Morning Market Update
Stocks that are expected to trade actively in U.S. markets on Friday include: Dell Inc. (NASDAQ:DELL), American International Group Inc (NYSE:AIG), Apple Inc. (NASDAQ:AAPL), LinkedIn Corp (NYSE:LNKD), Kraft Foods Group Inc (NASDAQ:KRFT), Activision Blizzard, Inc. (NASDAQ:ATVI), Duke Energy Corp (NYSE:DUK), Viacom, Inc. (NASDAQ:VIAB), Alpha Natural Resources, Inc. (NYSE:ANR), Weight Watchers International, Inc. (NYSE:WTW)
US: Dow Futures: 15533.00 (-0.12%), S&P 500 Futures: 1697.00 (-0.19%), NASDAQ Futures: 3119.00 (0.20%)
Europe: CAC: 4032.91 (-0.24%), DAX: 8386.13 (-0.29%), FTSE: 6628.58 (-0.81%)
Asia-Pacific: Australia: 5116.80 (1.09%), China: 2029.42 (0.02%), Hong Kong: 22190.97 (0.46%), Japan: 14466.16 (3.18%).
Metals: Gold: 1307.10 (-0.31%), Silver: 19.92 (1.53%), Copper: 3.18 (0.47%)
Energy: Crude Oil: 107.30 (-0.55%), Natural Gas: 3.39 (0.12%)
Commodities: Corn: 4.66 (-2.40%), Soya Bean: 11.98 (-0.91%), Wheat: 6.59 (-0.94%)
Currency: EUR/USD: 1.3264 (0.43%), GBP/USD: 1.5242 (0.81%), USD/JPY: 99.0900 (-0.45%)
10-year US Treasury: 2.624% (-0.083)
Market and Economic News Update:
U.S. stock-index futures slip: U.S. stock-index futures are pointing to a lower open on Friday after the U.S. economy created fewer than expected jobs in July. The economy created 162,000 non-farm payroll jobs in July, and the unemployment rate fell to 7.4 percent. Analysts were expecting to see a gain of 184,000 jobs last month. In other economic news, U.S. consumer spending gained 0.5 percent in June, and May’s increase was revised down to 0.2 percent from the 0.3 percent previously reported. Up ahead, June factory orders data is scheduled to be released at 10 a.m. ET, with analysts expecting a 2.3 percent rise following May’s 2.1 percent increase.
European markets decline: European markets fell in trade after data showed U.S. non-farm payrolls rose less than expected. On the economic front, the U.K. construction PMI, jumped to 57.0 in July, from 51.0 the previous month, blowing past expectations for a reading of 51.5. The CAC 40 (INDEXEURO:PX1) lost 0.3 percent to 4032.91, while the DAX (INDEXDB:DAX) slid 0.3 percent to 8386.13. The FTSE 100 (INDEXFTSE:UKX) edged 0.8 percent lower to 6628.58 points. The euro zone blue-chip ESTX 50 PR.EUR (INDEXSTOXX:SX5E) (Euro Stoxx 50) was down 0.4 percent in recent trading.
Asian stocks rise; Nikkei up more than 3%: Asian markets gained in trade following strong overnight cues from the Wall Street. The SSE Composite Index (SHA:000001) (Shanghai Composite Index) gave up gains made earlier in the session to end flat. The NIKKEI 225 (INDEXNIKKEI:NI225) rallied 3.3 percent amid investor expectation that the dollar will trade higher in the event of a strong U.S. jobs report. The S&P/ASX 200 (INDEXASX:XJO) index managed to stay above 5100 despite the Australian government cutting its economic growth and revenue forecasts.
Stocks in News:
Dell Inc. (NASDAQ:DELL)
Dell Inc. (NASDAQ:DELL)’s special committee has reached a deal with the buyout group led by founder Michael Dell for an improved offer of $13.75 per share plus a special dividend of 13 cents for shareholders, according to CNBC’s David Faber. Shares jumped 5 percent in pre-market trades. https://www.valuewalk.com/2013/08/dell-committee-strikes-a-deal/
American International Group Inc (NYSE:AIG)
The insurance giant reported earnings of $1.12 a share, excluding one-time items, on sales of $8.35 billion, compared to Street expectations for 85 cents a share on revenue of $8.62 billion. The company resumed its dividend of 10 cents a share and unveiled a share buyback program of up to $1 billion. Separately, Reuters reported that AIG is still in talks a Chinese consortium about selling its aircraft leasing unit, International Lease Finance Corp, after missing a July 31 deadline to close the deal. https://www.valuewalk.com/2013/08/aig-reports-strong-profit/
Apple Inc. (NASDAQ:AAPL)
The International Trade Commission has put-off a decision on whether Samsung devices violate Apple patents. The U.S. trade agency said it will announce its decision by Friday, August 9. The ruling delay comes as President Barack Obama weighs whether to veto a separate ruling that found Apple to infringe on Samsung’s technology. Shares of Apple Inc. (NASDAQ:AAPL) are up in recent trading.
LinkedIn Corp (NYSE:LNKD)
LinkedIn Corp (NYSE:LNKD) posted better than expected quarterly results, helped by strong membership gains. Excluding one-time items, second quarter earnings came in at 38 cents a share, on revenue of $364 million, beating estimates of 31 cents a share on sales of $354 million. However, the professional networking service handed current-quarter and full-year revenue outlook that disappointed analysts. Shares are up in pre-market trading.
Kraft Foods Group Inc (NASDAQ:KRFT)
Kraft Foods Group Inc (NASDAQ:KRFT) posted better than expected second quarter earnings, largely due to a $604 million gain related to employee pensions. Excluding items, the company said earnings per share for the quarter were 76 cents, 10 cents above the average analysts’ estimate. Revenue fell to $4.74 billion from $4.79 billion in the second quarter of last year, compared to expectations for $4.81 billion. In addition, Kraft raised its full-year earnings outlook, sending shares slightly higher in recent trading.
Activision Blizzard, Inc. (NASDAQ:ATVI)
The video game publisher reported second quarter earnings excluding one-time items of 8 cents a share, on revenue of $608 million, exceeding Wall Street expectations for 7 cents a share on sales of $605 million. In addition, the company provided current-quarter outlook that largely matched estimates, while full-year guidance was lower than expected. Shares edged lower in early-hours trading.
Duke Energy Corp (NYSE:DUK)
Duke Energy Corp (NYSE:DUK) said it will not proceed with the $24 billion Levy nuclear reactor project in Florida because of licensing delays and uncertainties about cost recovery. Duke will record a $360 million pretax cost in the second quarter as part a settlement with regulatory staff over how the utility will recover as much as $2.5 billion in costs associated with the shuttered reactor.
Viacom, Inc. (NASDAQ:VIAB)
The media conglomerate reported fiscal third quarter profit of $643 million, or $1.33 a share, compared with $534 million, or $1.02, in the year-ago period. Adjusted for one-time items, per-share earnings came in at $1.29. Revenue increased 14 percent to $3.69 billion. Analysts had forecast per-share earnings of $1.30 on revenue of $3.58 billion. Additionally, the company doubled its share-repurchase program to $20 billion.
Alpha Natural Resources, Inc. (NYSE:ANR)
Alpha Natural Resources, Inc. (NYSE:ANR)’s second-quarter loss narrowed to $185.7 million, or 84 cents a share, from $2.23 billion, or $10.14 a share, in the year-ago period. Adjusted loss stood at $129.2 million, or 59 cents a share, compared to a loss of $72.3 million, or 33 cents per share, from a year earlier. Revenue dropped to $1.12 billion, from $1.57 billion, in the same period last year. Analysts had projected a loss of 59 cents per share on revenue of $1.25 billion. Shares were down 4 percent in pre-market trading.
Weight Watchers International, Inc. (NYSE:WTW)
The weight-loss company reported second quarter earnings excluding one-time items of $1.15 a share, on sales of $465 million, edging past estimates of $1.11 a share on revenue of $459 million. But shares tumbled in recent trade after the company lowered its full-year earnings outlook, and announced that CEO David Kirchhoff has stepped-down from his post.
Economic Calendar for Friday, August 02, 2013:
08:30 A.M. ET: Non-farm Payrolls (July)
08:30 A.M. ET: Unemployment Rate (July)
08:30 A.M. ET: Personal Income (MoM) (June)
08:30 A.M. ET: Personal Spending (June)
10:00 A.M. ET: Factory Orders (MoM) (June)
12:15 P.M. ET: St Louis Federal Reserve President James Bullard speaks.