Morning Market Update
Stocks that are expected to trade actively in U.S. markets on Tuesday include: Intuitive Surgical, Inc. (NASDAQ:ISRG), AT&T Inc. (NYSE:T), DIRECTV (NASDAQ:DTV), Tesla Motors Inc (NASDAQ:TSLA), The Kroger Co. (NYSE:KR), Harris Teeter Supermarkets Inc (NYSE:HTSI), WD-40 Company (NASDAQ:WDFC), Barnes & Noble, Inc. (NYSE:BKS), Sirius XM Radio Inc (NASDAQ:SIRI), Wolverine World Wide, Inc. (NYSE:WWW), Equifax Inc. (NYSE:EFX), Raytheon Company (NYSE:RTN)
Qualivian Investment Partners Up 30% YTD; Long ORLY Thesis
Qualivian Investment Partners commentary for the second quarter ended July 30, 2020. Q2 2020 hedge fund letters, conferences and more “Short-term investors will accept a 20% gain because they didn’t spend the time to develop the conviction and foresight to see the next 500%.” - Ian Cassell Executive Summary Readers of investment letters fall into Read More
US: Dow Futures: 15190.00 (0.20%), S&P 500 Futures: 1641.70 (0.38%), NASDAQ Futures: 2968.50 (0.33%)
Europe: CAC: 3846.00 (0.58%), DAX: 8050.07 (1.01%), FTSE: 6502.85 (0.81%)
Asia-Pacific: Australia: 4881.70 (1.50%), China: 1965.45 (0.37%), Hong Kong: 20683.01 (0.49%), Japan: 14472.90 (2.51%).
Metals: Gold: 1249.30 (1.17%), Silver: 19.16 (0.67%), Copper: 3.05 (-1.58%)
Energy: Crude Oil: 102.74 (-0.39%), Natural Gas: 3.69 (-1.26%)
Commodities: Corn: 5.09 (2.35%), Soya Bean: 12.70 (1.54%), Wheat: 6.70 (0.38%)
Currency: EUR/USD: 1.2857 (-0.10%), GBP/USD: 1.4868 (-0.55%), USD/JPY: 101.1600 (0.19%)
10-year US Treasury: 2.631% (-0.005)
Market and Economic News Update:
U.S. stock-index futures rise: U.S. stock-index futures are pointing to a higher open on Tuesday, mirroring gains in Europe and Asia. In economic news, small business optimism fell from its one-year high in June amid growing concerns about the course of the economic recovery. The NFIB index declined 0.9 points last month to 93.5. In other news, the Treasury will auction $32 billion in 3-year notes, and the results will be available after 1 P.M. ET.
European markets gain: European stocks gained in trade for a second consecutive session after better-than-expected results from Alcoa Inc. raised investor optimism about the second quarter earnings season. On the economic front, U.K. industrial output was flat for May, while manufacturing output dropped 0.8 percent on a month-over-month basis. The CAC 40 (INDEXEURO:PX1) added 0.6 percent to 3846.00, while the DAX (INDEXDB:DAX) jumped 1 percent to 8050.07. The FTSE 100 (INDEXFTSE:UKX) rose 0.8 percent to 6502.85 points. The euro zone blue-chip ESTX 50 PR.EUR (INDEXSTOXX:SX5E) (Euro Stoxx 50) was up 0.5 percent in recent trading.
Asian markets end higher; Nikkei rallies 2.5%: Asian stocks closed higher on Tuesday following a higher finish on Wall Street. The NIKKEI 225 (INDEXNIKKEI:NI225) jumped to its highest finish in six weeks as the dollar breached the 101-yen mark. The SSE Composite Index (SHA:000001) (Shanghai Composite Index) closed higher in a choppy session of trade, led by gains in financial stocks. The S&P/ASX 200 (INDEXASX:XJO) index hit a one-month high amid a rally in banks.
Stocks in News:
Intuitive Surgical, Inc. (NASDAQ:ISRG)
Shares of the medical-equipment maker plunged in pre-open trading after the company reported weaker than expected preliminary second-quarter net income, as demand slowed for its robotic surgical systems. Intuitive Surgical expects net income of $160 million and revenue of $575 million, missing analysts’ estimates of $178 million and revenue of $630 million. Intuitive Surgical is scheduled to post full results on July 18.
AT&T Inc. (NYSE:T), DIRECTV (NASDAQ:DTV)
Online video service Hulu LLC has attracted three bids of over $1 billion from suitors including satellite television company DIRECTV (NASDAQ:DTV) and a partnership led by telecom giant AT&T Inc. (NYSE:T), the Wall Street Journal reported, citing people familiar with the matter. According to the report, a deal could be announced in a week or two after the deadline for bids ends this Friday.
Tesla Motors Inc (NASDAQ:TSLA)
Tesla Motors Inc (NASDAQ:TSLA) will be listed in the Nasdaq 100 Index prior to the start of trading on Monday, July 15. The electric car maker will replace Oracle Corporation (NASDAQ:ORCL), which is moving its stock listing to the New York Stock Exchange. Shares of Tesla closed at $121.61 on Monday and were up 2.5 percent in pre-market trading. https://www.valuewalk.com/2013/07/tesla-motors-inc-tsla-oracle-nasdaq-100/
The Kroger Co. (NYSE:KR), Harris Teeter Supermarkets Inc (NYSE:HTSI)
Grocery chain The Kroger Co. (NYSE:KR) has agreed to purchase Harris Teeter Supermarkets Inc (NYSE:HTSI) for $2.5 billion, including debt, to increase its presence in the south east and Mid-Atlantic States. Kroger will pay $49.38 for each Harris Teeter share, a premium of 2 percent to its closing price on Monday. Shares of Harris Teeter and Kroger were both up in pre-market trade.
WD-40 Company (NASDAQ:WDFC)
WD-40 Company (NASDAQ:WDFC) posted better than expected third quarter results amid strong sales of its multi-purpose products. Earnings came in at 66 cents a share, easily beating expectations for 56 cents a share. Revenue rose 7 percent to $93.1 million, also topping estimates of $89 million. In addition, the company raised its full-year earnings outlook to between $2.40 and $2.48 a share, from its previous guidance of $2.32 to $2.42 a share, sending shares higher in pre-market trading.
Barnes & Noble, Inc. (NYSE:BKS)
William Lynch has resigned as chief executive officer of the bookstore chain after three years in the job. Barnes & Noble, Inc. (NYSE:BKS) did not name a successor, and said it is now reviewing its overall strategy. His resignation comes weeks after a devastating earnings report that saw sales in the Nook business fall 34 percent from a year earlier. https://www.valuewalk.com/2013/07/barnes-noble-ceo-resigns/
Sirius XM Radio Inc (NASDAQ:SIRI)
The satellite radio operator said it added 715,000 net new subscribers in the second quarter, raising its full year outlook for subscriber additions by 100,000 to 1.5 million. Sirius has been benefiting from strong auto sales which helped drive the 15 percent growth in net additions, a record since John Malone’s Liberty Media Corp (NASDAQ:LMCA) took control of the company. Shares closed Monday at $3.48 and were up close to 4 percent in recent trading.
Wolverine World Wide, Inc. (NYSE:WWW)
Wolverine World Wide, Inc. (NYSE:WWW) posted second quarter earnings excluding one-time items of 46 cents a share, easily beating the average analysts’ estimate of 34 cents a share. Revenue jumped 88 percent to $587.8 million, but fell short of expectations for $591.03 million. In addition, the shoe company raised its view for adjusted earnings per share, sending shares higher in early trade.
Equifax Inc. (NYSE:EFX)
The consumer credit reporting company has acquired identity protection firm, TrustedID, for an undisclosed sum. According to AllThingsD’s Kara Swisher, Equifax paid $30 million for the startup. Post the deal, TrustedID will become part of Equifax’s Personal Solutions division. Shares of Equifax Inc. (NYSE:EFX) closed Monday at $59.66, and were largely unchanged in the pre-open session.
Raytheon Company (NYSE:RTN)
Raytheon Company (NYSE:RTN) secured a $279 million contract to develop a new electronic jammer for the U.S. Navy. According to analysts, the 22-month contract, which runs through May 2015, could eventually be worth billions of dollars. Northrop Grumman Corporation (NYSE:NOC), Exelis Inc (NYSE:XLS) and BAE Systems plc (LON:BA) were the other bidders for the contract.
Economic Calendar for Tuesday, July 09, 2013:
07:30 A.M. ET: NFIB Business Optimism Index (June)
07:45 A.M. ET: ICSC-Goldman Store Sales
08:55 A.M. ET: Redbook Index (YoY) (June 30)
08:55 A.M. ET: Redbook Index (MoM) (June 30)
11:30 A.M. ET: 4-Week Bill Auction
01:00 P.M. ET: 3-Year Note Auction