Morning Market Update
Stocks that are expected to trade actively in U.S. markets on Monday include: AT&T Inc. (NYSE:T), Netflix, Inc. (NASDAQ:NFLX), Dreamworks Animation Skg Inc (NASDAQ:DWA), Smithfield Foods, Inc. (NYSE:SFD), Weyerhaeuser Company (NYSE:WY), Advanced Micro Devices, Inc. (NYSE:AMD), The Boeing Company (NYSE:BA), Zoetis Inc (NYSE:ZTS), Johnson & Johnson (NYSE:JNJ), Lowe’s Companies, Inc. (NYSE:LOW), Orchard Supply Hardware Stores Corp (NASDAQ:OSH) and Capital One Financial Corp. (NYSE:COF).
Half Moon Capital Returns 12.2% In 2020 Despite Short Position Drag
Eric DeLamarter's Half Moon Capital produced a return of 8% net of fees in the fourth quarter of 2020, bringing the full-year return to 12.2%, according to a copy of its fourth-quarter letter, which ValueWalk has been able to review. The fund maintained an average net exposure of 45% during the period. Q4 2020 hedge Read More
• US: Dow Futures: 15098.00 (0.70%), S&P 500 Futures: 1631.10 (0.80%), NASDAQ Futures: 2963.50 (0.90%)
• Europe: CAC: 3863.35 (1.53%), DAX: 8232.45 (1.29%), FTSE: 6351.92 (0.69%)
• Asia-Pacific: Australia: 4825.90 (0.71%), China: 2156.21 (-0.27%), Hong Kong: 21225.90 (1.21%), Japan: 13033.12 (2.66%).
• Metals: Gold: 1388.10 (0.75%), Silver: 21.96 (1.75%), Copper: 3.20 (0.53%)
• Energy: Crude Oil: 97.72 (1.07%), Natural Gas: 3.77 (-1.21%)
• Commodities: Corn: 5.31 (-0.65%), Soya Bean: 12.90 (-0.75%), Wheat: 6.77 (-1.20%)
• Currency: EUR/USD: 1.3337 (-0.07%), GBP/USD: 1.5726 (0.12%), USD/JPY: 94.8600 (0.58%)
• 10 year US Treasury: 2.134% (0.005)
Market and Economic News Update:
U.S. stock-index futures rise: U.S. stock-index futures are pointing to a higher open on Monday after a gauge of manufacturing in the New York region picked back up in June. The New York Fed’s “Empire State” manufacturing index jumped to 7.84 in June from minus 1.43 in May, compared to estimates for zero. The National Association of Home Builders/Wells Fargo is scheduled to report the housing market index at 10 A.M. ET. Economists are expecting a reading of 45 in June.
European markets gain: European markets tracked Asian stocks higher, as investors focused on whether the U.S. Federal Reserve will make any changes to its monetary policy when it meets later this week. The DAX (INDEXDB:DAX) and the CAC 40 (INDEXEURO:PX1) were up more than a percent, while the FTSE 100 (INDEXFTSE:UKX) gained 0.7 percent. The euro zone blue-chip ESTX 50 PR.EUR (INDEXSTOXX:SX5E) (Euro Stoxx 50) jumped 1.5 percent.
Asian markets end higher; Nikkei soars close to 3%: Asian stocks closed mostly higher as investors look ahead to this week’s Federal Reserve policy meeting. The NIKKEI 225 (INDEXNIKKEI:NI225) staged a strong recovery to regain the 13,000 mark amid renewed buying in exporter stocks. The HANG SENG INDEX (INDEXHANGSENG:HIS) climbed 1.2 percent to end at 21225.90 points, as gains in property stocks more than offset a sharp fall in shares of Industrial & Commercial Bank of China Ltd. The S&P/ASX 200 (INDEXASX:XJO) index closed at its highest level in over a week, helped by a rally in banking stocks.
Stocks in News:
AT&T Inc. (NYSE:T)
Spanish telecom major Telefonica S.A. (ADR) (NYSE:TEF) has denied it received any takeover approach from AT&T Inc. (NYSE:T), following a report in El Mundo newspaper that the Spanish government had blocked a 70 billion-euro ($93 billion) friendly offer from the U.S. company. Spain’s government blocked the bid because it considers the deal to be a threat to its strategic interests, El Mundo reported earlier on Monday, citing unnamed sources.
Netflix, Inc. (NASDAQ:NFLX), Dreamworks Animation Skg Inc (NASDAQ:DWA)
Netflix, Inc. (NASDAQ:NFLX) has signed a multi-year deal with Dreamworks Animation Skg Inc (NASDAQ:DWA) obtain original programming. Financial terms of the agreement, which will include exclusive access to over 300 hours of programming, weren’t disclosed. Netflix shares close Friday at $213.99 while class A shares of DreamWorks Animation closed at $22.81. Both stocks were inactive pre-market.
Smithfield Foods, Inc. (NYSE:SFD)
Starboard Value LP, a large activist investor in Smithfield Foods, Inc. (NYSE:SFD), has urged the company to ditch its deal to sell itself to China’s Shuanghui International, and split itself up instead, The Wall Street Journal reported late Sunday. Starboard, which holds a 5.7 percent stake in Smithfield, said in a letter to the board of the U.S. hog producer that its sum-of-the-parts valuation of the company was between $44 and $55 a share, compared with the $34 a share offer from Shuanghui.
Weyerhaeuser Company (NYSE:WY)
Weyerhaeuser Company (NYSE:WY), one of the world’s largest lumber companies, has agreed to acquire Longview Timber LLC from affiliates of Brookfield Asset Management Inc. (USA) (NYSE:BAM) for $2.65 billion including debt. Separately, Weyerhaeuser has named Doyle Simons to succeed Dan Fulton, as president and chief executive officer, effective August 1. Shares of Weyerhaeuser jumped close to 3 percent in pre-market trading.
Advanced Micro Devices, Inc. (NYSE:AMD)
Shares of Advanced Micro Devices, Inc. (NYSE:AMD) soared in early-hours trading following a weekend article in Barron’s that said the chip maker’s stock price could double if it utilizes its 2012 acquisition of SeaMicro to gain market share in the mainstream server-computer space.
The Boeing Company (NYSE:BA)
Qatar Airways has signed an agreement to buy up to nine 777-300ER long-range jets from The Boeing Company (NYSE:BA), the airline said at the Paris Air show on Monday. The deal would be valued at $2.8 billion at list prices, and the first planes are scheduled for delivery early next year.
Zoetis Inc (NYSE:ZTS)
Zoetis Inc (NYSE:ZTS), an animal medicine maker that is being spun off from Pfizer Inc. (NYSE:PFE), will join the S&P 500 Index after the close of trading on June 21. Zoetis will replace financial service company First Horizon National Corporation (NYSE:FHN), which moves to the S&P MidCap 400, S&P Dow Jones Indices said after the close of trading on Friday. Zoetis shares gained 2 percent in pre-open trading,
Johnson & Johnson (NYSE:JNJ)
Johnson & Johnson (NYSE:JNJ) has agreed to acquire Aragon Pharmaceuticals Inc., a privately-held drug developer that is running a mid-stage clinical trial for a prostate cancer drug. Under the terms of the deal, expected to close during the third quarter of the year, Johnson & Johnson will pay $650 million upfront and potential milestone payments of up to $350 million for Aragon.
Lowe’s Companies, Inc. (NYSE:LOW), Orchard Supply Hardware Stores Corp (NASDAQ:OSH)
Home improvement retailer Lowe’s Companies, Inc. (NYSE:LOW) will buy most of the assets of Orchard Supply Hardware Stores Corp (NASDAQ:OSH), which has filed for Chapter 11 bankruptcy protection on Monday, for $205 million in cash. Under the terms of the deal, Lowe’s will acquire at least 60 of Orchard’s 91 hardware and garden stores in California, with an option to buy the rest.
Capital One Financial Corp. (NYSE:COF)
Capital One Financial Corp. (NYSE:COF) said its 30-day delinquency rate for U.S. credit cards fell to 2.97 percent in May from 3.14 percent a month earlier. Delinquencies at its international credit-card business fell to 3.69 percent last month from 3.8 percent in April. Shares closed Friday at $61.01 and were inactive in pre-market trading.
Economic Calendar for Monday, June 17, 2013:
08:30 A.M. ET: NY Empire State Manufacturing Index (June)
10:00 A.M. ET: NAHB Housing Market Index (June)
11:30 A.M. ET: 3-Month Bill Auction
11:30 A.M. ET: 6-Month Bill Auction