Morning Market Update
This year has been a record-breaking year for initial public offerings with companies going public via SPAC mergers, direct listings and standard IPOS. At Techlive this week, Jack Cassel of Nasdaq and A.J. Murphy of Standard Industries joined Willem Marx of The Wall Street Journal and Barron's Group to talk about companies and trends in Read More
• US: Dow: 12913.00 (0.39%), S&P 500: 1391.60 (0.18%), NASDAQ: 2619.00 (0.34%)
• Europe: CAC: 3422.30 (0.37%), DAX: 7243.79 (0.15%), FTSE: 5800.41 (0.15%).
• Asia-Pacific: Australia: 4483.80 (-0.72%), China: 2071.51 (-1.65%), Hong Kong: 21566.91 (-2.47%), India: 5738.75 (-0.37%), Japan: 8837.15 (-1.54%).
• Metals: Gold: 1713.80 (-0.01%), Silver: 31.75 (0.28%), Copper: 3.46 (0.41%)
• Energy: Crude Oil: 85.40 (1.14%), Natural Gas: 3.54 (-1.12%)
• Commodities: Corn: 7.43 (0.44%), Soya Bean: 15.06 (-0.43%), Wheat: 8.89 (1.91%)
• Currency: EUR/USD: 1.2750 (-0.16%), GBP/USD: 1.5993 (0.05%), USD/JPY: 79.8500 (-0.18%)
• 10 year US Treasury: 1.685% (0.038)
Financial and Economic News Update
U.S. stock-index futures gain: U.S. stock-index futures are pointing to a higher open on Thursday, buoyed by better-than-expected jobless data. Jobless claims fell 8,000 to a seasonally adjusted 355,000 in the previous week, the Labor Department said on Thursday. Economists were expecting a reading of 370,000. In other economic news, the U.S. trade deficit narrowed in September.
European markets trading higher: European markets are up in trade today, with the German DAX (INDEXDB:DAX) adding 0.2 percent to 7243.79, the FTSE 100 (INDEXFTSE:UKX) edging 0.2 percent higher to 5800.41 and the CAC 40 (INDEXEURO:PX1) gaining 0.4 percent to 3422.30. The euro zone blue-chip ESTX 50 PR.EUR (INDEXSTOXX:SX5E) (Euro Stoxx 50) was trading 0.6 percent higher.
Asian markets end lower: Asian markets closed lower on Thursday with the HANG SENG INDEX (INDEXHANGSENG:HIS) down 2.4 percent to 21,566.9 points, while the SSE Composite Index (SHA:000001) (Shanghai Composite Index) lost 1.6 percent. Japan’s NIKKEI 225 (INDEXNIKKEI:NI225) dropped 1.5 percent to 8,837.15, its lowest close since October 17. The S&P/ASX 200 (INDEXASX:XJO) index fell 32.7 points to 4,483.8. The benchmark Indian 30-share BSE SENSITIVE (INDEXBOM:SENSEX) index dropped 0.4 percent.
• McDonald’s Corporation (NYSE:MCD) said its October same-store sales fell 1.8 percent, the first monthly decline in nine years. Analysts had forecast a decrease of 1.1 percent.
• The Wendy’s Company (NASDAQ:WEN) reported third quarter earnings excluding certain items of 3 cents a share, compared to analysts’ expectations for earnings of 5 cents a share. Revenue came in at $636.3 million, trailing estimates of $640.6 million. The fast food restaurant operator doubled the quarterly dividend to 4 cents a share.
• Carlyle Group LP (NASDAQ:CG) reported third-quarter economic net profit of $219 million, compared with a loss of $191 million in the year-ago period. Assets under management stood at $157.4 billion at the end of September, up from $156.2 billion in the second quarter and $148.6 billion a year ago.
• Duke Energy Corp (NYSE:DUK) reported third quarter earnings excluding items of $1.47 a share, 3 cents above the average analysts’ estimate. Revenue rose to $6.72 billion from $3.96 billion, trailing Street expectations for $6.79 billion.
• Kohl’s Corporation (NYSE:KSS) reported third-quarter profit of $215 million, or 91 cents a share, up from $211 million, or 80 cents a share, in the year-ago period. Sales increased to $4.49 billion from $4.38 billion. Analysts expected the retailer to earn 87 cents a share on sales of $4.49 billion.
• Prudential Financial Inc (NYSE:PRU) reported third quarter operating profit of $1.53 a share, missing the average analysts’ estimate of $1.67 a share. The life insurer raised its annual dividend to $1.60 a share from $1.45 a share.
• Medical device maker Boston Scientific Corporation (NYSE:BSX) has agreed to buy privately held Vessix Vascular Inc. for as much as $425 million.
• PPL Corporation (NYSE:PPL) posted third quarter adjusted earnings of 72 cents a share, on revenue of $2.4 billion. Analysts had projected earnings of 68 cents a share on revenue of $2.79 billion.
• Dean Foods Company (NYSE:DF) reported third quarter earnings excluding certain items of 33 cents per share, 7 cents above estimates. The food and beverage company raised its full-year forecast.
• United Continental Holdings Inc (NYSE:UAL) said traffic fell 3.3 percent in October from a year earlier as superstorm Sandy disrupted its operations.
• Foreign-exchange broker FXCM Inc (NYSE:FXCM) posted better than expected third quarter earnings and revenue despite a drop in trading volume and daily average trades.
• Monster Beverage Corp (NASDAQ:MNST) reported third quarter earnings of 47 cents a share on revenue of $542 million that trailed the average analysts’ estimate of 55 cents a share on sales of $578 million.
• Westlake Chemical Corporation (NYSE:WLK) said third-quarter profit jumped 28 percent to $87 million, or $1.30 a share, from $67.9 million, or $1.01 a share, a year earlier. Revenue fell 15 percent to $821.2 million.
• Upscale supermarket chain Whole Foods Market, Inc. (NASDAQ:WFM) reported fourth quarter earnings of 60 cents a share on revenue of $2.91 billion, matching Wall Street expectations. The company handed full-year 2013 earnings guidance that trailed estimates.
• Universal Display Corporation (NASDAQ:PANL) reported third quarter loss of $5.5 million, or 12 cents a share, compared with a year-ago profit of $6 million, or 12 cents a share. Revenue declined 43 percent to $12.5 million. Analysts were expecting the LED supplier to earn 5 cents a share and revenue of $19 million.
• Mondelez International Inc (NASDAQ:MDLZ), the newly spun-off snack company from Kraft Foods Inc. reported third quarter earnings of 37 cents a share, beating estimates by a penny. Revenue came in at $8.3 billion, trailing expectations for $8.66 billion. The company provided 2013 full-year earnings guidance that was also below expectations.
• Canadian auto-parts giant Magna International Inc. (USA) (NYSE:MGA) (TSE:MG) reported better than expected third quarter earnings and revenue, and said founder, Frank Stronach, will step down from the board.
• French bank Societe Generale SA (EPA:GLE) said third quarter net profit fell 86 percent to 85 million euros ($108 million), from 622 million euros last year. Revenue dropped 17 percent to 5.4 billion euros from 6.5 billion euros a year earlier. Shares were up as much as 3.7 percent in Paris trading after earnings at its corporate and investment bank rose fourfold.
• British insurer Aviva Plc (ADR) (NYSE:AV) (LON:AV) is close to selling its underperforming U.S. life insurance and annuities business, according to a Reuters report.
• Siemens AG (ADR) (NYSE:SI) (ETR:SIE) (FRA:SIE) jumped 3.6 percent after Europe’s largest engineering company said it would cut 6 billion euros ($7.67 billion) of costs by 2014.
• Deutsche Post AG (ETR:DPW) (FRA:DPW) said third-quarter profit fell 6.5 percent to 604 million euros ($770 million) from 646 million euros a year earlier. Analysts were expecting Europe’s largest postal service to report profit of 641.3 million euros. Revenue rose 5.7 percent to 13.8 billion euros.
• Dutch insurer Aegon N.V. (ADR) (NYSE:AEG) (AMS:AGN) soared 4 percent after posting forecast beating third-quarter profit.
• HeidelbergCement AG (ETR:HEI) (FRA:HEI) said third quarter operating income jumped 16 percent on the year to 649 million euro ($827.5 million), while sales increased 8.8 percent to 3.94 billion euros. The German cement maker affirmed its outlook for improved 2012 revenue.
• French luxury goods maker Hermes International SCA (EPA:RMS) gained 3 percent after third-quarter sales jumped 24 percent from a year earlier to 848.6 million euros. Analysts had projected sales of 803.8 million euros. The company also increased its full-year revenue growth target.
• Swedish construction company Skanska AB (STO:SKA-B) lost 1.4 percent after reporting lower-than-expected third-quarter earnings, and warned of weak demand in the Nordic region.
• Veolia Environnement Ve SA (ADR) (NYSE:VE) (EPA:VIE) is up 2 percent after signing a multi-million pound waste treatment and energy recovery agreement with the British city of Leeds.
• Drug maker BTG plc (LON:BTG) surged 8 percent after posting first-half adjusted earnings of 5.6 pence per share, compared with 3.9 pence per share in the year-ago period. The company also reiterated its 2013 revenue forecast.
• Investment manager Schroders plc (LON:SDR) gained 1 percent after reporting 2.6 billion pounds ($4.2 billion) of net new funds inflow for the third quarter.
• Peugeot SA (EPA:UG), Europe’s second-biggest carmaker, fell 4.1 percent in Paris after analysts at Citigroup Inc. cut the stock to “sell” from “neutral.”
• Japanese mobile operator Softbank Corp (TYO:9984) gained 0.3 percent in Tokyo after reporting strong subscriber growth in October. Softbank gained a net 284,200 mobile phone subscribers last month, more than rivals NTT Docomo Inc (ADR) (NYSE:DCM) (TYO:9437) and KDDI Corp (TYO:9433).
• Lenovo Group Limited (HKG:0992) said second quarter net profit gained 13 percent to $162.1 million from $143.9 million a year earlier, exceeding analysts’ forecasts of $154.6 million. Revenue rose 11 percent to $8.67 billion from $7.79 billion in the year ago period, also topping estimates of $8.65 billion.
• Qantas Airways Limited (ASX:QAN) said it will cut another 400 jobs from its engineering division as part of a previously announced plan to consolidate its operations.
• Watchmaker Citizen Holdings Co., Ltd. (TYO:7762) fell 7.9 percent after slashing its full-year operating profit outlook to 14.5 billion yen from 20.5 billion yen, due to weak demand in China and Europe.
• Australian rare earths miner Lynas Corporation Limited (ASX:LYC) soared 12 percent after a Malaysian court lifted a suspension on its licence to operate a controversial rare earths processing plant in the country.
• Truckmaker Isuzu Motors Limited (TYO:7202) jumped 4.7 percent in Tokyo after reporting a 25 percent increase in first-half net profit, and raising its full-year net profit forecast to 91 billion yen from a prior forecast of 81 billion yen.
• Macau casino operator Galaxy Entertainment Group Limited (HKG:0027) dropped 4.4 percent in Hong Kong after private equity firm Permira Advisers LLP agreed to sell its remaining 5.94 percent stake in the company through a private placement.
• Construction equipment maker Komatsu Ltd (TYO:6301) fell 2.2 percent after Japan’s machinery orders fell 4.3 percent in September, compared to expectations for a drop of 2.1 percent.
• Linc Energy Ltd (ASX:LNC) jumped 6.7 percent in Sydney amid reports that Russian billionaire Roman Abramovich is considering investing in the Queensland-based resource company.
Economic Calendar for Thursday, November 08, 2012:
08:30 A.M. ET: Initial Jobless Claims (Week ending Saturday, November 03, 2012)
08:30 A.M. ET: Continuing Jobless Claims (Week ending Saturday, October 27)
08:30 A.M. ET: Trade Balance (September)
09:45 A.M. ET: Bloomberg Consumer Comfort Index (Week ending Sunday, Nov. 04)
10:30 A.M. ET: EIA Natural Gas Report (Week ending Friday, November 02, 2012)
01:00 P.M. ET: 30-Year Bond Auction
04:30 P.M. ET: Fed Balance Sheet
04:30 P.M. ET: Money Supply
08:00 P.M. ET: St. Louis Federal Reserve Bank President James Bullard speaks.