Morning Market Update
Stocks that are expected to trade actively in U.S. markets on Tuesday include: Sprint Nextel Corporation (NYSE:S), DISH Network Corp (NASDAQ:DISH), Texas Instruments Incorporated (NASDAQ:TXN), Lululemon Athletica inc. (NASDAQ:LULU), General Mills, Inc. (NYSE:GIS), United Continental Holdings Inc (NYSE:UAL), Diamond Foods, Inc. (NASDAQ:DMND) and CYS Investments Inc (NYSE:CYS).
Market Levels
• US: Dow Futures: 15105.00 (-0.81), S&P 500 Futures: 1625.10 (-1.04%), NASDAQ Futures: 2959.00 (-0.94%)
• Europe: CAC: 3790.39 (-1.91%), DAX: 8171.12 (-1.64%), FTSE: 6297.14 (-1.61%)
• Asia-Pacific: Australia: 4757.10 (0.41%), China: 2210.90 (0.00%), Hong Kong: 21354.66 (-1.22%), Japan: 13317.62 (-1.48%).
• Metals: Gold: 1373.50 (-0.90%), Silver: 21.58 (-1.60%), Copper: 3.19 (-1.54%)
• Energy: Crude Oil: 94.48 (-1.35%), Natural Gas: 3.78 (-0.66%)
• Commodities: Corn: 5.47 (-2.23%), Soya Bean: 13.19 (-1.01%), Wheat: 6.89 (-1.15%)
• Currency: EUR/USD: 1.3238 (-0.14%), GBP/USD: 1.5537 (-0.22%), USD/JPY: 96.9800 (-1.80%)
• 10 year US Treasury: 2.245% (0.035)
Market and Economic News Update:
U.S. stock-index futures deep in negative territory: U.S. stock-index futures are pointing to a lower open on Tuesday amid weakness in financial markets around the globe. On the economic front, wholesale inventory data for April is due at 10 A.M. ET. Analysts are projecting that inventories rose by 0.2 in April.
European markets tumble: European markets tumbled in Tuesday trading as a two-day hearing on the legality of the European Central Bank’s bond-buying program got under way in a German constitutional court. The DAX (INDEXDB:DAX), the CAC 40 (INDEXEURO:PX1) and the FTSE 100 (INDEXFTSE:UKX) all fell close to 2 percent. The euro zone blue-chip ESTX 50 PR.EUR (INDEXSTOXX:SX5E) (Euro Stoxx 50) dropped 1.6 percent.
Asian markets end lower; Nikkei down 1.5%: The NIKKEI 225 (INDEXNIKKEI:NI225) fell in trade after the Bank of Japan failed to address recent market volatility in its monetary policy statement, disappointing investors. The HANG SENG INDEX (INDEXHANGSENG:HIS) fell more than a percent to close at 21354.66 points. The S&P/ASX 200 (INDEXASX:XJO) index was the only gainer in the region, amid gains in resource stocks. The SSE Composite Index (SHA:000001) was closed for public holiday.
Stocks in News:
Sprint Nextel Corporation (NYSE:S), DISH Network Corp (NASDAQ:DISH)
Softbank Corp (TYO:9984) raised its takeover offer for Sprint Nextel Corporation (NYSE:S) to $21.6 billion, compared to the prior offer of $20.1 billion, as it tries to ward-off a competing bid from DISH Network Corp (NASDAQ:DISH). Under the terms of the revised deal, the Japanese telecom operator will buy shares from current Sprint shareholders at $7.65 a share, up from the previous offer of $7.30 a share.
Texas Instruments Incorporated (NASDAQ:TXN)
Texas Instruments Incorporated (NASDAQ:TXN) narrowed its second quarter outlook, and now expects to earn between 39 cents a share and 43 cents a share, on revenue of between $2.99 billion and $3.11 billion, against current estimates for 42 cents a share on sales of $3.06 billion. Shares fell in pre-market trading following the announcement.
Lululemon Athletica inc. (NASDAQ:LULU)
Lululemon Athletica inc. (NASDAQ:LULU) posted first quarter earnings of 32 cents a share on revenue of $346 million, beating expectations for 30 cents a share on sales of $341 million. In addition, the yoga-wear retailer provided current-quarter outlook that exceeded Street estimates. But shares tumbled in early morning trade after the company announced Chief Executive Officer Christine Day will step down.
General Mills, Inc. (NYSE:GIS)
General Mills, Inc. (NYSE:GIS) raised its full-year earnings outlook, sending shares higher in pre-market trading. The food processor now expects fiscal 2013 earning of between $2.68 a share and $2.69 a share. The new guidance was still below analysts’ projections for $2.70 a share. General Mills also reiterated its 2014 forecast of adjusted earnings growth in the high-single digits.
United Continental Holdings Inc (NYSE:UAL)
United Continental Holdings Inc (NYSE:UAL) said consolidated traffic decreased 0.8 percent in May, and consolidated capacity fell 1.7 percent last month, compared to the same period a year ago. However, percentage of seats filled, or load factor, a closely watched number in the industry, increased to 84.4 percent from 83.6 percent. Shares slipped in pre-open session.
Diamond Foods, Inc. (NASDAQ:DMND)
Diamond Foods, Inc. (NASDAQ:DMND) reported first quarter earnings of 5 cents a share on sales of $185 million, easily topping expectations for a loss of 17 cents a share on revenue of $176 million. In addition, the packaged foods company said fourth-quarter sales should come in below the third quarter number, and named Raymond Silcock as its new chief financial officer.
CYS Investments Inc (NYSE:CYS)
CYS Investments Inc (NYSE:CYS) raised its quarterly dividend by 6.3 percent to 34 cents a share from 32 cents a share. The dividend is payable July 17 to shareholders of record as of June 25. Based on its Monday closing price of $10.23, the new dividend yield comes in at 13.3 percent. Shares of the real estate investment trust edged higher in early-hours trading.
Economic Calendar for Tuesday, June 11, 2013:
07:30 A.M. ET: NFIB Business Optimism Index (May)
07:45 A.M. ET: ICSC-Goldman Store Sales
08:55 A.M. ET: Redbook Index (YoY) (June 2)
08:55 A.M. ET: Redbook Index (MoM) (June 2)
10:00 A.M. ET: Wholesale Inventories (April)
11:30 A.M. ET: 4-Week Bill Auction
01:00 P.M. ET: 3-Year Note Auction
