Morning Market Update
Stocks that are expected to trade actively in U.S. markets on Tuesday include: Sony Corporation (ADR) (NYSE:SNE), Korn/Ferry International (NYSE:KFY), Liberty Global PLC (NASDAQ:LBTYA), Vodafone Group Plc (ADR) (NASDAQ:VOD), Johnson Controls Inc (NYSE:JCI), The Boeing Company (NYSE:BA), Yahoo! Inc. (NASDAQ:YHOO), Electronic Arts Inc. (NASDAQ:EA), Activision Blizzard, Inc. (NASDAQ:ATVI), Host Hotels and Resorts Inc (NYSE:HST), Campbell Soup Company (NYSE:CPB) and GenMark Diagnostics, Inc (NASDAQ:GNMK).
David Einhorn's Greenlight Capital was down 0.1% for the first quarter, underperforming the S&P 500's 6.2% return. In their letter to investors, which was reviewed by ValueWalk, the Greenlight team said a lot happened during the first quarter even though they made just a handful of changes to the portfolio and essentially broke even. Q1 Read More
US: Dow Futures: 15150.00 (0.19%), S&P 500 Futures: 1637.10 (0.21%), NASDAQ Futures: 2970.00 (0.21%)
Europe: CAC: 3865.76 (0.05%), DAX: 8234.17 (0.22%), FTSE: 6390.47 (0.95%)
Asia-Pacific: Australia: 4814.40 (-0.24%), China: 2159.29 (0.14%), Hong Kong: 21225.28 (-0.01%), Japan: 13007.28 (-0.20%).
Metals: Gold: 1372.30 (-0.78%), Silver: 21.66 (-0.47%), Copper: 3.17 (-0.84%)
Energy: Crude Oil: 98.12 (0.36%), Natural Gas: 3.92 (1.03%)
Commodities: Corn: 5.36 (1.69%), Soya Bean: 12.89 (-1.04%), Wheat: 6.92 (-0.25%)
Currency: EUR/USD: 1.3353 (-0.10%), GBP/USD: 1.5566 (-0.99%), USD/JPY: 95.6800 (1.24%)
10-year US Treasury: 2.213% (0.033)
Market and Economic News Update:
U.S. stock-index futures rise: U.S. stock-index futures are pointing to a higher open on Tuesday ahead of the two-day Federal Reserve meeting. The meeting will conclude with a statement and press conference on Wednesday. On the economic front, consumer prices gained 0.1 percent in May, and consumer prices outside of food and energy edged 0.2 percent last month, according to the Labor Department. A separate report showed housing starts rose 6.8 percent in May to a seasonally adjusted annual rate of 914,000 units, trailing expectations for a 950,000-unit rate.
European markets gain: European markets are up in trade following better-than-expected economic data from the region. The closely watched German ZEW indicator came in at 38.5 for June, better than analysts’ estimates of 38.1, and higher than a previous reading of 36.4. In other economic news, U.K. CPI inflation data for May stood at 2.7 percent, compared to estimates of 2.6 percent. The DAX (INDEXDB:DAX) and the CAC 40 (INDEXEURO:PX1) were modestly higher, while the FTSE 100 (INDEXFTSE:UKX) jumped a percent in trade. The euro zone blue-chip ESTX 50 PR.EUR (INDEXSTOXX:SX5E) (Euro Stoxx 50) was largely unchanged in Tuesday trading.
Asian markets end mixed: Asian stocks struggled for direction as investors await clues on how long the U.S. Federal Reserve will maintain its monthly bond purchases. The NIKKEI 225 (INDEXNIKKEI:NI225) gave up gains made earlier in the session to end 0.2 percent lower. The HANG SENG INDEX (INDEXHANGSENG:HIS) ended fractionally lower in a choppy trading session on Tuesday. The S&P/ASX 200 (INDEXASX:XJO) index slipped 0.2 percent, with banks and retailers ending mostly lower.
Stocks in News:
Sony Corporation (NYSE:SNE)
New York-based hedge fund Third Point LLC increased its stake in Sony Corporation (ADR) (NYSE:SNE), and urged the embattled Japanese company to launch an initial public offering of its entertainment business. Third Point raised its stake to 7 percent, or about 70 million shares, up from 6.5 percent last month, the hedge fund’s CEO Daniel Loeb said in a letter to Sony’s management on Tuesday.
Korn/Ferry International (NYSE:KFY)
The executive search firm reported better than expected fourth quarter results, sending shares higher in pre-open trading. Korn/Ferry International (NYSE:KFY) earned 32 cents a share, excluding one-time items, topping expectations by a penny a share. Revenue came in at $239 million, also edging past estimates of $224 million. In addition, Korn/Ferry forecast current-quarter earnings of between 26 and 32 cents per share, compared to Wall Street projections of 27 cents per share.
Liberty Global PLC (NASDAQ:LBTYA), Vodafone Group Plc (ADR) (NASDAQ:VOD)
Liberty Global PLC (NASDAQ:LBTYA), the media group controlled by John Malone, has made a preliminary offer for Kabel Deutschland Holding AG (ETR:KD8), potentially setting the stage for a bidding war between the cable company and U.K. telecom major Vodafone Group Plc (ADR) (NASDAQ:VOD) for control of Germany’s largest cable operator with a market value of about 7.3 billion euros ($9.8 billion).
The Boeing Company (NYSE:BA)
The Boeing Company (NYSE:BA) unveiled a bigger version of its next-generation 787 Dreamliner at the Paris Air Show today, and announced commitments for 102 of the jets from airlines and leasing groups around the world, worth nearly $30 billion at list prices. The third variant of the long-distance Dreamliner family will have a range of 7,000 nautical miles, with a seating capacity for up to 330 passengers.
Yahoo! Inc. (NASDAQ:YHOO)
Yahoo! Inc. (NASDAQ:YHOO) has offered to buy social email startup Xobni for up to $40 million, and is also considering a $50 million offer for automated video app maker Qwiki, according to All Things D. Shares of Yahoo closed Monday at $26.54, and were flat in pre-market trading.
Johnson Controls Inc (NYSE:JCI)
Johnson Controls Inc (NYSE:JCI) is reportedly in talks with several private equity firms about selling it’s roughly $1 billion automotive electronics unit. The company put its automotive electronics unit on the auction block earlier this year, but buyout interest from many rival companies faltered, prompting Johnson Controls to reach out to private equity firms.
Electronic Arts Inc. (NASDAQ:EA), Activision Blizzard, Inc. (NASDAQ:ATVI)
Videogame stocks, including Electronic Arts Inc. (NASDAQ:EA) and Activision Blizzard, Inc. (NASDAQ:ATVI) could be in focus today after market research firm NPD Group said sales of new videogame products in U.S. retail stores fell 25 percent in May to $386.3 million, from $517 million in the same period last year. Hardware sales plunged 32 percent to $96 million, compared with the year ago period, while software sales for the current generation consoles dropped 31 percent to $175.1 million.
Host Hotels and Resorts Inc (NYSE:HST)
Host Hotels and Resorts Inc (NYSE:HST) raised its quarterly dividend by 10 percent to 11 cents per share. The dividend is payable on July 15 to shareholders of record June 28. Shares of the real estate investment trust were largely unchanged in early-hours trading.
Campbell Soup Company (NYSE:CPB)
Campbell Soup Company (NYSE:CPB) will buy Danish snack manufacturer Kelsen Group from private-equity firm Maj Invest for an undisclosed amount. The deal will help Campbell expand its presence in the Chinese market, where Kelsen is one of top sellers of sweet biscuits. Campbell Soup shares closed Monday at $45.13, and gained in early trade following the announcement.
GenMark Diagnostics, Inc (NASDAQ:GNMK)
GenMark Diagnostics, Inc (NASDAQ:GNMK) lowered its full-year revenue guidance, sending shares tumbling in pre-market trading. The molecular diagnostic company now expects 2013 sales to be $30 million, compared to its previous view of $35 million, which was the consensus analysts’ forecast. The company cited reimbursement challenges and uncertainties relating to the future revenue contribution from its largest customer as the reasons for the revenue cut.
Economic Calendar for Tuesday, June 18, 2013:
07:45 A.M. ET: ICSC-Goldman Store Sales
08:30 A.M. ET: Consumer Price Index (YoY) (May)
08:30 A.M. ET: Consumer Price Index ex-Food & Energy (YoY) (May)
08:30 A.M. ET: Housing Starts (MoM) (May)
08:30 A.M. ET: Building Permits (MoM) (May)
08:55 A.M. ET: Redbook Index (MoM) (June 09)
08:55 A.M. ET: Redbook Index (YoY) (June 09)
11:30 A.M. ET: 4-Week Bill Auction