Morning Market Update
Stocks that are expected to trade actively in U.S. markets on Thursday include: H&R Block, Inc. (NYSE:HRB), Safeway Inc. (NYSE:SWY), Apple Inc. (NASDAQ:AAPL), Gannett Co., Inc. (NYSE:GCI), Belo Corp (NYSE:BLC), Clearwire Corporation (NASDAQ:CLWR), DISH Network Corp (NASDAQ:DISH), Sprint Nextel Corporation (NYSE:S), Yahoo! Inc. (NASDAQ:YHOO), PVH Corp (NYSE:PVH), The Men’s Wearhouse, Inc. (NYSE:MW), C.R. Bard, Inc. (NYSE:BCR), Five Below Inc (NASDAQ:FIVE) and SeaWorld Entertainment Inc (NYSE:SEAS).
• US: Dow Futures: 14895.00 (-0.55%), S&P 500 Futures: 1605.30 (-0.29%), NASDAQ Futures: 2916.00 (-0.15%)
• Europe: CAC: 3767.18 (-0.70%), DAX: 8024.78 (-1.46%), FTSE: 6247.18 (-0.83%)
• Asia-Pacific: Australia: 4695.80 (-0.61%), China: 2148.36 (-2.91%), Hong Kong: 20887.04 (-2.24%), Japan: 12445.38 (-6.38%).
• Metals: Gold: 1384.30 (-0.55%), Silver: 21.70 (-0.44%), Copper: 3.19 (-1.01%)
• Energy: Crude Oil: 95.38 (-0.52%), Natural Gas: 3.73 (-1.35%)
• Commodities: Corn: 5.36 (-2.36%), Soya Bean: 13.08 (-1.09%), Wheat: 6.82 (-1.94%)
• Currency: EUR/USD: 1.3317 (-0.15%), GBP/USD: 1.5669 (-0.07%), USD/JPY: 94.1700 (-1.93%)
• 10-year US Treasury: 2.187% (-0.041)
Market and Economic News Update:
U.S. stock-index futures trim losses: U.S. stock-index futures pared losses after data showed fewer Americans than forecast filed for jobless claims and retail sales rose more than expected in May. Weekly jobless claims fell 12,000 to a seasonally adjusted 334,000 last week, the Labor Department said today. Economists were expecting a decline of 1,000. Retail sales gained 0.6 percent in May, topping expectations for a rise of 0.4 percent.
European markets decline: European markets fell in trade, tracking sharp losses in Asia, amid uncertainty over whether central banks will scale back stimulus measures. On the economic front, the World Bank cut its 2013 global growth forecast to 2.2 percent, down from a 2.4 percent projection issued in January. The DAX (INDEXDB:DAX) fell 1.5 percent, while the CAC 40 (INDEXEURO:PX1) and the FTSE 100 (INDEXFTSE:UKX) slumped close to a percent. The euro zone blue-chip ESTX 50 PR.EUR (INDEXSTOXX:SX5E) (Euro Stoxx 50) lost 0.9 percent.
Asian markets end lower; Nikkei plunges over 6%: The NIKKEI 225 (INDEXNIKKEI:NI225) plunged into bear market territory as a further rally in the yen hurt exporters. The drop took the benchmark to a fresh ten-week low. The SSE Composite Index (SHA:000001) (Shanghai Composite Index) hit its lowest level in six months as investors got the first chance to react to last week’s dismal economic data after a three-day holiday. The S&P/ASX 200 (INDEXASX:XJO) index fell in trade despite an unexpected improvement in employment during May.
Stocks in News:
H&R Block, Inc. (NYSE:HRB)
H&R Block, Inc. (NYSE:HRB) posted weak fourth quarter results, hurt by a delayed start to the filing season and tax-law changes. The company said earnings came in at $2.42 a share, missing expectations for $2.61 a share. Revenue rose 10 percent to $2.20 billion, but trailed forecasts for $2.28 billion. Shares declined in pre-open session.
Safeway Inc. (NYSE:SWY)
Safeway Inc. (NYSE:SWY) will sell its Canadian assets to grocery chain Sobeys for 5.8 billion Canadian dollars ($5.68 billion) in cash. The transaction is expected to be completed in the fourth quarter. Safeway will use proceeds from the sale to pay down debt and buy back stock. Safeway shares soared 20 following the announcement.
Apple Inc. (NASDAQ:AAPL)
Apple Inc. (NASDAQ:AAPL) is reportedly considering launching iPhones with bigger screens over the next year, according to Reuters. Apple Inc. (NASDAQ:AAPL) has approached suppliers in Asia with plans for the larger displays that could take on rival Samsung’s bigger-screen Galaxy “phablets”, the report cited people with knowledge of the matter. Apple Inc. declined to comment.
Gannett Co., Inc. (NYSE:GCI), Belo Corp (NYSE:BLC)
Media company Gannett Co., Inc. (NASDAQ:GCI) has agreed to acquire Belo Corp (NYSE:BLC) for $1.5 billion in cash, in a deal that will nearly double Gannett’s current broadcast portfolio. Gannett will pay $13.75 per Belo share in cash, 28 percent above its closing price on Wednesday, and assume $715 million in debt.
Clearwire Corporation (NASDAQ:CLWR), DISH Network Corp (NASDAQ:DISH), Sprint Nextel Corporation (NYSE:S)
Clearwire Corporation (NASDAQ:CLWR)’s board recommended that shareholders accept a buyout offer from Dish Network Corp (NASDAQ:DISH), switching from its earlier support for a lower takeover bid from majority shareholder Sprint Nextel Corporation (NYSE:S). Dish is offering $4.40 per share for the wireless operator, compared to Sprint’s $3.40 per share offer.
Yahoo! Inc. (NASDAQ:YHOO)
Yahoo! Inc. (NASDAQ:YHOO) has agreed to acquire photo app maker Ghostbird Software for an undisclosed amount. GhostBird, which makes KitCam and PhotoForge2 apps for smartphones, will no longer offer them for Apple Inc. (NASDAQ:AAPL)’s online App Store, Yahoo said in an e-mailed statement. Shares were largely unchanged in early trade
PVH Corp (NYSE:PVH)
PVH Corp (NYSE:PVH) posted first quarter adjusted earnings that easily beat estimates, sending shares higher in pre-market trading. The parent company of Tommy Hilfiger and Calvin Klein said earnings excluding one-time items were $1.91 a share, compared to the average analysts’ estimate of 1.35 a share. Revenue was in line with expectations at $1.9 billion. In addition, the company handed in better than expected current-quarter revenue guidance.
The Men’s Wearhouse, Inc. (NYSE:MW)
The Men’s Wearhouse, Inc. (NYSE:MW) reported first quarter earnings of 65 cents a share, edging past Street estimates by a dime, on revenue of $617 million that also exceeded forecasts for $605 million. In addition, the clothing retailer provided full-year earnings outlook that were in line with expectations. Shares soared close to 3 percent in trading before the opening bell.
C.R. Bard, Inc. (NYSE:BCR)
Medical equipment maker C.R. Bard, Inc. (NYSE:BCR) increased its quarterly dividend by 5 percent to 21 cents a share, and authorized a $500 million share buyback program. The dividend will be payable on August 2 to shareholders of record on July 22. Shares closed Wednesday at $105.11, and rose in early-hours trading.
Five Below Inc (NASDAQ:FIVE)
Five Below Inc (NASDAQ:FIVE) posted first quarter earnings excluding one-time items of 5 cents a share, on revenue of $96 million that beat estimates of 4 cents a share on sales of $94 million. In addition, the discount retailer provided better than expected current-quarter guidance, sending shares sharply higher in pre-open trading.
SeaWorld Entertainment Inc (NYSE:SEAS)
SeaWorld Entertainment Inc (NYSE:SEAS) announced a quarterly dividend of 20 cents a share, payable on July 1 to shareholders of record on June 20. The payout is estimated to cost the company about $18.7 million a quarter. Shares of the amusement park operator that went public in April were largely unchanged in pre-market trading.
Economic Calendar for Thursday, June 13, 2013:
08:30 A.M. ET: Initial Jobless Claims (June 07)
08:30 A.M. ET: Continuing Jobless Claims (June 01)
08:30 A.M. ET: Import and Export Prices (May)
08:30 A.M. ET: Retail Sales (MoM) (May)
08:30 A.M. ET: Retail Sales ex-Autos (MoM) (May)
10:00 A.M. ET: Business Inventories (April)
10:30 A.M. ET: EIA Natural Gas Report (June 07)
01:00 P.M. ET: 30-Year Bond Auction
04:30 P.M. ET: Fed Balance Sheet
04:30 P.M. ET: Money Supply