Morning Market Update
For much of the past decade, Crispin Odey has been waiting for inflation to rear its ugly head. The fund manager has been positioned to take advantage of rising prices in his flagship hedge fund, the Odey European Fund, and has been trying to warn his investors about the risks of inflation through his annual Read More
- US: Dow Futures: 12901.00 (-0.43%), S&P 500 Futures: 1358.30 (-0.31%), NASDAQ Futures: 2617.00 (-0.32%)
- Europe: CAC: 3173.13 (0.35%), DAX: 6525.15 (-0.56%), FTSE: 5655.06 (-1.97%).
- Asia-Pacific: Australia: 4301.30 (-2.15%), China: 2451.95 (-0.00%), Hong Kong: 20536.65 (-2.67%), India: 5114.15 (0.54%), Japan: 9119.14 (-2.86%).
- Metals: Gold: 1638.50 (-0.41%), Silver: 30.22 (-0.68%), Copper: 3.72 (-0.01%)
- Energy: Crude Oil: 97.87 (-0.63%), Natural Gas: 2.33 (2.15%)
- Commodities: Corn: 6.18 (1.18%), Soya Bean: 13.55 (-0.15%), Wheat: 6.08 (-1.14%)
- Currency: EUR/USD: 1.3030 (-0.41%), GBP/USD: 1.6147 (-0.02%), USD/JPY: 79.9600 (0.14%)
- 10 year US Treasury: 1.863% (-0.017)
Financial and Economic News Update
U.S. stock-index futures trading lower: U.S. stock index futures are pointing to a lower open on Monday on concerns about election results in Europe. The Dow Jones industrial average, the S&P 500 and the NASDAQ futures were all trading about 0.4 percent lower.
European markets bounce back: European markets bounced back from early morning lows caused by a knee-jerk reaction to French and German elections. In France voters elected Socialist Party candidate François Hollande as president, and in Greece, the two mainstream parties, conservative New Democracy party and the Socialist Pasok party, both of whom supported an EU-IMF aid programme to keep the country afloat failed to win enough votes to form a ruling coalition. The German DAX (INDEXDB:DAX) was 0.56 percent lower at 6525.15, the FTSE 100 (INDEXFTSE:UKX) was down 2 percent at 5655.06, and the CAC 40 (INDEXEURO:PX1) was up 0.35 percent at 3173.13. The euro zone blue-chip ESTX 50 PR.EUR (INDEXSTOXX:SX5E) (Euro Stoxx 50) was trading 0.14 percent higher.
Asian markets end lower: Asian markets closed lower on Monday, with Japan’s NIKKEI 225 (INDEXNIKKEI:NI225) slumping to a to a three-month low, down 2.8 percent. The HANG SENG INDEX (INDEXHANGSENG:HSI) ended down 2.61 percent at 20,536.65, while the SSE Composite Index (SHA:000001) (Shanghai Composite Index), closed at 2,451.9 points. The S&P/ASX 200 (INDEXASX:XJO) index witnessed its sharpest fall since December 19, sliding 2.2 percent lower.. The benchmark Indian 30-share BSE SENSITIVE (INDEXBOM:SENSEX) index 0.61 percent to 16,933.76 points
Company News Update
- Dish Network Corp. (NASDAQ:DISH), the second biggest US satellite TV provider, reported first quarter profit that topped analysts’ estimates after adding to its subscriber base.
- Tyson Foods, Inc. (NYSE:TSN) reported first quarter earnings of 44 cents a share on sales of $8.3 billion. Analysts were expecting a profit of 38 cents a share on revenue of $8.47 billion.
- Construction company Tutor Perini Corporation (NYSE:TPC) reported first quarter earnings excluding some items of 8 cents per share, trailing the average analyst estimate of 42 cents.
- The Walt Disney Company (NYSE:DIS)’s “Marvel’s The Avengers” raked in about $200.3 million at North American theaters over the weekend, topping the performance last year of Time Warner Inc.’s “Harry Potter and the Deathly Hallows: Part 2.”
- Billionaire investor Carl Icahn has made a big profit after selling his $250 million debt holdings in Philip Falcone’s LightSquared Inc., Reuters reported.
- The US Federal Communications Commission dismissed an application by Liberty Media Corp to take control of Sirius XM Radio Inc (NASDAQ:SIRI), the largest US satellite radio company.
- Commodity chemicals maker Westlake Chemical Corporation (NYSE:WLK) withdrew a $1.2 billion offer to buy Georgia Gulf Corporation (NYSE:GGC), North America’s largest maker of vinyl construction products.
- Jon Feltheimer, Chief Executive Officer of Lions Gate Entertainment Corp. (USA) (NYSE:LGF) said “The Hunger Games” has been approved for release in China in the first half of June.
- UK-based defence and security company BAE Systems plc (LON:BA) is closing in on a 500 million pounds ($808 million) deal to sell of as many as 30 Hawk training aircraft to Saudi Arabia.
- Three of France’s biggest banks, BNP Paribas SA (EPA:BNP), Societe Generale SA (EPA:GLE) and Credit Agricole SA (EPA:ACA) are bracing themselves up to face higher taxes after Francois Hollande was elected president. Hollande had pledged he would impose a tax on all transactions and increase the levy on bank profit by 15 percent.
- Dutch food ingredient maker CSM NV (AMS:CSM) is planning to sell its bakery ingredient division and will use the proceeds to fund the Purac and Caravan bio-based ingredients brands’ growth, and also to reduce debt.
- Basel, Switzerland-based Roche Holding AG, the biggest maker of cancer drugs, abandoned the development of an experimental cholesterol drug dalcetrapib “due to a lack of clinically meaningful efficacy.”
- Vehicle sales in China by Japan’s Toyota Motor Corporation (ADR) (NYSE:TM) and its two local joint venture partners recorded a 68 percent jump in April from a year earlier to about 81,700 units.
- Mitsubishi Estate Company., Limited (TYO:8802), Japan’s second biggest property developer, posted a 12 percent decline in full-year profit due to a decrease in rental income and a fall in apartment sales.
- Gree, Inc. (TYO:3632) plunged 23 percent in Tokyo trading after Japanese newspaper Yomiuri reported that the country’s Consumer Affairs Agency said some social-network game operators employ “questionable” sales methods.
- In an attempt to gain a larger share of the emerging Internet TV market, LG Electronics, the world’s second largest TV maker, is planning to launch an Internet-enabled TV based on Google’s platform in the United States within this month.
- Lenovo Group Limited (HKG:0992), the world’s second- biggest maker of personal computers, said it will invest 5 billion yuan ($792 million) over the next five years in an integrated mobile devices facility in China to research and produce mobile devices such as smart phones and tablet computers.
Economic Calendar for Monday, May 07, 2012:
11:00 A.M. ET: 4-Week Bill Announcement
11:30 A.M. ET: 3-Month Bill Auction
11:30 A.M. ET: 6-Month Bill Auction
03:00 P.M. ET: Consumer Credit Change (March)
06:00 P.M. ET: Richmond Federal Reserve Bank President Jeffrey Lacker speaks