Morning Market Update
Stocks that are expected to trade actively in U.S. markets on Friday include: General Electric Company (NYSE:GE), Schlumberger Limited. (NYSE:SLB), Honeywell International Inc. (NYSE:HON), Advanced Micro Devices, Inc. (NYSE:AMD), Best Buy Co., Inc. (NYSE:BBY), VF Corp (NYSE:VFC), Stryker Corporation (NYSE:SYK), Apache Corporation (NYSE:APA), Capital One Financial Corp. (NYSE:COF), Skyworks Solutions Inc (NASDAQ:SWKS), Yelp Inc (NYSE:YELP)
US: Dow Futures: 15470.00 (-0.07%), S&P 500 Futures: 1679.80 (-0.05%), NASDAQ Futures: 3045.50 (-0.07%)
Europe: CAC: 3915.16 (-0.32%), DAX: 8319.38 (-0.21%), FTSE: 6612.16 (-0.35%)
Asia-Pacific: Australia: 4972.10 (-0.43%), China: 1992.65 (-1.54%), Hong Kong: 21362.42 (0.08%), Japan: 14589.91 (-1.50%).
Metals: Gold: 1289.00 (0.37%), Silver: 19.34 (-0.25%), Copper: 3.15 (0.51%)
Energy: Crude Oil: 108.92 (0.81%), Natural Gas: 3.79 (-0.58%)
Commodities: Corn: 4.95 (-0.35%), Soya Bean: 12.66 (-1.36%), Wheat: 6.62 (-0.64%)
Currency: EUR/USD: 1.3110 (0.01%), GBP/USD: 1.5248 (0.14%), USD/JPY: 100.3300 (-0.10%)
10-year US Treasury: 2.520% (-0.009)
Market and Economic News Update:
U.S. stock-index futures little changed: U.S. stock-index futures are pointing to a flat open on Friday as better than expected earnings from General Electric Company (NYSE:GE) and Honeywell International Inc. (NYSE:HON) offset weak results from Google Inc (NASDAQ:GOOG) and Microsoft Corporation (NASDAQ:MSFT). Investors will closely watch the municipal bond market after the city of Detroit filed for Chapter 9 federal bankruptcy protection on Thursday.
European markets decline: European market slipped in trade, as technology stocks retreated following disappointing earnings from Google Inc (NASDAQ:GOOG) and Microsoft Corporation (NASDAQ:MSFT). On the economic front, G-20 finance ministers and central bankers are meeting in Moscow to discuss steps to tackle unemployment and a slow economic recovery. The CAC 40 (INDEXEURO:PX1) lost 0.3 percent to 3915.16, while the DAX (INDEXDB:DAX) gave up 0.2 percent to 8319.38. The FTSE 100 (INDEXFTSE:UKX) dipped 0.4 percent to 6612.16 points. The euro zone blue-chip ESTX 50 PR.EUR (INDEXSTOXX:SX5E) (Euro Stoxx 50) was down 0.3 percent in recent trading.
Asian markets end lower: Asian stocks fell in Friday trading, with the NIKKEI 225 (INDEXNIKKEI:NI225) dropping from a two-month amid a bout of profit-taking, as investors preferred to be on the side-lines ahead of upper-house elections over the weekend. The SSE Composite Index (SHA:000001) (Shanghai Composite Index) tumbled 1.5 percent as property stocks extended their previous day’s losses. The S&P/ASX 200 (INDEXASX:XJO) index retreated further from the 5,000-mark, hurt by losses in resource stocks.
Stocks in News:
Corsair Capital, the event-driven long-short equity hedge fund, gained 6.6% net during the second quarter, bringing its year-to-date performance to 17.5%. Q2 2021 hedge fund letters, conferences and more According to a copy of the hedge fund's second-quarter letter to investors, a copy of which of ValueWalk has been able to review, the largest contributor Read More
General Electric Company (NYSE:GE)
General Electric Company (NYSE:GE) reported second quarter profit of 36 cents per share, one cent above the average analysts’ estimates. Revenue fell 4 percent to $35.1 billion, below consensus estimate of $35.56 billion. Order book increased 4 percent globally and 20 percent in the United States. Revenue at its GE Capital unit dropped 3 percent from the year-ago period, and its earnings fell 9 percent. Shares were up 1.2 percent in recent pre-market trading.
Schlumberger Limited. (NYSE:SLB) (EPA:SLB)
The oilfield services company reported second quarter earnings excluding certain items of $1.15 per share, five cents above Street expectations. Revenue edged 8 percent higher to $11.18 billion, topping estimates of $11.11 billion. Record high international drilling activity offset some weakness in North America. Schlumberger Limited. (NYSE:SLB) (EPA:SLB) shares rose 2.5 percent to $80.50 in trading before the opening bell.
Honeywell International Inc. (NYSE:HON)
The maker of aerospace, building-control and safety products posted better-than-expected quarterly earnings and raised the low end of its full-year profit outlook, sending shares higher in pre-market trading. The company reported second quarter profit of $1.02 billion, or $1.28 per share, up from $902 million, or $1.14 per share, in the year-ago period. Sales edged 2.7 percent higher to $9.69 billion. Analysts had projected earnings of $1.21 per share on revenue of $9.70 billion. Honeywell International Inc. (NYSE:HON) raised the low end of its full-year adjusted-earnings forecast by 5 cents to a range of $4.85 to $4.95 per share.
Advanced Micro Devices, Inc. (NYSE:AMD)
The chipmaker maker swung to a second-quarter loss as lower demand for personal computers hurt sales. Advanced Micro Devices, Inc. (NYSE:AMD) posted an adjusted loss of 9 cents per share, compared to expectations for a loss of 12 cents per share. Revenue for the period came in at $1.161 billion, down from $1.413 billion in the same period last year. Analysts were expecting sales of $1.11 billion. In addition, the company projected current-quarter revenue to increase 22 percent versus the June quarter.
Best Buy Co., Inc. (NYSE:BBY)
The Big Box retailer cut the price of Apple Inc. (NASDAQ:AAPL)’s MacBook Pro by $200, as part of an early back-to-school promotion. The electronics retailer will offer a discount of $300 for students and $200 for regular customers during the ten-day sale. Shares of Best Buy Co., Inc. (NYSE:BBY) were inactive in pre-market trading.
VF Corp (NYSE:VFC)
The clothing maker reported better than expected second quarter profit amid strong sales of high-margin merchandise and lower cotton costs. Excluding certain items, earnings were of $1.27 per share, ten cents above the average analysts’ estimates, with revenue in line with consensus. In addition, the company raised its full year forecast by 10 cents to $10.85 a share before one-time items.
Stryker Corporation (NYSE:SYK)
Stryker Corporation (NYSE:SYK) reported second quarter earnings excluding one-time items of $1 per share, missing expectations for $1.03 per share, while sales stood at $2.21 billion, edging past projections for $2.19 billion. In addition, the medical device maker provided full-year earnings outlook that fell-short of Street expectations. Shares were largely unchanged in pre-market trading.
Apache Corporation (NYSE:APA)
The energy company will sell its Gulf of Mexico shelf assets to private-equity firm Riverstone Holdings LLC for $3.75 billion in cash. The transaction is expected to close by the end of September. The sale to Riverstone’s Fieldwood Energy unit includes 1.9 million net acres with 239 million barrels of oil equivalent in proved reserves. Shares rose in pre-market trading.
Capital One Financial Corp. (NYSE:COF)
Capital One Financial Corp. (NYSE:COF) reported strong third quarter results as a recovery in U.S. consumer spending boosted its credit card business. Earnings came in at $1.87 per share, topping Street expectations for $1.72 per share. Revenue increased 12 percent to $5.64 billion, compared to the average analysts’ estimate of $5.34 billion. Shares rallied in pre-open trading.
Skyworks Solutions Inc (NASDAQ:SWKS)
The semiconductor company reported better than expected third quarter earnings, and announced a new $250 million share buyback program, sending shares higher in pre-market trading. Excluding items, Skyworks Solutions Inc (NASDAQ:SWKS) earned 54 cents per share, beating the consensus estimate of 53 cents per share. Revenue was in line with expectations at $436.1 million.
Yelp Inc (NYSE:YELP)
The business review website has agreed to acquire restaurant reservation startup SeatMe in a deal worth $12.7 million in cash and stock. San Francisco-based SeatMe provides software to restaurants and bars that help manage table assignments and accept online reservations. The transaction is expected to close next week. OpenTable currently facilitates Yelp’s online reservation process. Yelp Inc (NYSE:YELP) shares edged higher in early-hours trading.