Morning Market Update
Stocks that are expected to trade actively in U.S. markets on Monday include: Berkshire Hathaway Inc. (NYSE:BRK.A) (NYSE:BRK.B), Apple Inc. (NASDAQ:AAPL), Tyson Foods, Inc. (NYSE:TSN), General Motors Company (NYSE:GM), Time Warner Cable Inc (NYSE:TWC), CBS Corporation (NYSE:CBS), IAC/InterActiveCorp (NASDAQ:IACI).
Market Levels:
US: Dow Futures: 15572.00 (-0.12%), S&P 500 Futures: 1701.70 (-0.13%), NASDAQ Futures: 3136.50 (0.02%)
Europe: CAC: 4051.16 (0.14%), DAX: 8396.22 (-0.13%), FTSE: 6623.65 (-0.37%)
Asia-Pacific: Australia: 5111.30 (-0.11%), China: 2050.48 (1.03%), Hong Kong: 22222.01 (0.14%), Japan: 14258.04 (-1.46%).
Metals: Gold: 1304.40 (-0.47%), Silver: 19.66 (-1.24%), Copper: 3.15 (-0.65%)
Energy: Crude Oil: 105.80 (-1.07%), Natural Gas: 3.33 (-0.39%)
Commodities: Corn: 4.58 (-0.86%), Soya Bean: 11.73 (-0.88%), Wheat: 6.57 (0.38%)
Currency: EUR/USD: 1.3249 (-0.20%), GBP/USD: 1.5335 (0.27%), USD/JPY: 98.5600 (-0.38%)
10-year US Treasury: 2.627% (0.029)
Market and Economic News Update:
U.S. stock-index futures largely unchanged: U.S. stock-index futures are pointing to a flat open on Monday as investors await the ISM non-manufacturing report, scheduled for release at 10 A.M. ET. Economists expect a rise to 53.1 percent in July from 52.2 percent in June. Also, Dallas Fed President will speak on the economy at 11:45 A.M. ET.
European markets mostly lower: European markets pared gains after banking giant HSBC Holdings plc (LON:HSBA) posted worse than expected quarterly earnings. On the economic front, euro zone composite PMI stood at 50.5 in July, compared to June’s 48.7. Also, the U.K. composite PMI rose to a six and a half year high of 59.5 in July against 56.1 in June. The CAC 40 (INDEXEURO:PX1) added 0.1 percent to 4051.16, while the DAX (INDEXDB:DAX) lost 0.1 percent to 8396.22. The FTSE 100 (INDEXFTSE:UKX) edged 0.4 percent lower to 6623.65 points. The euro zone blue-chip ESTX 50 PR.EUR (INDEXSTOXX:SX5E) (Euro Stoxx 50) was down 0.1 percent in recent trading.
Asian stocks mixed; Nikkei down 1.5%: Asian markets struggled for direction on Monday following a tepid U.S. jobs report over the weekend. The SSE Composite Index (SHA:000001) (Shanghai Composite Index) bucked the trend to hit a new two-week high, following better than expected Chinese services sector data. The NIKKEI 225 (INDEXNIKKEI:NI225) slipped 1.5 percent as a stronger yen more than offset some upbeat earnings reports. The S&P/ASX 200 (INDEXASX:XJO) index closed flat ahead of Tuesday’s Reserve Bank of Australia meeting.
Stocks in News:
Berkshire Hathaway Inc. (NYSE:BRK.A) (NYSE:BRK.B)
Berkshire Hathaway Inc. (NYSE:BRK.A) (NYSE:BRK.B) reported a 46 percent jump in second-quarter earnings, sending Class B shares of the company higher in recent trading. Operating profit rose to $2,384 a share from $2,252 a share in the year-ago period. Analysts had projected per-share operating earnings of $2,170. Revenue climbed 16 percent from a year earlier to $44.69 billion, amid growth in all its major subsidiaries. Book value per share, Warren Buffett’s preferred measure of growth, increased 2 percent from the end of the previous quarter. https://www.valuewalk.com/2013/08/berkshire-hathaway-inc-q2-earnings/
Apple Inc. (NASDAQ:AAPL)
The Obama administration has overturned a U.S. trade body’s ban on the sale of some Apple Inc. (NASDAQ:AAPL) iPhones and iPads, dealing a setback to South Korean rival Samsung. The International Trade Commission had ordered the ban on some older-model iPhones and iPads in June after finding the products infringed a Samsung Electronics patent. Shares of Apple Inc. gained in pre-market trading.
Tyson Foods, Inc. (NYSE:TSN)
Tyson Foods, Inc. (NYSE:TSN)’s third-quarter profit rose to $249 million, or 68 cents a share, from $76 million, or 21 cents a share, in the same period last year. Excluding certain items, earnings came in at 68 cents a share. Revenue increased to $8.7 billion from $8.3 billion a year earlier. Analysts were expecting earnings of $60 cents a share on sales of $8.66 billion. Tyson expects sales of $34.5 billion in fiscal year 2013, and $36 billion in fiscal year 2014. Shares rallied in pre-market trading.
General Motors Company (NYSE:GM)
General Motors Company (NYSE:GM) said sales of vehicles in China increased 11 percent in July from the same period last year, helped by strong demand for Buick vehicles. GM sold a total of 221,580 units last month, with Buick deliveries jumping 26 percent to 66,208 units. China is the world’s largest auto market in terms of sales, and GM is the largest foreign automaker in the country.
Time Warner Cable Inc (NYSE:TWC), CBS Corporation (NYSE:CBS)
Time Warner Cable Inc (NYSE:TWC) has dropped CBS Corporation (NYSE:CBS) owned-and-operated stations from its service in some major markets late Friday after the two companies failed to reach a deal on retransmission fees. Time Warner Cable dropped CBS programs in New York City, Los Angeles, Dallas and several other markets after a contract extension between the companies expired Friday at 5 P.M. Shares of Time Warner Cable closed Friday at $117.10, and were inactive in pre-open session. CBS shares fell 0.4 percent in Monday early hours trading.
IAC/InterActiveCorp (NASDAQ:IACI)
IBT Media will buy Newsweek from IAC/InterActiveCorp (NASDAQ:IACI) for an undisclosed sum, with a deal expected to close in the coming days. Once a leading news magazine, Newsweek suffered plummeting printed-copy sales, and shifted to online-only in January under IAC. IAC acquired Newsweek in 2010 and combined its operations with the Daily Beast news website.
Economic Calendar for Monday, August 05, 2013:
08:30 A.M. ET: Gallup’s US Consumer Spending (July)
10:00 A.M. ET: ISM Non-Manufacturing PMI (July)
11:30 A.M. ET: 3-Month Bill Auction
11:30 A.M. ET: 6-Month Bill Auction
11:45 A.M. ET: Dallas Federal Reserve Bank President Richard Fisher speaks.
