Stocks that are expected to trade actively in U.S. markets on Monday include: Materion Corp (NYSE:MTRN), Talisman Energy Inc. (NYSE:TLM), Cooper Tire & Rubber Co (NYSE:CTB), Alcoa Inc (NYSE:AA) and Yum! Brands, Inc. (NYSE:YUM).
U.S.: DJIA 14,936.24 (-0.90%), S&P 1,676.12 (-0.85%), NASDAQ 3,770.38 (-0.98%).
Europe: FTSE 6,417.20 (-0.33%), DAX 8,591.58 (-0.36%), CAC 40 4,165.58 (0.03%).
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
Asia Pacific: NIKKEI 13,904.76 (0.37%), SHANGHAI 2,195.49 (0.96%), HSI 23,207.79 (1.02%), ASX 200 5,148.10 (-0.24%), KOSPI 2002.76 (0.42%).
Commodities: Oil 103.11 (0.08%), NAT GAS 3.637 (0.22%), Gold 1325.00 (-0.01%), Silver 22.33 (-0.25%), Wheat 697.25, (0.36%), Corn 449.00 (-0.06%).
Currency: EUR/USD 1.357 (-0.08%), USD/JPY 97.060 (0.38%), GBP/USD 1.6068 (-0.16%).
10-year US Treasury: 2.643 (0%).
Market and Economic Update
U.S. markets look weak: Dollar and Wall Street stocks were down on Monday due to increasing concerns over the week long U.S. government shutdown. The dollar was around its eight-month low against a basket of major trading currencies. The benchmark S&P 500 has been on the decline for two weeks, and is down around 3 percent from its all-time closing high of 1,725.52 recorded on September 18.
European markets down: European stocks seem to witness falling trend on Tuesday, declining fourth time in five sessions. Reason behind downtrend is lack of confidence among investors who are not seeing any significant progress in resolving the United States budget standoff. At 0703 GMT, the FTSEurofirst 300 index was down 0.1 percent at 1,240.37 points.
Asian markets rebound – Nikkei average surged for the first time in five sessions marking rebound is Asian markets. However, due to the United States shutdown and debt ceiling, investors are still reeling under pessimism. The benchmark Nikkei closed up 0.3 percent at 13,894.61, from a five-week low of 13,748.94. Hong Kong market also rebounded today backed by strong performance in China’s markets led by investors welcoming Golden Week holiday spending in property and retail sectors
Stocks in News
Materion Corp (NYSE:MTRN)
A specialty metal products company expects third quarter earnings to be below analyst expectations owing to weak business environment and a delay in high-margin shipments. The metal company told that slow business conditions showed no improvements during the quarter, which the company initially anticipated.
Talisman Energy Inc. (NYSE:TLM)
Carl Icahn acquired a 6 percent stake in the Calgary, Alberta-based company, which pushed the stock of the company by 6.7 percent to $13.60 in after-hours trading. According to Carl Icahn, he may hold a talk with management about a board seats and strategic alternatives.
Cooper Tire & Rubber Co (NYSE:CTB)
Apollo Tires informed yesterday that it plans to reduce its bid $2.5 billion purchase of Cooper Tire & Rubber Co (NYSE:CTB) on account of “significant and unanticipated costs,” which were unknown initially. On Friday, Cooper files a complaint pushing Apollo to complete the transaction.
Alcoa Inc (NYSE:AA)
Analysts expect Alcoa Inc (NYSE:AA) to post third-quarter earnings of 6 cents a share. Morgan Stanley, on Monday, lowered the rating of Alcoa from Overweight to Equal Weight owing to lower aluminum price forecasts. Also, J.P. Morgan reduced its earnings estimate for Alcoa to 5 cents a share from 12 cents a share.
Yum! Brands, Inc. (NYSE:YUM)
Yum! Brands, Inc. (NYSE:YUM) is expected to report 93 cents a share for the third quarter. Experts feel that China numbers will be the most watched item and any improvement in China will be a big boost for the shares.