Morning Market Update: FL, SJM, KIRK, HIBB, CMRG, ANN, BKU, ORCL, GRPN

Market Levels

US: Dow Futures: 13248.84 (-0.01%), S&P 500 Futures: 1415.48 (0.00%), NASDAQ Futures: 3064.87 (0.08%)
Europe: CAC: 3488.05 (0.13%), DAX: 7029.59 (0.47%), FTSE: 5843.60 (0.16%).
Asia-Pacific: Australia: 4370.10 (0.92%), China: 2114.89 (0.13%), Hong Kong: 20116.07 (0.76%), India: 5366.30 (0.06%), Japan: 9162.52 (0.76%).

Metals: Gold: 1620.80 (0.10%), Silver: 28.08 (0.04%), Copper: 3.41 (1.05%)
Energy: Crude Oil: 95.53 (-0.07%), Natural Gas: 2.72 (-0.22%)
Commodities: Corn: 8.08 (0.53%), Soya Bean: 16.36 (-0.72%), Wheat: 8.91 (2.05%)
Currency: EUR/USD: 1.2348 (-0.06%), GBP/USD: 1.5716 (-0.11%), USD/JPY: 79.4400 (0.11%)
10 year US Treasury: 1.823% (-0.014)

Financial and Economic News Update

U.S. market flat: U.S. markets are trading largely unchanged on Friday as investors await the consumer sentiment report and a gauge of leading economic indicators. The Dow Jones industrial average, the S&P 500 and the NASDAQ were trading close the flatline.

European markets trading in the green: European markets are higher in trade today, with the German DAX (INDEXDB:DAX) trading 0.5 percent higher at 7029.59, the FTSE 100 (INDEXFTSE:UKX) up 0.2 percent at 5843.60, and the CAC 40 (INDEXEURO:PX1) gained 0.1 percent to 3488.05. The euro zone blue-chip ESTX 50 PR.EUR (INDEXSTOXX:SX5E) (Euro Stoxx 50) was trading 0.5 percent higher.

Asian markets end higher: Asian markets closed higher on Friday, with Japan’s NIKKEI 225 (INDEXNIKKEI:NI225) closing 0.8 percent higher at 9,162.50 points. The HANG SENG INDEX (INDEXHANGSENG:HSI) closed at 20,116.1, down 0.1 percent this week, while the SSE Composite Index (SHA:000001) (Shanghai Composite Index) closed up 0.1 percent on the day. The S&P/ASX 200 (INDEXASX:XJO) index rose 0.9 percent to 4,370.1. The benchmark Indian 30-share BSE SENSITIVE (INDEXBOM:SENSEX) index closed up 0.1 percent.

Company News Update

U.S.

Footwear retailer Foot Locker, Inc. (NYSE:FL) reported second quarter earnings excluding items of 38 cents a share, 5 cents above the average analysts’ estimate. Revenue increased 7.21 percent to $1.37 billion, also topping estimates of $1.35 billion. Same-store sales during the period increased 9.8 percent, while gross margin rose to 31.3 percent from 30.4 percent.
The J.M. Smucker Company (NYSE:SJM) reported first quarter earnings excluding certain items of $1.17 per share, 17 cents above estimates. Revenue rose to $1.37 billion from $1.19 billion a year earlier, also topping Street expectations of $1.3 billion. The company also increased its quarterly dividend by 8 percent.
Home accessories and gifts retailer Kirkland’s, Inc. (NASDAQ:KIRK) reported a second-quarter net loss of $2.0 million, or 11 cents per share, compared with a net loss of $0.5 million, or 2 cents per share, for the same period last year. Second-quarter sales stood at $91 million, missing estimates of $94.4 million. The company also forecast lower than expected full-year earnings per shares.
Sporting-goods retailer Hibbett Sports, Inc. (NASDAQ:HIBB) reported second quarter profit of $7.9 million, or 30 cents a share, up from $5.9 million, or 21 cents a share, a year earlier. Sales increased 8 percent to $165.4 million, while same-store sales gained 4.8 percent. Analysts were expecting earnings of 28 cents a share on revenue of $169.7 million.
Casual Male Retail Group, Inc. (NASDAQ:CMRG) reported second-quarter net income of $1.2 million or 3 cents per share, down from $6.6 million or 14 cents per share a year ago. Total sales for the quarter came in at $100.5 million versus $100.4 million last year. Same store sales increased 2 percent from the year-ago quarter.
Ann Inc (NYSE:ANN) posted second-quarter profit of $30.7 million, or 63 cents per share, compared to $24.8 million, or 47 cents per share, a year earlier. Revenue rose 7 percent to $594.9 million. Analysts were looking for earnings of 51 cents per share, on revenue of $585.6 million. The parent of Ann Taylor and LOFT stores provided a better than expected full-year sales outlook.
ScanSource, Inc. (NASDAQ:SCSC) reported fourth quarter earnings excluding items of 68 cents per share that beat the consensus estimate of 62 cents per share. Revenue rose 2.7 percent to $754.5 million, trailing estimates of $779.6 million. The technology products distributor forecast first-quarter profit below analysts’ estimates
Software giant Oracle Corporation (NASDAQ:ORCL) agreed to pay $2 million to settle U.S. Securities and Exchange Commission charges that its Indian subsidiary violated foreign anti-bribery laws by secretly paying phony vendors in that country.
New York-based specialty finance company Ares Capital Corporation (NASDAQ:ARCC) is planning to make a public offering of 19 million common shares, the net proceeds from which will be partly used to repay outstanding debt.
A number of private-equity firms are interested in buying Florida bank, BankUnited (NYSE:BKU), the New York Post reported. .
The board of Houston-based Plains All American Pipeline, L.P. (NYSE:PAA) has approved a two-for-one split of its common units.
Electricity transmission company ITC Holdings Corp. (NYSE:ITC) has raised its quarterly dividend by 7 percent to 37.75 cents a share from 35.25 cents a share.
Groupon Inc (NASDAQ:GRPN) was 2.8 percent in pre-market trading after analysts at Evercore Partners downgraded the stock to “underweight” from “equal weight.”
Drug maker Vivus, Inc. (NASDAQ:VVUS) was lowered by analysts at Jefferies to “underperform” from “hold,” citing concerns about growing competition from generic companies.

Europe

London-listed platinum miner Lonmin Plc (LON:LMI) warned that it was likely to miss its full year targets after violent clashes erupted between unions at its Marikana platinum-mining complex, in South Africa, that saw 35 people dead due to police firing.
Banking stocks in Europe were trading higher amid market speculation that the European Union will soon provide a 100 billion-euro bailout to Spain’s most debt-stricken banks. HSBC Holdings plc (ADR) (NYSE:HBC) (LON:HSBA) (HKG:0005) gained 0.5 percent, Royal Bank of Scotland Group plc (ADR) (NYSE:RBS) (LON:RBS) rose 1.4 percent and Barclays PLC (ADR) (NYSE:BCS) (LON:BARC) jumped 2.8 percent. In Germany, Commerzbank AG (ETR:CBK) (FRA:CBK) and Deutsche Bank AG (USA) (NYSE:DB) (ETR:DBK) (FRA:DBK) soared more than 2 percent. BNP Paribas SA (EPA:BNP) and Societe Generale SA (EPA:GLE) were also trading significantly higher in Paris.
Europe’s biggest airline Air France – KLM (EPA:AF) rallied 4 percent in Paris after the carrier’s biggest pilot union voted to back a restructuring plan that will increase their workload by 20 per cent.
Amsterdam-based publisher Telegraaf Media Groep NV (AMS:TMG) plunged the most in a year after the publisher of the largest Dutch newspaper abandoned its full-year profit forecast, due to falling advertising revenue and weak economic outlook in the Netherlands.
Oil and gas exploration company Ophir Energy Plc (LON:OPHR) gained 3.7 percent in London trading after analysts at Goldman Sachs Group Inc. raised the stock to “buy” from “neutral.”

Asia-Pacific

Taiwanese technology manufacturing giant Hon Hai Precision Industry Co., Ltd. (TPE:2317) is looking to raise its stake in struggling Japanese TV maker Sharp Corporation (TYO:6753) to 20 percent, from a 9.9 percent agreed in March, the Nikkei business daily reported.
Australia and New Zealand Banking Group (ASX:ANZ), Australia’s third-largest bank by market value, reported a better than expected 10 per cent rise in net profit to $4.4 billion in the first nine months of its fiscal year, as it cut costs and earned more from overseas units.
Chinese state-controlled Aluminum Corp. of China Limited (ADR) (NYSE:ACH) (HKG:2600) (SHA:601600) swung to a first-half net loss of 3.25 billion yuan ($512 million), compared with a net profit of 413 million yuan a year earlier. Revenue increased 9 percent to 71.70 billion yuan from 65.97 billion yuan a year earlier.
QBE Insurance Group Limited (ASX:QBE), Australia’s largest insurance company, posted first-half net profit of $760 million, lower than consensus estimate of $795 million. The company reduced its full-year insurance profit margin forecast, and announced a dividend of 40 cents a share that was also below analysts’ expectations.
Cigarette manufacturing company Japan Tobacco Inc (TYO:2914) ended 3.7 percent lower after the Chinese health ministry said it was planning to introduce a ban on cigarette advertising and promotions.
Australian oil and gas producer Santos Limited (ASX:STO) reported a 20 percent jump in first half underlying profit to 283 million Australian dollars, beating the average analysts’ estimate of 272 million Australian dollars. The country’s third-biggest oil and gas producer maintained its full-year output guidance, and declared a dividend of 15 cent per share, unchanged from last year.
· Dutch brewer, Heineken N.V. (AMS:HEIA) is in talks with Fraser & Neave Ltd. about raising its offer for the rest of Singapore-based Asia Pacific Breweries Ltd. (SGX:A46) from 50 Singapore dollars a share to about 53 Singapore dollars per share.
Chinese train maker CSR Corp Ltd (HKG:1766) (SHA:601766) jumped 5.8 percent in Hong Kong trading after winning contracts worth 12.7 billion yuan ($2 billion).
Japanese technology manufacturing giant Toshiba Corp (TYO:6502) has developed a motor magnet that avoids using China-sourced rare earth mineral dysprosium, the Nikkei reported today.
Yunnan Copper Co.,Ltd (SHE:000878), China’s fourth-biggest producer of the metal, ended 0.7 percent lower after reporting a 53 percent drop in first-half net income from a year earlier.