Morning Market Update
Stocks that are expected to trade actively in U.S. markets on Thursday include: Exxon Mobil Corporation (NYSE:XOM), Time Warner Cable Inc (NYSE:TWC), The Procter & Gamble Company (NYSE:PG), CBS Corporation (NYSE:CBS), Whole Foods Market, Inc. (NASDAQ:WFM), The Boeing Company (NYSE:BA), Yelp Inc (NYSE:YELP), OpenTable Inc (NASDAQ:OPEN), Shutterfly, Inc. (NASDAQ:SFLY).
Market Levels:
US: Dow Futures: 15550.00 (0.76%), S&P 500 Futures: 1692.80 (0.73%), NASDAQ Futures: 3107.00 (0.78%)
Europe: CAC: 4020.91 (0.70%), DAX: 8392.49 (1.39%), FTSE: 6645.11 (0.36%)
Asia-Pacific: Australia: 5061.50 (0.19%), China: 2029.07 (1.74%), Hong Kong: 22088.79 (0.93%), Japan: 14005.77 (2.41%).
Metals: Gold: 1324.50 (0.88%), Silver: 19.82 (0.98%), Copper: 3.17 (1.54%)
Energy: Crude Oil: 107.03 (1.90%), Natural Gas: 3.42 (-0.61%)
Commodities: Corn: 4.80 (0.58%), Soya Bean: 12.09 (0.25%), Wheat: 6.63 (1.41%)
Currency: EUR/USD: 1.3234 (-0.51%), GBP/USD: 1.5209 (0.01%), USD/JPY: 98.7800 (0.92%)
10-year US Treasury: 2.622% (0.046)
Market and Economic News Update:
U.S. stock-index futures jump: U.S. stock-index futures are pointing to a sharply higher open on Thursday following better-than-expected jobless claims data. Weekly jobless claims fell 19,000 to a seasonally adjusted 326,000 last week, according to the Labor Department. Economists were expecting a reading of 345,000. Also on the economic front, the Commerce Department will release its June construction spending data and Institute for Supply Management releases July manufacturing index at 10 am Eastern Time.
European markets rise: European markets gained in trade as investors reacted to rate decisions from the European Central Bank and the Bank of England. Both central banks decided to keep benchmark interest rates unchanged at a record low of 0.5 percent. Among other news, the euro zone PMI rose to 50.3 in July, from 48.8 in June, marking the first growth in manufacturing activity in the region in two years . The CAC 40 (INDEXEURO:PX1) added 0.7 percent to 4020.91, while the DAX (INDEXDB:DAX) soared 1.4 percent to 8392.49. The FTSE 100 (INDEXFTSE:UKX) edged 0.4 percent higher to 6645.11 points. The euro zone blue-chip ESTX 50 PR.EUR (INDEXSTOXX:SX5E) (Euro Stoxx 50) was up 1 percent in recent trading.
Asian stocks rally; Nikkei up more than 2%: Asian markets soared in trade after China’s official manufacturing PMI unexpectedly rose to 50.3 last month, from 50.1 in June. The SSE Composite Index (SHA:000001) (Shanghai Composite Index) hit a one-week high to close above the key psychological level of 2000. The NIKKEI 225 (INDEXNIKKEI:NI225) jumped to its higest level in a month as the dollar-yen rose above the 98-handle. The S&P/ASX 200 (INDEXASX:XJO) index gave up gains made earlier in the session to end 0.2 percent higher.
Stocks in News:
Exxon Mobil Corporation (NYSE:XOM)
Exxon Mobil Corporation (NYSE:XOM)’s second-quarter profit fell 57 percent to $6.86 billion, or $1.55 a share, from $15.91 billion, or $3.41 a share, in the same period last year, as oil and gas output declined and earnings for its refining business dropped. Revenue fell to $106.5 billion, from $127.4 billion a year earlier. Analysts had projected earnings of $1.89 a share on revenue of $108 billion. Shares in Exxon tumbled 2 percent in pre-market trading.
Time Warner Cable Inc (NYSE:TWC)
The second largest U.S. cable operator reported better than expected second quarter earnings, helped by strong growth in the company’s business services revenue. Excluding certain items, earnings came in at $1.69 per share, beating estimates by five cents. Revenue edged 3 percent higher to $5.55 billion, compared to estimates of $5.58 billion. Time Warner Cable added 21,000 high-speed internet customers on a net basis during the period.
The Procter & Gamble Company (NYSE:PG)
The Procter & Gamble Company (NYSE:PG) posted earnings and revenue that beat Wall Street expectations, indicating the company is making progress under veteran Chief Executive Officer A.G. Lafley, who rejoined two months ago. Excluding items, earnings stood at 79 cents per share, 2 cents above the consensus estimate. Revenue rose to $20.7 billion from $20.21 billion in the year-ago period, also exceeding expectations for $20.55 billion. Shares moved higher in recent trading following the earnings announcement.
CBS Corporation (NYSE:CBS)
The broadcasting company’s second-quarter profit rose 11 percent amid higher rates from pay-TV operators. Earnings were 76 cents a share, 4 cents above the average analysts’ estimate, on revenue of $3.70 billion that also topped expectations for $3.51 billion. Advertising revenue grew 4.7 percent, while revenue from content licensing and distribution jumped 22 percent. Shares edged higher in pre-open trading.
Whole Foods Market, Inc. (NASDAQ:WFM)
The upscale grocery chain posted weaker than expected quarterly revenue, and lowered the top end of its annual same-store sales forecast, sending shares down in pre-market trading. Third quarter earnings came in at 38 cents a share, a penny above estimates, while revenue fell short of consensus at $3.06 billion, versus expectations for $3.09 billion. Meanwhile, the company now expects annual growth of as much as 7.3 percent, slightly below an earlier forecast.
The Boeing Company (NYSE:BA)
The Boeing Company (NYSE:BA) has secured a $2.04 billion contract to build 13 P-8A multi-mission maritime surveillance aircrafts for the U.S. Navy. The contract will run through April 2016, and include work on the 13 aircrafts and 13 mission equipment set, the Pentagon announced on Wednesday. Boeing shares closed Wednesday at $105.10, and were largely unchanged in recent trading.
Yelp Inc (NYSE:YELP)
Yelp Inc (NYSE:YELP) posted second quarter loss of a penny a share on revenue of $55 million, edging past expectations for a loss of 4 cents a share on sales of $53 million. Shares rallied in pre-market trading. In addition, the company forecast current quarter revenue of $58 million to $59 million, above analysts’ projections of $57.4 million.
OpenTable Inc (NASDAQ:OPEN)
The restaurant-reservation service website has acquired rival reservation management system Rezbook from Urbanspoon. Financial terms of the deal were not disclosed. OpenTable would add 2,000 more restaurants in North America by buying Rezbook, CEO Matt Roberts said in a statement. Shares edged higher in early-hours trading.
Shutterfly, Inc. (NASDAQ:SFLY)
The online photo-sharing service lost 29 cents per share for the second quarter, far narrower than the 54 cent projected by analysts, as a greater number of customers placed orders during Mother’s Day, Father’s Day, and graduations. Revenue jumped 35 percent to $133.5 million, easily topping Street estimates of $121.99 million. Shares were inactive in pre-market.
Economic Calendar for Thursday, August 01, 2013:
07:30 A.M. ET: Challenger Job Cuts (YoY) (July)
08:30 A.M. ET: Initial Jobless Claims (July 26)
08:30 A.M. ET: Continuing Jobless Claims (July 20)
08:58 A.M. ET: Markit Manufacturing PMI (July)
10:00 A.M. ET: ISM Manufacturing PMI (July)
10:00 A.M. ET: ISM Prices Paid (July)
10:00 A.M. ET: Construction Spending (MoM) (June)
10:30 A.M. ET: EIA Natural Gas Storage change (July 26)
04:30 P.M. ET: Fed Balance Sheet
04:30 P.M. ET: Money Supply
