Morning Market Update
Stocks that are expected to trade actively in U.S. markets on Thursday include:
Facebook Inc (NASDAQ:FB), General Motors Company (NYSE:GM), 3M Co (NYSE:MMM), Forest Laboratories, Inc. (NYSE:FRX), Perrigo Company (NYSE:PRGO), The Dow Chemical Company (NYSE:DOW), QUALCOMM, Inc. (NASDAQ:QCOM), Warner Chilcott Plc (NASDAQ:WCRX), Visa Inc (NYSE:V), Amgen, Inc. (NASDAQ:AMGN), Onyx Pharmaceuticals, Inc. (NASDAQ:ONXX), The Cheesecake Factory Incorporated (NASDAQ:CAKE)
Michele Ragazzi's Giano Capital returned 1.9% for March, taking the fund's year-to-date performance to 1.7%. Since its inception, Ragazzi's flagship fund has produced a compound annual return of 7.8%. According to a copy of the €10 million fund's March update, a copy of which ValueWalk has been able to review, Giano's most significant investment at Read More
US: Dow Futures: 15442.00 (-0.37%), S&P 500 Futures: 1677.50 (-0.37%), NASDAQ Futures: 3052.00 (0.13%)
Europe: CAC: 3940.13 (-0.57%), DAX: 8292.81 (-1.04%), FTSE: 6579.51 (-0.62%)
Asia-Pacific: Australia: 5035.60 (0.01%), China: 2021.17 (-0.60%), Hong Kong: 21900.96 (-0.31%), Japan: 14562.93 (-1.16%).
Metals: Gold: 1319.60 (-0.01%), Silver: 20.02 (0.02%), Copper: 3.16 (-0.47%)
Energy: Crude Oil: 104.52 (-0.83%), Natural Gas: 3.70 (0.05%)
Commodities: Corn: 4.77 (-1.24%), Soya Bean: 12.36 (-0.46%), Wheat: 6.50 (-0.31%)
Currency: EUR/USD: 1.3228 (0.20%), GBP/USD: 1.5319 (0.01%), USD/JPY: 99.6500 (-0.62%)
10-year US Treasury: 2.588% (0.001)
Market and Economic News Update:
U.S. stock-index futures down: U.S. stock-index futures are pointing to a lower open on Thursday, with the S&P 500 index poised for a third straight day of losses, despite a number of positive earnings reports. In economic news, weekly jobless claims rose by 7,000 to a seasonally adjusted 343,000, last week. Economists had projected a reading of 340,000. Meanwhile, U.S. durable-goods orders increased 4.2 percent in June, with non-defense capital goods orders excluding aircraft rising 0.7 percent last month, according to the Commerce Department. Amazon.com, Inc. (NASDAQ:AMZN), Expedia Inc (NASDAQ:EXPE), Zynga Inc (NASDAQ:ZNGA), and Starbucks Corporation (NASDAQ:SBUX) are scheduled to post quarter results after the close of trading.
European markets decline: European markets are down in trade amid concerns about the growth outlook in China, and weak earnings from a spate of major European companies. On the economic front, the U.K. recorded second quarter GDP growth of 0.6 percent, according to preliminary estimates. Also the German Ifo Business Climate Index rose to 106.2 in July, above expectations for 106.1. The CAC 40 (INDEXEURO:PX1) lost 0.6 percent to 3940.13, while the DAX (INDEXDB:DAX) slid 1 percent to 8292.81. The FTSE 100 (INDEXFTSE:UKX) fell 0.6 percent to 6579.51 points. The euro zone blue-chip ESTX 50 PR.EUR (INDEXSTOXX:SX5E) (Euro Stoxx 50) was down 0.9 per cent in recent trading.
Asian stocks end lower, Nikkei down more than 1%: Asian markets closed lower on Thursday despite news that Beijing unveiled new stimulus measures. Robust economic data from the U.S. and Europe helped cap losses, but the overall sentiment was overwhelmingly negative through-out the trading session. The NIKKEI 225 (INDEXNIKKEI:NI225) ended 1.1 percent lower, following disappointing quarterly corporate earnings. The SSE Composite Index (SHA:000001) (Shanghai Composite Index) shed 0.6 percent amid renewed credit crunch concerns. The S&P/ASX 200 (INDEXASX:XJO) index ended the day largely unchanged.
Stocks in News:
Facebook Inc (NASDAQ:FB)
Shares of Facebook Inc (NASDAQ:FB) rallied in pre-market trading after the social-networking giant easily beat second-quarter profit and sale expectations, helped by strong growth in mobile advertising revenue. Excluding one-time items, Facebook said it earned 19 cents per share, on revenue of $1.81 billion, exceeding Street expectations for 14 cents per share on sales of $1.62 billion. Revenue from mobile advertising accounted for about 41 percent of its total ad revenue in the second quarter, up from 30 percent in the previous quarter. Facebook also said daily and monthly active users soared more than 20 percent on year-on-year basis.
General Motors Company (NYSE:GM)
The automaker reported better than expected quarterly earnings amid a surge in U.S. pick-up truck sales. Excluding items, GM earned 84 cents per share in the second quarter, exceeding the 76-cents-per-share average analysts’ estimate. Revenue edged 4 percent higher to $39.1 billion from $37.6 billion in the year-ago period. The company’s North America unit generated a pre-tax profit of $1.98 billion, and losses in Europe narrowed by $284 million to $110 million. Shares were up more than 2 percent in recent trading.
3M Co (NYSE:MMM)
3M Co (NYSE:MMM)’s second-quarter earnings rose 2.6 percent as the Dow component posted sales growth across most of its business lines. Second-quarter net income increased to $1.2 billion, or $1.71 per share, from $1.17 billion, or $1.66 per share in the same period last year. Revenue rose 2.9 percent to $7.75 billion. Analysts were expecting earnings of $1.70 per share on revenue of $7.77 billion.
Forest Laboratories, Inc. (NYSE:FRX), Perrigo Company (NYSE:PRGO)
Forest Laboratories, Inc. (NYSE:FRX) and Perrigo Company (NYSE:PRGO) are preparing to submit takeover bids for Irish drug maker Elan Corporation, plc (ADR) (NYSE:ELN), Reuters reported late yesterday. Elan rejected a hostile take-over bid by U.S. investment firm Royalty Pharma in June, and instead put itself up for sale. The bids from Forest and Perrigo are expected this week, the report cited people familiar with the matter.
The Dow Chemical Company (NYSE:DOW)
The largest U.S. chemical maker by revenue earned 64 cents per share for the second quarter, topping estimates by one cent, with revenues also above the consensus estimate. Dow’s agriculture sciences business benefited from strong demand from Latin American, and recorded the highest growth among its six operating segments. Shares jumped more than a percent in pre-market trading.
QUALCOMM, Inc. (NASDAQ:QCOM)
The semiconductor company reported better than expected third quarter revenue, and forecast current quarter sales that may exceed analysts’ estimates, sending shares sharply higher in pre-open trading. Excluding items, earnings were $1.03 per share, in line with expectations, on revenue of $6.24 billion that easily beat the consensus estimate of $6.06 billion.
Warner Chilcott Plc (NASDAQ:WCRX)
The U.S. Food and Drug Administration has approved Warner Chilcott Plc (NASDAQ:WCRX)’s oral chewable contraceptive LO Minastrin FE. The pharmaceutical company said it is currently developing commercial launch plans for the product. Shares closed Wednesday at $20.08 and were inactive in pre-market trading.
Visa Inc (NYSE:V)
Visa Inc (NYSE:V) posted better than expected quarterly results as consumer spending on credit and debit cards climbed. Third quarter earnings came in at $1.88 per share, on sales of $3 billion, edging past expectations for $1.79 a share on revenue of $2.89 billion. In addition, the company raised its full-year outlook for earnings and revenue, and authorized a $1.5 billion share buyback program, sending shares higher in pre-market trading.
Amgen, Inc. (NASDAQ:AMGN), Onyx Pharmaceuticals, Inc. (NASDAQ:ONXX)
The world’s largest biotechnology company is in talks with Bank of America Corp (NYSE:BAC), JPMorgan Chase & Co. (NYSE:JPM) and Barclays PLC (ADR) (NYSE:BCS) to finance a possible buyout of Onyx Pharmaceuticals, Inc. (NASDAQ:ONXX), according to a Reuters report. Amgen’s preliminary $120 per-share offer for the cancer drug maker was rejected by the company’s board last month. Onyx shares have soared more than 50 percent since the company put itself up for sale on June 30.
The Cheesecake Factory Incorporated (NASDAQ:CAKE)
The restaurant chain reported second quarter adjusted earnings of 54 cents per share, on sales of $470 million, trailing expectations for 57 cents a share on revenue of $473 million. Cheesecake Factory increased its quarterly dividend to 14 cents per share from 12 cents per share, and said it will set aside up to $125 million towards stock repurchase in the second half of the year. Shares tumbled in early-hours trading.
Economic Calendar for Thursday, July 25, 2013:
08:30 A.M. ET: Durable Goods Orders (June)
08:30 A.M. ET: Durable Goods Orders ex-Transportation (June)
08:30 A.M. ET: Initial Jobless Claims (July 19)
08:30 A.M. ET: Continuing Jobless Claims (July 13)
10:30 A.M. ET: EIA Natural Gas Storage change (July 19)
11:00 A.M. ET: Kansas Fed Manufacturing Activity (July)
01:00 P.M. ET: 7-Year Note Auction
04:30 P.M. ET: Fed Balance Sheet
04:30 P.M. ET: Money Supply