Morning Market News Update
Stocks that are expected to trade actively in U.S. markets on Thursday include: JPMorgan Chase & Co. (NYSE:JPM), McDonald’s Corporation (NYSE:MCD), Tesla Motors Inc (NASDAQ:TSLA), Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR), Toyota Motor Corporation (ADR) (NYSE:TM) (TYO:7203), Groupon Inc (NASDAQ:GRPN), Target Corporation (NYSE:TGT), Mondelez International Inc (NASDAQ:MDLZ), Costco Wholesale Corporation (NASDAQ:COST), Jack in the Box Inc. (NASDAQ:JACK), SMART Technologies Inc (NASDAQ:SMT).
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: 15503.00 (0.40%), S&P 500 Futures: 1694.80 (0.39%), NASDAQ Futures: 3128.75 (0.41 %)
Europe: CAC: 4058.83 (0.50%), DAX: 8320.74 (0.72%), FTSE: 6529.83 (0.29%)
Asia-Pacific: Australia: 5064.80 (1.07%), China: 2044.90 (-0.09%), Hong Kong: 21655.88 (0.31%), Japan: 13605.56 (-1.61%).
Metals: Gold: 1293.20 (0.61%), Silver: 19.97 (2.37%), Copper: 3.27 (3.17%)
Energy: Crude Oil: 103.81 (-0.54%), Natural Gas: 3.24 (-0.06%)
Commodities: Corn: 4.61 (0.76%), Soya Bean: 11.76 (0.92%), Wheat: 6.57 (0.15%)
Currency: EUR/USD: 1.3364 (0.21%), GBP/USD: 1.5512 (0.15%), USD/JPY: 96.1300 (-0.21%)
10-year US Treasury: 2.586% (-0.024)
Market and Economic News Update:
U.S. stock-index futures gain: U.S. stock-index futures are pointing to a higher open on Thursday, signaling a likely halt to the three-day losing streak. The dollar traded lower against most other currencies, while metals prices are higher across the board. On the economic front, weekly jobless claims increased 5,000 to a seasonally adjusted 333,000 last week, the Labor Department said today. Economists had expected first-time applications to rise to 336,000. Up ahead in the day, traders will shift their focus to the $16 billion auction of 30-year bonds with the results available shortly after 1 P.M. ET.
European markets rise: European markets are up in trade, mirroring gains in Asia, buoyed by upbeat Chinese trade data and some better than expected earnings reports. In economic news, trade data was also in focus in Germany, where trade balance rose to 15.7 billion euros, from 14.6 billion euros in the preceding month. The CAC 40 (INDEXEURO:PX1) added 0.5 percent to 4058.83, while the DAX (INDEXDB:DAX) gained 0.7 percent to 8320.74. The FTSE 100 (INDEXFTSE:UKX) edged 0.3 percent higher to 6529.83 points. The euro zone blue-chip ESTX 50 PR.EUR (INDEXSTOXX:SX5E) (Euro Stoxx 50) was up 0.7 percent in recent trading.
Asian stocks mixed; Nikkei down more 1.6 percent: Asian markets struggled for direction despite upbeat Chinese trade figures. The NIKKEI 225 (INDEXNIKKEI:NI225) fell to a one-month low in volatile trade amid a strengthening yen. The SSE Composite Index (SHA:000001) (Shanghai Composite Index) closed flat after data showed Chinese exports and imports climbed more than forecast in July. The S&P/ASX 200 (INDEXASX:XJO) index extended early morning gains to end 1.1 percent higher following strong trade data from China, Australia’s largest export partner.
Stocks in News:
JPMorgan Chase & Co. (NYSE:JPM)
JPMorgan Chase & Co. (NYSE:JPM) said it is facing criminal and civil investigations by the US Department of Justice over offerings of mortgage-backed securities in the run-up to the financial crisis. The nation’s largest bank disclosed in a quarterly filing that it is responding to investigations being conducted by the civil and criminal branches of the U.S. Attorney’s Office for the Eastern District of California’s over securitization of mortgages by the firm and its subsidiaries from 2005 through 2007. Shares fell in recent trading.
McDonald’s Corporation (NYSE:MCD)
The fast-food chain’s July same-store sales climbed 0.7 percent, edging past expectations for a gain of 0.3 percent, as better-than-expected U.S. sales helped offset weakness in Europe. Comparable sales rose 1.6 percent in the U.S., but fell 1.9 percent in Europe amid weakness in Germany and France. Shares in McDonald’s were up more than a percent in pre-market trading.
Tesla Motors Inc (NASDAQ:TSLA)
The electric car maker posted a lower net loss for the second quarter amid a surge in Model S sedan deliveries. Operation profit came in at 5 cents a share, edging past estimates for a loss of 17 cents a share. The company also handed in sales of $405 million, topping Street expectations for $383 million. Model S deliveries for the period totaled 5150, topping the company’s target of 4500 units. Shares soared in pre-market trading. https://www.valuewalk.com/2013/08/tesla-motors-inc-tsla-stock-surges-on-earnings/
Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR)
Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR) reported better than expected quarterly earnings, helped by lower coffee bean costs and strong sales of its K-cup coffee pods. Excluding one-time items, third quarter earnings were 82 cents a share, topping Street estimates by a nickel a share. Meanwhile, the specialty coffee company posted sales of $967 million, missing expectations for $981 million. Shares tumbled in the pre-open session. https://www.valuewalk.com/2013/08/green-mountain-coffee-roasters-inc-gmcr-earnings/
Toyota Motor Corporation (ADR) (NYSE:TM) (TYO:7203)
The Japanese automaker is voluntarily recalling about 342,000 Tacoma pickup trucks built from 2004 to 2011 to fix a flaw in the seat belts. Toyota said screws that attach the seat belt pre-tensioner to the seat belt retractor could come loose in the front seat belts on some of those models, causing the belts to malfunction.
Groupon Inc (NASDAQ:GRPN)
The daily deals company posted second quarter earnings of 2 cents a share, in line with estimates, on revenue of $609 million that exceeded expectations for $606 million. Additionally, the company provided current-quarter earnings outlook that disappointed Wall Street, but revenue guidance was in the higher end of projections. The company’s board also named co-founder Eric Lefkofsky as the new chief executive, and authorized a $300 million share buyback program. https://www.valuewalk.com/2013/08/groupon-inc-grpn-revenue-up-7-stock-jumps-18/
Target Corporation (NYSE:TGT)
Analysts at JPMorgan downgraded the retailer to “neutral” from “overweight,” with a target price of $74. Citing reduced visibility and valuation, JPMorgan cut Target Corp’s 2013 earnings per share estimate to $4.35, and its 2014 forecast to $5.50 from $5.58. Shares were largely unchanged in recent trading.
Mondelez International Inc (NASDAQ:MDLZ)
Mondelez International Inc (NASDAQ:MDLZ) posted second quarter earnings excluding one-time items of 37 cents a share, 3 cents above consensus. Sales were in line with most estimates at $8.6 billion. The food and beverage conglomerate also increased its stock repurchase program to $6 billion, and raised its quarterly dividend from 13 cents a share to 14 cents a share. Shares rallied in recent pre-market trading.
Costco Wholesale Corporation (NASDAQ:COST)
The membership-only wholesale retailer reported July same-store sales that missed expectations, hurt by a stronger dollar. Sales at stores open at least a year rose 4 percent for the four weeks ended August 4. Analysts had expected same-store sales to rise 5.1 percent for the period. Net sales for July increased 7 percent to $7.87 billion. Costco shares are down in early trade.
Jack in the Box Inc. (NASDAQ:JACK)
The fast-food restaurant chain reported third quarter earnings of 41 cents a share on sales of $350 million, compared to Street expectations for earnings of 38 cents a share on revenue of $362 million. In addition, the company named current president and COO Leonard Comma to replace CEO Linda Lang, who will retire at the end of the year. Shares slid in early-hours trading.
SMART Technologies Inc (NASDAQ:SMT)
Shares in SMART Technologies Inc (NASDAQ:SMT) soared in pre-market trading after the digital whiteboards maker reported a big jump in fiscal first-quarter profit. For the quarter ended June 30, the company posted a profit of $9.2 million, or seven cents a share, up from $1.5 million, or a penny a share, in the year-ago period. Excluding certain items, per-share earnings rose to 13 cents, from 10 cents, a year earlier. Revenue dropped 11 percent to $155.9 million. Analysts were expecting per-share earnings of 2 cents a share on sales of $123.6 million.
Economic Calendar for Thursday, August 08, 2013:
08:30 A.M. ET: Initial Jobless Claims (August 3)
08:30 A.M. ET: Continuing Jobless Claims (July 27)
10:30 A.M. ET: EIA Natural Gas Storage change (August 2)
01:00 P.M. ET: 30-Year Bond Auction
04:30 P.M. ET: Fed Balance Sheet
04:30 P.M. ET: Money Supply