Morning Market News: Updates on C, GCI, HPQ, GM, NOK, AAPL, GE, PRX

Market Levels

US: Dow Futures: 12665.00 (-0.35%), S&P 500 Futures: 1346.70 (-0.37%), NASDAQ Futures: 2572.00 (-0.19%)
Europe: CAC: 3172.21 (-0.27%), DAX: 6547.86 (-0.14%), FTSE: 5661.99 (-0.07%)
Asia-Pacific: Australia: 4105.10 (0.56%), China: 2147.96 (-1.77%), Hong Kong: 19121.34 (0.15%), India: 5197.25 (-0.57%), Japan: 8724.12 (0.00%).
Metals: Gold: 1587.10 (-0.31%), Silver: 27.10 (-0.98%), Copper: 3.48 (-0.70%)
Energy: Crude Oil: 86.78 (-0.37%), Natural Gas: 2.91 (1.15%)
Commodities: Corn: 7.70 (1.47%), Soya Bean: 15.91 (1.72%), Wheat: 8.91 (0.03%)
Currency: EUR/USD: 1.2242 (-0.06%), GBP/USD: 1.5599 (0.15%), USD/JPY: 78.8800 (-0.40%)
10 year US Treasury: 1.457% (-0.030)

Financial and Economic News Update

U.S. stock-index futures marginally lower: U.S. stock index futures are pointing to a lower open on Monday following a weaker-than-expected retail sales data. U.S. retail sales fell 0.5 percent in June, the third straight monthly drop, amid a broad slump in consumer demand, the Commerce Department said today. The Dow futures, the S&P futures and the NASDAQ future are all trading in the red.

European markets in the red: European markets are trading lower, with the German DAX (INDEXDB:DAX) trading down 0.1 percent at 6547.86, the FTSE 100 (INDEXFTSE:UKX) was 0.1 percent lower at 5661.99, and the CAC 40 (INDEXEURO:PX1) declined 0.3 percent to 3172.21. The euro zone blue-chip ESTX 50 PR.EUR (INDEXSTOXX:SX5E) (Euro Stoxx 50) was down 0.50 percent.

Asian markets edge higher: Asian markets closed mixed on Friday amid profit warnings from heavyweight Chinese companies.. Japan’s NIKKEI 225 (INDEXNIKKEI:NI225) was closed for a public holiday. The HANG SENG INDEX (INDEXHANGSENG:HSI) closed up 0.2 percent at 19,121.3, while the SSE Composite Index (SHA:000001) (Shanghai Composite Index) ended down 1.7 percent to 2,147.96. The S&P/ASX 200 (INDEXASX:XJO) index ended up 22.9 points to 4,105.1. The benchmark Indian 30-share BSE SENSITIVE (INDEXBOM:SENSEX) index closed down 0.6 percent to 17,096.98 points.

Stocks in Focus

U.S.

Citigroup Inc. (NYSE:C) reported second quarter earnings, excluding certain items of $1 that best the average analysts’ estimate of 89 cents per share. Revenue for the quarter came in at $18.6 billion that trailed Street expectations of $18.8 billion.

Media holding company Gannett Co., Inc. (NYSE:GCI) reported second quarter earnings, excluding certain items, of 56 cents per share, on revenue of $1.31 billion that missed analysts’ estimate of earnings of 58 cents per share, on revenue of $1.32 billion.
Hewlett-Packard Company (NYSE:HPQ)’s $2 billion multiyear services contract with General Motors Company (NYSE:GM) could be in danger, following the automaker’ decision to bring much of its IT work in-house. Separately, Lenovo Group Limited (HKG:0992) is well on track to overtake Hewlett-Packard Company (NASDAQ:HPQ) as the world’s biggest personal computer maker by sales as early as this year, according to a Reuters report.
Apollo Global Management LLC (NYSE:APO) is planning to table a bid for The McGraw-Hill Companies, Inc. (NYSE:MPH)’s education unit, in a deal worth as much as $3.8 billion, according to The Wall Street Journal.
Nokia Corporation (ADR) (NYSE:NOK) has slashed the price of its flagship smart phone in the United States, the Lumia 900, to $49.99 from $99, in a bid to gain ground against the more popular Apple Inc. (NASDAQ:AAPL) and Samsung.
Private equity firm TPG has agreed to acquire U.S.-based generic drugmaker, Par Pharmaceutical Companies, Inc. (NYSE:PRX) for $50 per share, a 37 percent premium to Friday’s closing price of $36.58.
General Electric Company (NYSE:GE) has been downgraded to “equal weight” from “overweight,” by analysts at Morgan Stanley, while the price target was left unchanged at $22. The stock was down 1 percent in pre-market trading.
3M Co (NYSE:MMM) has been upgraded to “overweight” from “equal weight” by analysts at Morgan Stanley, who said that historically, 3M has managed to stage an early recovery from slowdowns and recessions.
Restaurant chain Panera Bread Co (NASDAQ:PNRA) has been downgraded to “underweight” from “overweight” at Piper Jaffray, and its target price has been lowered to $129 from $165.
Life sciences equipment maker Thermo Fisher Scientific Inc. (NYSE:TMO) has agreed to buy privately held transplant diagnostics firm, One Lambda, for $925 million in cash.
Regis Corporation (NYSE:RGS) has agreed to sell its hair loss products unit, Hair Club for Men and Women, to Japan’s Aderans Co Ltd (TYO:8170), for $163.5 million in cash.

Europe

British drug maker GlaxoSmithKline plc (ADR) (NYSE:GSK) (LON:GSK) has agreed to acquire US biotechnology company, Human Genome Sciences (NASDAQ:HGSI), for about $2.8 billion.
London-listed security group G4S plc (LON:GFS) plunged 8.2 percent, following downgrades at UBS AG and Jefferies, after the company revealed it expects to incur a loss of between 35 million pounds ($54.5 million) and 50 million pounds ($77 million) in its London Olympic Games contract.
Spanish lenders Banco Santander, S.A. (NYSE:SAN) and Banco Bilbao Vizcaya Argentaria SA (ADR) (NYSE:BBVA) slumped 1 percent, after The Wall Street Journal reported that the European Central Bank, in a major turnaround, has advocated imposing losses on senior bondholders of Spanish banks.
Commodities trader Glencore International Plc (LON:GLEN), has received approval from Canadian regulator for its roughly 6.1 billion Canadian dollars ($6 billion) takeover of agribusiness group, Viterra Inc. (TSE:VT).
H & M Hennes & Mauritz AB (STO:HM-B), Europe’s second-largest clothing retailer, reported a lower than expected sales growth of 13 percent in June.
The Sage Group plc (LON:SGE), the U.K.’s biggest software maker, said that trading performance in the third quarter has been broadly in-line with its expectations, despite a toughening economic environment.
Swedish bank Skandinaviska Enskilda Banken AB (STO:SEB-A) jumped 6.8 percent after reporting second-quarter earnings that beat market expectations.
French oil major Total S.A. (ADR) (NYSE:TOT) (EPA:EP) was cut to “hold” from “buy” at Societe Generale. Dutch insurer, Delta Lloyd NV (AMS:DL) was upgraded to “buy” from “neutral” at Citigroup Inc.

Asia

Microsoft Corporation (NASDAQ:MSFT) and Intel Corporation (NASDAQ:INTC) are set to report lackluster sales growth figures amid a slowdown in demand from China, the world’s second largest economy, according to a report in Bloomberg News.
Thai oil firm PTT Exploration and Production has extended the deadline for its $1.9 billion offer for East Africa-focused gas explorer, Cove Energy PLC (LON:COV), to July 25. The Thai company is locked in a battle with Royal Dutch Shell plc (ADR) (NYSE:RDS.A) (LON:RDSA) to takeover the company.
Chinese telecommunications equipment maker, ZTE Corporation (H Shares) (HKG:0763), slumped to their lowest level in more than three years in Hong Kong trading, after the company said that first-half profit could fall as much as 80 per cent from a year ago.
Australian coal magnate Nathan Tinkler has offered 5.3 billion Australian dollars (US$5.35 billion) to take the country’s largest independent coal company, Whitehaven Coal Limited (ASX:WHC), private.
Oil and gas producer Beach Energy Limited (ASX:BPT) announced plans to accelerate its unconventional gas exploration program in the Australian Cooper Basin, with Icon Energy Limited (ASX:ICN).
Credit Suisse maintained its “outperform” rating on Sun Hung Kai Properties Limited (HKG:0016), Asia’s largest property developer by market value, despite the joint chairmen of the company being formally charged with bribery offenses by Hong Kong’s anti-graft law enforcement agency on Friday.
BHP Billiton Limited (ADR) (NYSE:BHP) (ASX:BHP) (LON:BLT), the world’s largest mining company, soared 1 percent in Sydney trading after it was rated new “overweight” at Barclays Capital.
Chinese home appliance retailer Suning Appliance Co., Ltd. (SHE:002024) sank by the daily limit of 10 percent in Shenzhen trading after the company warned that first-half profit may fall more than previously forecast due to lower sales.