Every morning we put out a report with the latest on global markets, companies, and economic data. In focus today; stocks in focus today include; KCG, GM, BA, BBY, HCA, AES, WMT, UG, MKS, ABE
At the end of October, the value investor Mohnish Pabrai gave a presentation and took part in a Q&A session at Boston College and Harvard Business School on the Uber Cannibal Investor Framework, which he has developed over the past decade. Uber Cannibals are the businesses “eating themselves by buying back their stock,” the value Read More
Morning Market Update
- US: Dow Futures: 13066.00 (0.08%), S&P 500 Futures: 1391.80 (0.20%), NASDAQ Futures: 2682.50 (0.43%)
- Europe: CAC: 3402.60 (0.84%), DAX: 6909.08 (0.69%), FTSE: 5809.71 (0.39%)
- Asia-Pacific: Australia: 4272.60 (1.21%), China: 2154.92 (1.03%), Hong Kong: 19998.72 (1.66%), India: 5282.55 (1.28%), Japan: 8726.29 (1.96%).
- Metals: Gold: 1611.00 (0.11%), Silver: 27.66 (-0.53%), Copper: 3.35 (-0.58%)
- Energy: Crude Oil: 91.02 (-0.42%), Natural Gas: 2.85 (-0.97%)
- Commodities: Corn: 8.00 (1.48%), Soya Bean: 15.94 (0.79%), Wheat: 8.99 (3.05%)
- Currency: EUR/USD: 1.2385 (-0.02%), GBP/USD: 1.5567 (-0.47%), USD/JPY: 78.3000 (-0.20%)
- 10 year US Treasury: 1.546% (-0.015)
Financial and Economic News Update
U.S. stock-index futures trading higher: U.S. stock index futures are pointing to a higher open on Monday amid investor optimism that the European Central Bank will take steps to address the region’s debt crisis. The Dow Jones industrial average, S&P 500 and NASDAQ futures were all trading in the green.
European markets trading higher: European markets are trading higher on Monday with the German DAX (INDEXDB:DAX) up 0.7 percent at 6909.08, the FTSE 100 (INDEXFTSE:UKX) gained 0.4 percent to 5809.71, and the CAC 40 (INDEXEURO:PX1) rallied 0.8 percent to 3402.60. The euro zone blue-chip ESTX 50 PR.EUR (INDEXSTOXX:SX5E) (Euro Stoxx 50) was jumped 0.9 percent.
Asian markets end higher: Asian markets closed higher on Monday with Japan’s NIKKEI 225 (INDEXNIKKEI:NI225) closing at 8,726.29. The HANG SENG INDEX (INDEXHANGSENG:HSI) ended up 1.7 percent at 19,998.7, while the SSE Composite Index (SHA:000001) closed up 1 percent at 2,154.9. The S&P/ASX 200 (INDEXASX:XJO) index rose 51.1 points to 4,272.6. The benchmark Indian 30-share BSE SENSITIVE (INDEXBOM:SENSEX) index rose 1.3 percent.
Stocks in Focus
Knight Capital Group Inc. (NYSE:KCG) has entered into a $400 million financing deal with a group of investors including TD Ameritrade Holding Corp. (NYSE:AMTD), The Blackstone Group L.P. (NYSE:BX), Stifel Financial Corp. (NYSE:SF), Jefferies Group, Inc. (NYSE:JEF) and Stephens Inc.
Citigroup Inc. (NYSE:C) will sell its Diners Club card issuing businesses in the U. K. and Ireland to private investor group Affiniture Cards Ltd for an undisclosed sum.
The Boeing Company (NYSE:BA) said Chinese carrier Xiamen Airlines, a unit of China Southern Airlines Limited (ADR) (NYSE:ZNH) (HKG:1055), has agreed to buy 40 next-generation 737-800s at a combined list price of $3.36 billion.
Tyson Foods, Inc. (NYSE:TSN) reported fiscal third quarter earnings excluding items of 50 cents per share, four cents short of estimates, with revenue for the quarter coming in at $8.31 billion, also missing estimates. The seller of beef, pork and chicken also cut its full year sales outlook due to rising input costs.
Cognizant Technology Solutions Corp (NASDAQ:CTSH) posted second quarter earnings excluding items of 88 cents per share, on revenue of $1.8 billion. Analysts were expecting earnings excluding items of 80 cents per share on $1.79 billion in revenue. The technology services provider also lifted its full-year adjusted profit forecast.
Best Buy Co., Inc. (NYSE:BBY) jumped more than 20 percent in pre-market trading after founder and former chairman, Richard Schulze, offered to buy the electronics retailer for between $24 and $26 a share.
Hospital operator HCA Holdings Inc (NYSE:HCA) reported second quarter earnings excluding one-time items of 85 cents per share that beat the average analysts’ estimate of 78 cents per share. Revenue increased 12 percent to $8.11 billion, but missed estimates of $8.83 billion. The company reaffirmed its full year earnings forecast.
The AES Corporation (NYSE:AES) posted a 20 percent fall in second quarter profit to $140 million, or 18 cents a share, compared with a year-ago profit of $174 million, or 22 cents a share. Revenue declined 5.5 percent to $4.19 billion.
Health Care REIT, Inc. (NYSE:HCN) reported second quarter earnings per share of 25 cents, on revenue of $453.1 million. Analysts were expecting earnings of 32 cents on $443 million in revenue. Funds from operations, excluding acquisition-related costs, stock compensation and other items, fell to 89 cents, from 90 cents a year ago. Analysts were looking for a normalized FFO of 88 cents.
Food maker Kraft Foods Inc (NASDAQ:KFT) was trading 1.1 percent higher in New York pre-market trading after analysts at Jefferies upgraded the stock to “buy” from “hold,” and raised its price target to $48 from $41.
Wal-Mart Stores, Inc. (NYSE:WMT) was lifted to “buy” from “hold” by analysts at Stifel Nicolaus, who said that second quarter sales at the world’s largest retailer are expected to be strong.
- Automobile stocks gained in France and Germany, with Peugeot SA (EPA:UG) and Renault SA (EPA:RNO) trading close to 3 percent higher in Paris, while Bayerische Motoren Werke AG (ETR:BMW) (FRA:BMW), Daimler AG (ETR:DAI) (FRA:DAI) and Volkswagen AG (ETR:VOW) (FRA:VOW) were up more than 2 percent in German trading.
- Hong King-listed Italian luxury goods maker, Prada S.p.A (HKG:1913), reported a better than expected 37 percent jump in first-half sales, as strong growth in Asia offset slowdown in Europe.
- British retailer Marks and Spencer Group Plc (LON:MKS) was trading 2.6 percent higher, after the Sunday Telegraph reported that private equity firms and banks are considering a $6 billion offer for the 128-year-old store chain.
- Taiwan Semiconductor Mfg. Co. Ltd. (ADR) (NYSE:TSM) (TPE:2330), the world’s biggest contract chipmaker, has agreed to invest 1.11 billion euros ($1.4 billion) in ASML Holding N.V. (ADR) (NASDAQ:ASML) (AMS:ASML), Europe’s largest chip-equipment maker. Last month, Intel Corporation (NASDAQ:INTC) had agreed to invest as much as $4.1 billion in the Dutch company.
- Barcelona-based toll road operator Abertis Infraestructuras S.A. (MCE:ABE), and U.S. fund Brookfield Infrastructure will buy a 60 percent stake in Obrascon Huarte Lain SA (MCE:OHL)’s Brazilian unit.
- Dutch postal company PostNL NV (AMS:PNL) slumped 4.7 percent after reporting second-quarter earnings that missed analyst estimates, and cutting its full-year sales forecast.
- TeleCity Group Plc (LON:TCY), the London-based data centre operator, reported first half adjusted earnings of 15.8 pence per share that beat analysts’ estimates. The British group also agreed to buy Finnish company Tenue for 3.7 million pounds ($5.8 million).
- British utility Centrica PLC (LON:CAN) fell 1.2 percent after analysts at Deutsche Bank downgraded the stock to “hold” from “buy.”
- Technology research company QinetiQ Group plc (LON:QQ) slumped 2.9 percent in London trading after the stock was cut to “sell” from “neutral” at Goldman Sachs Group Inc.
- Toyota Motor Corporation (ADR) (NYSE:TM) (TYO:7203) closed at a four-week high after the world’s top-selling carmaker posted first quarter net profit that beat estimates and raised its calendar year global sales forecast.
- Fortescue Metals Group Limited (ASX:FMG), Australia’s third-largest iron ore producer has secured 1.44 billion Australian dollars ($1.5 billion) in loans and credit for the expansion of its iron ore operations in Pilbara, Western Australia, according to the Sydney Morning Herald.
- Taiwanese technology manufacturing giant Hon Hai Precision Industry Co., Ltd. (TPE:2317) has reached an agreement to renegotiate its investment in cash-strapped Japanese consumer-electronics maker Sharp Corporation (TYO:6753), following the large drop in the latter’s share price since the deal was drawn up in March, according to a report in the China Post.
- Daiwa Securities Group Inc. (TYO:8601), Japan’s second-largest brokerage, ended 2.2 percent higher in Tokyo trading after reporting a quarterly net profit of 2.68 billion yen ($34.1 million) that beat estimates for a 1.4 billion yen profit.
- Japanese truck maker Isuzu Motors Limited (TYO:7202) said first quarter net profit more than doubled to 21.62 billion yen ($276.5 million), from 8.74 billion yen a year earlier, amid strong domestic demand. Separately, the Nikkei business daily reported that the company is planning to end its joint venture with General Motors Company (NYSE:GM) in Poland.
- Hong Kong-listed sportswear company, Anta Sports Products (HKG:2020) jumped the most in more than three years after reporting first-half earnings of 770 million yuan that easily beat estimates of 717 million yuan.
- Australian gold mining company Integra Mining Ltd. (ASX:IGR) has agreed to be acquired by Perth-based rival, Silver Lake Resources Limited. (ASX:SLR), in an all-scrip deal worth 426 million Australian dollars ($450 million). As part of the deal, Silver Lake will offer one new share for every 6.28 Integra shares, or 45.2 cents a share.
- Japan’s Asahi Glass Co Ltd (TYO:5201) was raised to “buy” from “neutral” by analysts at Nomura Holdings Inc., citing better than expected profit outlook.
Economic Calendar for Monday, August 06, 2012:
09:00 A.M. ET: Federal Reserve Chairman Ben Bernanke speaks.
11:00 A.M. ET: 4-Week Bill Announcement
11:30 A.M. ET: 3-Month Bill Auction
11:30 A.M. ET: 6-Month Bill Auction
03:00 P.M. ET: Treasury STRIPS