Morning Market Update
Stocks that are expected to trade actively in U.S. markets on Tuesday include: Goldman Sachs Group Inc (NYSE:GS), Johnson & Johnson (NYSE:JNJ), The Coca-Cola Company (NYSE:KO), Cintas Corporation (NASDAQ:CTAS), The J.M. Smucker Company (NYSE:SJM), Heidrick & Struggles International, Inc. (NASDAQ:HSII).
Prescience Partners returned 6.75% for the second quarter, underperforming the S&P 500's 8.55% return but coming out ahead of the Barclay Equity Long/ Short Index's 2.62% return. However, for the first six months of the year, Prescience is up 30.66%, doubling the S&P's 15.25% return and smashing the Barclay Equity Long/ Short Index's 9.27% return. Read More
US: Dow Futures: 15414.00 (-0.01%), S&P 500 Futures: 1676.70 (-0.05%), NASDAQ Futures: 3075.25 (0.07%)
Europe: CAC: 3856.62 (-0.57%), DAX: 8203.11 (-0.39%), FTSE: 6589.29 (0.05%)
Asia-Pacific: Australia: 4986.00 (0.10%), China: 2065.72 (0.31%), Hong Kong: 21312.38 (0.04%), Japan: 14599.12 (0.64%).
Metals: Gold: 1286.80 (0.26%), Silver: 19.87 (0.16%), Copper: 3.17 (0.92%)
Energy: Crude Oil: 106.84 (0.49%), Natural Gas: 3.63 (-1.20%)
Commodities: Corn: 5.16 (-0.69%), Soya Bean: 12.83 (0.30%), Wheat: 6.77 (-1.54%)
Currency: EUR/USD: 1.3129 (0.51%), GBP/USD: 1.5089 (-0.07%), USD/JPY: 99.4200 (-0.44%)
10-year US Treasury: 2.539% (0.002)
Market and Economic News Update:
U.S. stock-index futures little changed: U.S. stock-index futures are pointing to a flat open on Tuesday after a slew of mixed earnings reports. On the economic front, consumer price index rose 0.5 percent in June, compared to expectations for a 0.3 percent rise. In other economic news, industrial production data will be released at 9:15 A.M. ET, with analysts expecting a gain of 0.3 percent last month.
European markets mixed: European stocks struggled for direction amid investor caution ahead of Federal Reserve chairman Ben Bernanke’s annual testimony on Wednesday for clues on the direction of U.S monetary stimulus. The CAC 40 (INDEXEURO:PX1) fell 0.6 percent to 3856.62, while the DAX (INDEXDB:DAX) lost 0.4 percent to 8203.11. The FTSE 100 (INDEXFTSE:UKX) was flat in trade. The euro zone blue-chip ESTX 50 PR.EUR (INDEXSTOXX:SX5E) (Euro Stoxx 50) was down 0.7 percent in recent trading.
Asian markets rise: Asian stocks were up in Tuesday trading, with the NIKKEI 225 (INDEXNIKKEI:NI225) hitting a new seven-week high, as the yen declined to the 100 mark against the USD. The SSE Composite Index (SHA:000001) (Shanghai Composite Index) rebounded from lows made earlier in the session to edge 0.3 percent higher. The S&P/ASX 200 (INDEXASX:XJO) index was largely unchanged as the Reserve Bank of Australia released the latest policy meeting minutes.
Stocks in News:
Goldman Sachs Group Inc (NYSE:GS)
Goldman Sachs Group Inc (NYSE:GS) reported better than expected second quarter results as amid gains in revenue from fixed income, currency and commodity trading. Earnings for the second quarter stood at $3.70 per share, well above estimates of $2.82 per share. Revenue also beat consensus, with fixed income, currency and commodities trading revenue jumping 12 percent to $2.46 billion. Shares are up in recent trading.
Johnson & Johnson (NYSE:JNJ)
The medical device maker reported second quarter earnings excluding items of $1.48 per share, nine cents above the consensus estimate, with revenues also topping expectations. In addition, J&J raised its full-year earnings outlook to between $5.40 and $5.47 per share, from the previous range of $5.35 to $5.45 per share. Shares were up close to a percent in pre-open session.
The Coca-Cola Company (NYSE:KO)
The soft drink giant posted second quarter earnings excluding certain items of earned 63 cents per share, matching expectations. Revenue fell 3% from a year earlier to $12.75 billion, below estimates of $12.95 billion. Chairman and Chief Executive Muhtar Kent said the results were below expectations, and were largely due to the tough global macroeconomic environment and unusually poor weather conditions during the quarter.
Cintas Corporation (NASDAQ:CTAS)
The uniforms maker reported fiscal fourth quarter profit of 69 cents per share, one cent below the average analysts’ estimate. Revenue came in $1.13 billion, in line with consensus. In addition, the company provided full year forecast that fell short of analyst expectations. Cintas shares fell 4 percent in recent pre-market trading.
The J.M. Smucker Company (NYSE:SJM)
The food producer raised its quarterly dividend by 12 percent to 58 cents per share from 40.52 cents per share. The dividend will be payable on September 3 to stockholders of record on August 16. The increased payout will cost the company an additional $25 million a year. Shares rose following the announcement.
Heidrick & Struggles International, Inc. (NASDAQ:HSII)
The executive search firm said CEO Kevin Kelly has stepped down from his post and resigned from the board of directors. Company executive Jory Marino will serve as interim CEO. Separately, the company said that it expects second-quarter net revenue to be at the upper end of its previous range of $110 million and $120 million. Shares plunged in early-hours trading.
Economic Calendar for Tuesday, July 16, 2013:
07:45 A.M. ET: ICSC-Goldman Store Sales
08:30 A.M. ET: Consumer Price Index (YoY) (June)
08:30 A.M. ET: Consumer Price Index Ex Food & Energy (YoY) (June)
08:55 A.M. ET: Redbook index (YoY) (July 7)
08:55 A.M. ET: Redbook index (MoM) (July 7)
09:00 A.M. ET: Net Long-Term TIC Flows (May)
09:15 A.M. ET: Industrial Production (MoM) (June)
09:15 A.M. ET: Capacity Utilization (June)
10:00 A.M. ET: NAHB Housing Market Index (July)
11:30 A.M. ET: 4-Week Bill Auction