Morning Market Update
Earlier this month, value investor Mohnish Pabrai took part in a Q&A session with William & Mary College students. Q3 2021 hedge fund letters, conferences and more Throughout the discussion, the hedge fund manager covered a range of topics, talking about his thoughts on valuation models, the key lessons every investor should know, and how Read More
* US: Dow Futures: 12825.00 (-0.05%), S&P 500 Futures: 1357.50 (-0.29%), NASDAQ Futures: 2639.25 (-0.12%)
* Europe: CAC: 3215.09 (-0.44%), DAX: 6508.42 (-0.42%), FTSE: 5683.85 (-0.15)
* Asia-Pacific: Australia: 4157.80 (-0.27%), China: 2223.58 (1.00%), Hong Kong: 19800.64 (-0.04%), India: 5316.95 (-0.18%), Japan: 9020.75 (-0.65%).
* Metals: Gold: 1595.40 (-0.87%), Silver: 27.42 (-0.93%), Copper: 3.47 (-0.79%)
* Energy: Crude Oil: 85.45 (-2.03%), Natural Gas: 2.99 (1.39%)
* Commodities: Corn: 6.98 (4.75%), Soya Bean: 15.17 (3.60%), Wheat: 8.26 (3.93%)
* Currency: EUR/USD: 1.2354 (-0.30%), GBP/USD: 1.5534 (0.05%), USD/JPY: 79.5800 (-0.43%)
* 10 year US Treasury: 1.645% (-0.011)
Financial and Economic News Update
U.S. stock-index futures decline:U.S. stock index futures are to a lower on Friday, following data from the Labor Department that showed non-farm payroll increased by 80,000, missing expectations for a gain of 90,000 jobs. The unemployment rate however held steady at 8.2 percent. The Dow futures, the S&P futures and the NASDAQ future are all trading marginally in the red.
European markets in the red: European markets are trading lower, with the German DAX (INDEXDB:DAX) trading down 0.4 percent at 6508.42, the FTSE 100 (INDEXFTSE:UKX) 0.2 percent lower at 5683.85, and the CAC 40 (INDEXEURO:PX1) declined 0.4 percent to 3215.09. The euro zone blue-chip ESTX 50 PR.EUR (INDEXSTOXX:SX5E) (Euro Stoxx 50) was down 0.6 percent.
Asian markets end lower: Asian markets closed lower on Friday with Japan’s NIKKEI 225 (INDEXNIKKEI:NI225) down 0.7 percent to 9,020.75. The HANG SENG INDEX (INDEXHANGSENG:HSI) ended the day down 0.04 percent, while the SSE Composite Index (SHA:000001) (Shanghai Composite Index) closed a percent higher at 2,223.6 points. The S&P/ASX 200 (INDEXASX:XJO) index shed 11.4 points to 4,157.8. The benchmark Indian 30-share BSE SENSITIVE (INDEXBOM:SENSEX) index ended down 0.1 percent.
Stocks in Focus
* Goldman Sachs Group, Inc. (NYSE:GS)’s asset management unit will face a 313 million euro ($387 million) lawsuit over its handling of the Dutch pension fund, Pensioenfonds Vervoer, according to a report in the British daily, Telegraph.
* Private equity firm KKR & Co. L.P. (NYSE:KKR) agreed to buy German cutlery and coffee machines business WMF Wuerttembergische Metallwarenfabrik (ETR:WMF) for about 587 million euros ($727 million).
* Amazon.com, Inc. (NASDAQ:AMZN) is working on a smart phone that would directly compete with Apple Inc. (NASDAQ:AAPL)’s iPhone and other handheld devices that use Google Inc (NASDAQ:GOOG)’s Android operating system, Bloomberg reported.
* Electronic storage device maker Seagate Technology PLC (NASDAQ:STX) warned fiscal fourth quarter revenue will come in well below analysts’ expectations, amid reduced hard-drive shipments and quality issues at a supplier.
* Comcast Corporation (NASDAQ:CMCSA) is planning to sell NBC’s 15 percent stake in A&E to partners The Walt Disney Company (NYSE:DIS) and The Hearst Corporation, according to a report in The New York Post.
* Vornado Realty Trust (NYSE:VNO) said it agreed to buy a piece of prime retail space on New York’s Fifth Avenue for about $707 million.
* U.S. truck maker Navistar International Corp (NYSE:NAV) has announced new truck engine technology that will help it comply with federal emissions regulations.
* Japanese shoe store operator ABC-MART, INC. (TYO:2670) will acquire work and outdoor footwear company LaCrosse Footwear, Inc. (NASDAQ:BOOT), for $137 million.
* Software company Informatica Corporation (NASDAQ:INFA) said its second-quarter earnings and revenue will miss its earlier expectations, and now foresees posting adjusted earnings of 27 cents to 28 cents a share, on revenue of between $188 million to $190 million.
* Toy-maker LeapFrog Enterprises, Inc. (NYSE:LF) said chief financial officer, Mark Etnyre, will resign.
* British insurer Aviva Plc (NYSE:AV) (LON:AV) has raised 318 million pounds ($492 million) from the sale of its 21 percent stake in Dutch insurer Delta Lloyd NV (AMS:DL). Societe Generale has upgraded the insurer to “hold” from “sell.”
* European plane maker Airbus, a subsidiary of EADS NV (EPA:EAD), said it had received 230 net aircraft orders in the year to June, and managed to deliver 279 planes in the same period.
* French car-maker Peugeot SA (EPA:UG) reported a 13 per cent drop in first-half unit sales due to a demand slump in European markets.
* Retail stocks were the major losers in London trading, with Marks and Spencer Group Plc (LON:MKS), Kingfisher plc (LON:KGF), Burberry Group plc (LON:BRBY) and Next plc (LON:NXT) all trading deep in the red.
* Air France – KLM (EPA:AF) reported a 4.6 percent increase in passenger traffic in the year to June, boosted by strong performance in Asia and North America.
* HTC Corp (TPE:2498), Asia’s second-largest smart phone maker, posted a 57.8 percent decline in second quarter net profit, missing forecasts, amid stiff competition from Apple Inc. (NASDAQ:AAPL) and Samsung Electronics Co.
* Shareholders of Chinese energy distributor ENN Energy Holdings Ltd (HKG:2688) have approved its proposed $2.15 billion acquisition of rival China Gas Holdings Ltd. (HKG:0384), which it will jointly make with China Petroleum & Chemical Corp. (NYSE:SNP) (HKG:0386).
* Asia’s largest apparel retailer Fast Retailing Co Ltd (TYO:9983) posted a 22 percent rise in quarterly profit to 14.7 billion yen ($183.98 million), from 11.7 billion yen in the same period last year, but cut its full-year forecast below market expectations amid a decline in domestic clothing sales.
* China Vanke Co., Ltd. (SHE:000002) and Sany Heavy Industry Co., LTD (SHA:600031) ended significantly higher after Citigroup Inc. said that the Chinese rate cut will boost capital-intensive companies.
* Japanese shopping mall operator Parco Co., Ltd. (TYO:8251) jumped 2.5 percent in Tokyo after J Front Retailing Co., Ltd. (TYO:3086) said it will pay 42.4 billion yen ($531.36 million) to buy a majority stake in Parco.
Economic Calendar for Friday, July 06, 2012:
08:30 A.M. ET: Employment Situation (June)
10:30 A.M. ET: EIA Natural Gas Report (Week ending Friday, June 29, 2012)