Morning Market Update
Greenhaven Road Capital commentary for the third quarter ended September 30, 2022. Q3 2022 hedge fund letters, conferences and more Dear Fellow Investors, The Fund is enduring its worst drawdown since inception. We were down again in the third quarter, bringing year -to-date returns to approximately -59%. Returns vary by . . . SORRY! This Read More
* US: Dow Futures: 12775.00 (-0.01%), S&P 500 Futures: 1358.70 (0.08%), NASDAQ Futures: 2619.25 (0.19%)
* Europe: CAC: 3249.16 (0.28%), DAX: 6544.68 (0.74%), FTSE: 6544.68 (0.33%).
* Asia-Pacific: Australia: 4127.20 (-0.14%), China: 2229.19 (0.14%), Hong Kong: 19735.53 (1.49%), India: 5287.95 (0.18%), Japan: 9066.59 (0.70%).
* Metals: Gold: 1613.40 (0.98%), Silver: 27.95 (1.64%), Copper: 3.53 (1.67%)
* Energy: Crude Oil: 85.66 (2.28%), Natural Gas: 2.84 (0.71%)
* Commodities: Corn: 6.66 (3.71%), Soya Bean: 14.48 (0.74%), Wheat: 7.93 (1.80%)
* Currency: EUR/USD: 1.2571 (-0.04%), GBP/USD: 1.5676 (-0.10%), USD/JPY: 79.8200 (0.38%)
* 10 year US Treasury: 1.594% (0.007)
Financial and Economic News Update
U.S. stock-index futures unchanged: U.S. stock index futures are pointing to a flat on Tuesday, as investors await a report on factory orders. The Dow futures, the S&P futures and the NASDAQ future are all trading close to the flat-line.
European markets in the green: European markets are trading higher, with the German DAX (INDEXDB:DAX) trading 0.7 percent higher at 6544.68, the FTSE 100 (INDEXFTSE:UKX) up 0.3 percent at 6544.68, and the CAC 40 (INDEXEURO:PX1) gained 0.3 percent to 3249.16. The euro zone blue-chip ESTX 50 PR.EUR (INDEXSTOXX:SX5E) (Euro Stoxx 50) was up 0.6 percent.
Asian markets end mostly higher: Asian markets closed higher on Tuesday amid investor optimism that the European Central Bank and the Federal Reserve may take further steps to boost their ailing economies. Japan’s NIKKEI 225 (INDEXNIKKEI:NI225)ended up 0.7 percent at 9,066.59 points. The HANG SENG INDEX (INDEXHANGSENG:HSI) closed the day up 1.5 percent at 19,735.5, while the
SSE Composite Index (SHA:000001) (Shanghai Composite Index) closed marginally higher at 2,229.2 points. The S&P/ASX 200 (INDEXASX:XJO) index shed 5.8 points to close at 4,127.2. The benchmark Indian 30-share BSE SENSITIVE (INDEXBOM:SENSEX) index ended the day almost flat, up 0.1 percent.
Stocks in Focus
* Automakers Ford Motor Company (NYSE:F) and General Motors Company (NYSE:GM) will today report U.S. sales figures for June.
* BlackRock, Inc. (NYSE:BLK), the world’s largest asset manager, has agreed to buy the private equity and infrastructure fund of funds franchise of Swiss reinsurer, Swiss Re, for an undisclosed sum.
* U.S. plane maker The Boeing Company (NYSE:BA) raised its 20-year market forecast, on improving demand mainly in Asia Pacific, and said that it expects the world’s airlines to buy around 34,000 new aircraft worth $4.5 trillion over the next 20 years.
* General Motors Company (NYSE:GM) is in talks with Facebook Inc (NASDAQ:FB) to return as a paid advertiser on the social networking site, according to The Wall Street Journal.
* Technology services firm MModal Inc (NASDAQ:MODL) has agreed to be bought by One Equity Partners, the private investment arm of J.P. Morgan Chase & Co. (NYSE:JPM), for about $1.1 billion.
* Electric utility company Duke Energy Corporation (NYSE:DUK) has completed its $32 billion merger with Progress Energy, Inc. (NYSE:PGN), after South Carolina regulators approved the deal on Monday. Duke chief executive, Jim Rogers, has been named as president and chief executive of the combined company.
* The Wall Street Journal reported that U.S. truck maker Navistar International Corp (NYSE:NAV) is likely to abandon the pollution-reduction technology used in its truck engines, in an attempt to reverse falling truck sales and end conflict with federal regulators.
* Chesapeake Energy Corporation (NYSE:CHK) and EnCana Corporation (USA) (NYSE:ECA), Canada’s largest natural gas producer, are likely to be in focus today, after the US Justice Department launched an investigation against the two companies for possible collusion over Michigan land deals. Separately, Carl Icahn told CNBC that Chesapeake Energy Corporation (NYSE:CHK) is a “very undervalued asset,” and that he was not planning to sell its shares now.
* The Corporate Executive Board Company (NYSE:EXBD) will buy privately held UK-based talent-testing and management solutions company, SHL, for $660 million in cash.
* Bob Diamond, Chief Executive of Barclays PLC (ADR) (NYSE:BCS), resigned on Tuesday, amid increasing political pressure to step down, following the interest rate rigging scandal at the bank.
* Deutsche Telekom AG (ETR:DTE) is in talks with Google Inc (NASDAQ:GOOG) to collaborate on the telecom operator’s mobile-payment service. The German carrier has already teamed up with Mastercard Inc (NYSE:MA) to enable consumers to use their mobile phones to pay for goods and services.
* French car maker Peugeot SA (EPA:UG) is planning to cut as much as 10 percent of its French workforce this year, substantially higher than a previously announced lay-off plan, amid a slump in demand for cars.
* The European Commission has raised several objections to Vivendi SA (EPA:VIV)-owned Universal Music Group’s $1.9 billion bid for EMI’s record labels
* Italian carmaker Fiat SpA (BIT:F) said it would raise its stake in its US subsidiary, Chrysler Group LLC, to 61.8 percent from 58.5 percent.
* The U.S. Defense Department has awarded a contract worth up to $2.1 billion, for shipping U.S. military cargo, to Maersk Line, the world’s biggest container shipper, and a unit of Denmark’s AP Moller-Maersk Group.
* A request by South Korea’s Samsung Electronics to temporarily lift a ban on U.S. sales of its Galaxy Tab 10.1, that competes with Apple Inc. (NASDAQ:AAPL)’s iPad, has been rejected by a U.S. judge.
* Toyota Motor Corporation (ADR) (NYSE:TM) said that sales in China rose 18.6 percent in June from the same period last year, partly helped by a pick-up in production.
* Japan’s biggest brokerage, Nomura Holdings, Inc. (ADR) (NYSE:NMR), has been dropped as an underwriter for state-owned Development Bank of Japan Inc.’s planned bond offerings, because of its involvement in insider trading scandals.
* Struggling Japanese chipmaker Renesas Electronics Corporation (TYO:6723) said it will reduce its global work-force by 12 percent, and sell or consolidate half of its 19 domestic production facilities, as part of a massive restructuring plan.
* Gaming stocks like Wynn Macau Ltd (HKG:1128), Sands China Ltd. (HKG:1928) and MGM China Holdings Ltd (HKG:2282)declined in Hong Kong after data showed lower-than-expected monthly revenues for casinos in Macau.
* All Nippon Airways Co., Ltd. (TYO:9202) will raise up to 212 billion yen ($2.6 billion) through a public share offering, the proceeds from which will be used to buy new planes and bolster its finances.
* The Australian Securities and Investments Commission will investigate the abandoned 1.65 billion Australian dollars ($1.7 billion) takeover offer for department store chain, David Jones Limited (ASX:DJS), from a little know British private equity firm, EB Private Equity.
* Australian iron ore developer Flinders Mines Limited (ASX:FMS) plunged 7 percent in Sydney trading, after Russian steel maker Magnitogorsk Iron & Steel Works dropped its 554 million Australian dollars ($567 million) bid to acquire the company.
* Japanese shipping line Kawasaki Kisen Kaisha, Ltd. (TYO:9107) said it will raise up to 28.6 billion yen ($360 million) in a public share sale, to invest in new vessels.
Economic Calendar for Tuesday, July 03, 2012:
07:45 A.M. ET: ICSC-Goldman Store Sales (Week ending Saturday, June 30, 2012)
08:55 A.M. ET: Redbook (Week ending Saturday, June 30, 2012)
10:00 A.M. ET: Factory Orders (MoM) (May)
10:00 A.M. ET: ISM Prices Paid (June)
11:30 A.M. ET: 4-Week Bill Auction
02:00 P.M. ET: Auto Sales (June)
02:00 P.M. ET: Truck Sales (June)