share continues to be wholly inadequate for Elan shareholders. A spokesman for Elan declined to on who the other interested parties are.
IHS Inc. (NYSE:IHS)
R.L. Polk, the owner of used-car shopping service Carfax, is being acquired by business information company IHS Inc. (NYSE:IHS) for $1.4 billion in cash and stock. IHS said the deal will help increase its presence in the automotive industry. Class A shares of IHS Inc. closed Friday at $106.94 and were inactive pre-market trading.
Sanofi SA (ADR) (NYSE:SNY)
French drug maker Sanofi SA (ADR) (NYSE:SNY) said its Sanofi Pasteur vaccines division has secured clearance from the U.S. Food and Drug Administration to market its new anti-flu vaccine Fluzone Quadrivalent. The new version of the vaccine is licensed for use in children older than six months, adolescents, and adults, and includes protection against four strains of flu. Shares of Sanofi SA gained in New York pre-market trading.
Exide Technologies (NASDAQ:XIDE)
Shares of Exide Technologies (NASDAQ:XIDE) plunged in early-hours trading after the troubled battery maker filed for Chapter 11 bankruptcy protection on Monday. In its Chapter 11 petition filed in the U.S. Bankruptcy Court in Wilmington, Del., the company said it plans to implement a restructuring, for which it has lined up a $500 million bankruptcy loan. Exide’s profits have fallen amid stiff competition and high production costs. The bankruptcy protection filing is the company’s second, after it emerged from a Chapter 11 restructuring in 2004.
Economic Calendar for Monday, June 10, 2013:
11:00 A.M. ET: St Louis Federal Reserve Bank President James Bullard speaks.
11:30 A.M. ET: 3-Month Bill Auction
11:30 A.M. ET: 6-Month Bill Auction
12:30 P.M. ET: TD Ameritrade Investor Movement Index