Morning Market Update
Stocks that are expected to trade actively in U.S. markets on Tuesday include: Verizon Communications Inc. (NYSE:VZ), Vodafone Group Plc (ADR) (NASDAQ:VOD), Jarden Corp (NYSE:JAH), Ford Motor Company (NYSE:F), J.C. Penney Company, Inc. (NYSE:JCP), Bank of America Corp (NYSE:BAC).
US: Dow Futures: 14893.00 (0.66%), S&P 500 Futures: 1646.25 (0.92%), NASDAQ Futures: 3097.00 (0.76%)
Europe: CAC: 3999.93 (-0.15%), DAX: 8222.27 (-0.26%), FTSE: 6499.44 (-0.10%)
Asia-Pacific: Australia: 5196.60 (0.16%), China: 2123.11 (1.16%), Hong Kong: 22394.58 (0.98%), Japan: 13978.48 (2.90%).
Metals: Gold: 1393.90 (-0.16%), Silver: 24.21 (2.96%), Copper: 3.29 (1.76%)
Energy: Crude Oil: 107.35 (-0.28%), Natural Gas: 3.66 (2.09%)
Commodities: Corn: 4.88 (1.30%), Soya Bean: 14.04 (3.43%), Wheat: 6.60 (0.92%)
Currency: EUR/USD: 1.3171 (-0.16%), GBP/USD: 1.5547 (0.02%), USD/JPY: 99.5700 (0.24%)
10-year US Treasury: 2.839% (0.055)
Welcome to our latest issue of ValueWalk’s hedge fund update. Below subscribers can find an excerpt in text and the full issue in PDF format. Please send us your feedback! Featuring Point72 Asset Management losing about 10% in January, Millennium Management on a hiring spree, and hedge fund industry's assets under management swell to nearly Read More
Market and Economic News Update:
U.S. stock-index futures rise: U.S. stock-index futures are pointing to a higher open on Tuesday as investor concerns over an imminent military strike against Syria faded. President Barack Obama failed to persuade Congress to approve a military strike against Syria on Sunday, and lawmakers will now debate a strike when they return from the summer recess on September 9. U.S. economic data in the spotlight on Tuesday include the ISM manufacturing reading, as well as July construction spending, due for release at 10 a.m ET. Economists expect the ISM index to ease to 54.1 percent in August, while construction spending is expected to rise 0.3 percent in July.
European markets fall: European markets are swinging between small gains and losses, after a strong rally in the prior trading session. On the economic front, Spanish jobless figures for August held steady at 4.7 million, according to data released on Tuesday. The FTSE 100 (INDEXFTSE:UKX) edged 0.1 percent lower to 6499.44 points. The CAC 40 (INDEXEURO:PX1) lost 0.2 percent to 3999.93 points, while the DAX (INDEXDB:DAX) shed 0.3 percent to 8222.27. The euro zone blue-chip ESTX 50 PR.EUR (INDEXSTOXX:SX5E) (Euro Stoxx 50) was down 0.2 percent in recent trading.
Asian stocks end higher; Nikkei rallies 3%: Asian markets gained in trade following better-than-expected manufacturing data from Europe. The NIKKEI 225 (INDEXNIKKEI:NI225) crossed the 13,000 mark as the yen weakened to a one-month low. The SSE Composite Index (SHA:000001) (Shanghai Composite Index) jumped to a two and a half week high after Markit’s euro-zone PMI rose to 51.4 in August from 50.3 in July. The resource-heavy S&P/ASX 200 (INDEXASX:XJO) index reversed early morning losses to end flat after the Reserve Bank of Australia left interest rates on hold at 2.5 percent.
Stocks in News:
Microsoft Corporation (NASDAQ:MSFT), Nokia Corporation (ADR) (NYSE:NOK)
Microsoft Corporation (NASDAQ:MSFT) will acquire Nokia Corporation (ADR) (NYSE:NOK)’s handset business for $7.2 billion. The deal is expected to close in the first quarter of 2014 and is subject to regulatory approvals. Nokia CEO Stephen Elop would join Microsoft post the acquisition, and is now seen by many as one of the favorites to take over as Microsoft chief when Steve Ballmer steps down. https://www.valuewalk.com/2013/09/nokia-corporation-adr-nok-shares-jump-on-microsoft-takeover/
Verizon Communications Inc. (NYSE:VZ), Vodafone Group Plc (ADR) (NASDAQ:VOD)
Verizon Communications Inc. (NYSE:VZ) will pay $130 billion to buy Vodafone Group Plc (ADR) (NASDAQ:VOD)’s 45 percent stake in their Verizon Wireless joint venture. The deal in cash and stock, due to close in the first quarter of next year, is the third largest in corporate history. Under the terms, Vodafone will get $58.9 billion in cash and $60.2 billion of Verizon shares, as well as an additional $11 billion from smaller transactions. https://www.valuewalk.com/2013/09/vodafone-verizon/
Jarden Corp (NYSE:JAH)
Jarden Corp (NYSE:JAH) has agreed to buy the nation’s largest maker of scented candles, Yankee Candle, from a fund managed by Madison Dearborn Partners LLC, for $1.75 billion in cash. Jarden, known for its household brands like Crock-Pot slow cookers, Sunbeam home appliances, and Rawlings baseball equipment, will fund the acquisition with cash, common equity and a mix of bank debt and bonds.
Ford Motor Company (NYSE:F)
The auto maker is recalling 370,000 Crown Victoria, Mercury Grand Marquis and Lincoln Town Car models in North America to fix a steering shaft issue. About 355,000 of the recalled cars are in the US and 15,000 in Canada, Ford said in a statement yesterday. No incidents or injuries have been reported due to the possible corrosion of the lower intermediate steering shaft that could cause a loss of steering.
J.C. Penney Company, Inc. (NYSE:JCP)
Dallas-based hedge fund Hayman Capital Management LP has taken a new 5.2 percent stake in J.C. Penney Company, Inc. (NYSE:JCP), according to a filing with the Securities and Exchange Commission. The firm, controlled by investor Kyle Bass, holds 11.4 million shares, making it one of the largest stockholders of the struggling department-store retailer. J.C. Penney shares were up in recent pre-market trading.
Bank of America Corp (NYSE:BAC)
Bank of America Corp (NYSE:BAC) is selling its remaining stake in China Construction Bank Corporation (HKG:0939) for up to $1.5 billion, ending an eight-year investment in China’s second biggest bank by market value. The U.S. lender is offering 2 billion Hong Kong-traded shares in a range of HK$5.63 to HK$5.81 each, representing a 2.0%-5.1% discount to CCB’s Tuesday’s closing price.
Economic Calendar for Tuesday, September 03, 2013:
08:58 A.M. ET: Markit Manufacturing PMI (August)
10:00 A.M. ET: ISM Manufacturing PMI (August)
10:00 A.M. ET: Construction Spending (MoM) (July)
10:00 A.M. ET: IBD/TIPP Economic Optimism (MoM) (September)
11:30 A.M. ET: 3-Month Bill Auction
11:30 A.M. ET: 6-Month Bill Auction