Morning Market Update
Stocks that are expected to trade actively in U.S. markets on Wednesday include: Navistar International Corp (NYSE:NAV), Dollar General Corp. (NYSE:DG), Apple Inc. (NASDAQ:AAPL), LinkedIn Corp (NYSE:LNKD), Ciena Corporation (NASDAQ:CIEN), News Corp (NASDAQ:NWSA), H & R Block Inc (NYSE:HRB), Herbalife Ltd. (NYSE:HLF), Guidewire Software Inc (NYSE:GWRE), C.R. Bard, Inc. (NYSE:BCR), Rochester Medical Corporation (NASDAQ:ROCM).
The following is our rough coverage of the 2021 Sohn Investment Conference, which is being held virtually and features Brad Gerstner, Bill Gurley, Octahedron's Ram Parameswaran, Glenernie's Andrew Nunneley, and Lux's Josh Wolfe. Q1 2021 hedge fund letters, conferences and more Keep checking back as we will be updating this post as the conference goes Read More
US: Dow Futures: 14792.00 (-0.24%), S&P 500 Futures: 1636.50 (-0.15%), NASDAQ Futures: 3091.50 (0.20%)
Europe: CAC: 3931.60 (-1.07%), DAX: 8102.94 (-0.95%), FTSE: 6435.47 (-0.51%)
Asia-Pacific: Australia: 5161.60 (-0.67%), China: 2127.62 (0.21%), Hong Kong: 22326.22 (-0.31%), Japan: 14053.87 (0.54%).
Metals: Gold: 1400.50 (-0.81%), Silver: 23.76 (-2.76%), Copper: 3.24 (-1.98%)
Energy: Crude Oil: 108.04 (-0.46%), Natural Gas: 3.69 (0.74%)
Commodities: Corn: 4.72 (-0.63%), Soya Bean: 13.75 (-0.83%), Wheat: 6.45 (-0.35%)
Currency: EUR/USD: 1.3173 (0.02%), GBP/USD: 1.5604 (0.30%), USD/JPY: 99.4200 (-0.15%)
10-year US Treasury: 2.858% (0.000)
Market and Economic News Update:
U.S. stock-index futures mixed: U.S. stock-index futures were swinging between gains and losses on investor concerns over an imminent military strike against Syria. In economic news, the U.S. trade deficit rose 13.3 percent in July to $39.1 billion, according to the Commerce Department. Economists were expecting the trade deficit to increase to $38.7 billion. Up ahead, the Federal Reserve will publish the latest edition of its regional economic snapshot, the Beige Book, at 2 P.M. ET.
European markets fall: European markets are heading for the second straight day of losses amid the increasing likelihood of U.S. intervention in Syria, after President Barack Obama secured more support in the U.S. Congress for military action against the Syrian government that allegedly used chemical weapons against civilians. On the economic front, second quarter euro zone GDP was revised up to -0.5 percent from -0.7 percent. The FTSE 100 (INDEXFTSE:UKX) edged 0.5 percent lower to 6435.47 points. The CAC 40 (INDEXEURO:PX1) lost 1.1 percent to 3931.60 points, while the DAX (INDEXDB:DAX) shed 1 percent to 8102.94. The euro zone blue-chip ESTX 50 PR.EUR (INDEXSTOXX:SX5E) (Euro Stoxx 50) was down 0.9 percent in recent trading.
Asian stocks end mixed: Asian markets struggled for direction amid growing fears of U.S. military intervention in Syria. The NIKKEI 225 (INDEXNIKKEI:NI225) crossed the 14,000 mark as the yen weakened to 99.8 per dollar. The SSE Composite Index (SHA:000001) (Shanghai Composite Index) reversed early morning losses to end higher after data from HSBC’s services purchasing manager’s index showed that growth in China’s services sector hit a five-month high in August. The S&P/ASX 200 (INDEXASX:XJO) index fell in trade amid broad declines in banking stocks.
Stocks in News:
Navistar International Corp (NYSE:NAV)
Navistar International Corp (NYSE:NAV) swung to a fiscal third-quarter loss and said it would cut 500 jobs by the end of the fiscal 2013, sending shares sharply lower in recent pre-market trading. The commercial truck manufacturer posted a loss of $247 million, or $3.06 per share, compared to a year-ago profit of $84 million, or $1.22 per share. Excluding one-time items, Navistar reported a loss of $2.94 a share. Revenue dropped 12 percent to $2.9 billion. Analysts had most recently projected a loss of $1.30 on sales of $2.92 billion.
Dollar General Corp. (NYSE:DG)
Dollar General Corp. (NYSE:DG)’s second-quarter profit rose to $245.5 million, or 75 cents a share, from $214.1 million, or 64 cents a share, in the same period last year. Adjusted to exclude certain items, the retail company reported earnings of 77 cents per share, up from 69 cents a year in the year-ago period. Revenue increased to $4.4 billion from $3.9 billion a year earlier. Analysts had expected earnings of 74 cents a share on sales of $4.4 billion. For the full-year, the company expects earnings per share to be in a range of $3.15 to $3.22. Shares in Dollar General surged in pre-market trading.
Apple Inc. (NASDAQ:AAPL)
Cantor Fitzgerald initiated coverage of Apple Inc. (NASDAQ:AAPL) with a “buy” rating and a target price of $777. Cantor said that the tech giant is “in the midst of a recovery,” and that current valuations were attractive. Apple shares closed Tuesday at $488.58, and rose 2 percent in pre-market trading.
LinkedIn Corp (NYSE:LNKD)
Shares of the social-network company fell in pre-market trading after it unveiled plans to sell $1 billion of stock in a follow-on offering. The company is planning to sell 4.17 million shares of its Class A common stock, according to a prospectus filed with the U.S. Securities and Exchange Commission yesterday. LinkedIn Corp (NYSE:LNKD) said it will use the proceeds to further expand its product slate and expand abroad. https://www.valuewalk.com/2013/09/linkedin-corp-lnkd-plans-to-offer-1b-in-stock/
Ciena Corporation (NASDAQ:CIEN)
Ciena Corporation (NASDAQ:CIEN)’s fiscal third-quarter loss narrowed as the network-equipment company posted higher revenue amid increased spending from telecom companies. Ciena reported adjusted earnings of 23 cents a share, 7 cents above the average analysts’ estimate. Revenue rose 14 percent to $538.4 million, also topping expectations for $533.5 million. The company forecast current-quarter revenue of $550 million to $580 million, mostly ahead of the Street view of $551 million.
News Corp (NASDAQ:NWSA)
Rupert Murdoch’s News Corp (NASDAQ:NWSA) said it sold its Dow Jones Local Media Group, which operates eight daily and 15 weekly community newspapers, to a unit of Fortress Investment Group LLC for an undisclosed sum. The media company had acquired the collection of small newspapers and niche publications as part of its 2007 acquisition of Dow Jones & Co., publisher of The Wall Street Journal. https://www.valuewalk.com/2013/09/news-corp-sheds-dow-jones-local-media-group/
H & R Block Inc (NYSE:HRB)
H & R Block Inc (NYSE:HRB) reported an adjusted loss of 40 cents per share on revenue of $127 million for its fiscal first-quarter. Analysts were expecting a loss of 37 cents per share on sales of $98.4 million. In addition, the tax-services provider said that its plan to shed its banking unit will be delayed due to delay in getting necessary regulatory approval. Shares tumbled in recent trading.
Herbalife Ltd. (NYSE:HLF)
Post Holdings Inc (NYSE:POST) CEO William Stiritz reported a 5 percent stake in Herbalife Ltd. (NYSE:HLF) in a regulatory filing late Tuesday. Stiritz disclosed he owned about 5.4 million Herbalife shares, making him the fourth largest shareholder after the stock purchase A Post Holdings representative said Stiritz’s investment in the nutritional supplement maker was a personal investment decision and not related to the company. https://www.valuewalk.com/2013/09/william-stiritz-stake-in-herbalife/
Guidewire Software Inc (NYSE:GWRE)
The business software company posted fiscal fourth quarter adjusted earnings of 25 cents per share, edging past forecasts for 14 cents per share. Revenue jumped 43 percent from a year earlier to $96.9 million, also toping expectations for $93.10 million. License revenues for the period ended July 31 soared 70 percent, maintenance revenue rose 26 percent, and services revenues increased 23 percent, year-on-year.
C.R. Bard, Inc. (NYSE:BCR), Rochester Medical Corporation (NASDAQ:ROCM)
C.R. Bard, Inc. (NYSE:BCR) has agreed to acquire urology products maker Rochester Medical Corporation (NASDAQ:ROCM) in a deal valued at roughly $262 million. C.R. Bard will pay $20 per Rochester Medical share, a 45 percent premium to the stock’s Tuesday’s close. C.R. Bard had last month agreed to acquire Medafor Inc., a privately-held developer and supplier of blood clotting product, for $200 million in cash.
Economic Calendar for Wednesday, September 04, 2013:
07:00 A.M. ET: MBA Mortgage Applications (August 30)
08:30 A.M. ET: Trade Balance (July)
08:55 A.M. ET: Redbook Index (MoM)
09:45 A.M. ET: ISM New York index (August)
11:30 A.M. ET: 4-Week Bill Auction
02:00 P.M. ET: Beige Book