Morning News: WMT, CP, SHLD, BAC, A, HBC and AV in Focus

Every morning we put out a news report with the latest news in global stock markets, company news, and global economic news.

Morning Market Update

Market Levels

US: Dow Futures: 12584.00 (0.08%), S&P 500 Futures: 1323.40 (0.08%), NASDAQ Futures: 2557.00 (-0.02%)
Europe: CAC: 3032.69 (-0.53%), DAX: 6358.25 (-0.41%), FTSE: 5353.97 (-0.96%).

Asia-Pacific: Australia: 4157.40 (-0.19%), China: 2378.89 (1.37%), Hong Kong: 19200.93 (-0.31%), India: 4870.20 (0.25%), Japan: 8876.59 (0.85%).
Metals: Gold: 1554.80 (1.18%), Silver: 27.62 (1.54%), Copper: 3.48 (0.20%)
Energy: Crude Oil: 93.54 (0.79%), Natural Gas: 2.71 (0.78%)
Commodities: Corn: 6.19 (3.60%), Soya Bean: 13.08 (-0.38%), Wheat: 6.40 (4.85%)
Currency: EUR/USD: 1.2714 (-0.02%), GBP/USD: 1.5821 (-0.56%), USD/JPY: 80.1800 (-0.19%)
10 year US Treasury: 1.764% (0.002)

Financial and Economic News Update

U.S. stock-index futures flat: U.S. stock index futures are pointing to a flat open on Thursday amid a report that showed more Americans than expected filed applications for unemployment benefits last week. The Dow Jones industrial average, the S&P 500 and the NASDAQ futures were all trading little changed.

U.S. jobless claims unchanged: Labor Department figures showed jobless claims were unchanged at 370,000 in the week ended May 12, a sign that the labor market is making little progress after a recent slowdown in jobs growth. Economists were expecting a drop in claims to 365,000.

European markets fall: European markets are down in trade today, with the German DAX (INDEXDB:DAX) trading 0.4 percent lower at 6358.25, the FTSE 100 (INDEXFTSE:UKX) down 1 percent at 5353.97, and the CAC 40 (INDEXEURO:PX1) losing 0.5 percent to 3032.69. The euro zone blue-chip ESTX 50 PR.EUR (INDEXSTOXX:SX5E) (Euro Stoxx 50) was trading 0.95 percent lower.

Asian markets end mixed: Asian markets closed mixed on Thursday, with Japan’s NIKKEI 225 (INDEXNIKKEI:NI225) up 0.9 percent to 8,876.59 yen. The HANG SENG INDEX (INDEXHANGSENG:HSI) closed 0.4 percent lower at 19,200.9, while the SSE Composite Index (SHA:000001) (Shanghai Composite Index) ended up 1.4 percent at 2,378.9 points. The S&P/ASX 200 (INDEXASX:XJO) index fell 0.2 percent to 4,157.4. The benchmark Indian 30-share BSE SENSITIVE (INDEXBOM:SENSEX) index rose 0.25 percent to 16,070.48 points.

Company News Update

U.S.

Wal-Mart Stores, Inc. (NYSE:WMT), the world’s largest retailer, posted better than expected first quarter profit and revenue as lower prices continued to attract bargain-hungry customers.
· Sears Holding Corporation (NASDAQ:SHLD) posted first quarter adjusted loss of 31 cents a share on revenue of $9.27 billion, better than street expectations of a loss of 67 cents a share on revenue of $9.26 billion.
Royal Bank of Canada (USA) (NYSE:RY) and Credit Suisse Group AG (NYSE:CS) have put in bids to buy the non-U.S. wealth management business of Bank of America Corp (NYSE:BAC), a deal that analysts say could be worth about $2 billion.
Agilent Technologies Inc. (NYSE:A), the maker of scientific instruments, agreed to acquire the Danish cancer diagnostics company Dako for $2.2 billion, to expand its life-science business.
Discount retailer Dollar Tree, Inc. (NASDAQ:DLTR) posted first quarter profit of $116.1 million or $1.00 a share, topping expectations, but provided fiscal year forecast that was below consensus estimates.
Biotechnology company Human Genome Sciences (NASDAQ:HGSI) has rejected GlaxoSmithkline plc (NYSE:GSK)’s $2.6 billion hostile takeover bid as inadequate, and has adopted a shareholder right’s plan.
Drug delivery system specialist Alkermes Plc (NASDAQ:ALKS) reported a smaller than expected fiscal fourth-quarter loss, and provided a fiscal 2013 outlook that topped consensus estimates.
Fred Green, Chief Executive Officer of Canadian Pacific Railway Limited (NYSE:CP) (TSE:CNR) has resigned, in what is widely seen as a victory for activist shareholder Bill Ackman, who has been pushing for his own set of nominees to join the board.
Stern Agee has upgraded computer maker Dell Inc. (NASDAQ:DELL)‘s stock to “neutral” from “underperform” citing limited downside.

Europe

HSBC Holdings plc (ADR) (NYSE:HBC), Europe’s largest bank, said that it was on track to reach its 2013 profitability goals, after cutting costs by $2 billion in the first year of the three year turnaround plan.
Aviva Plc (ADR) (NYSE:AV), U.K.’s second biggest insurer by market value, recorded a 7 percent drop in first quarter sales of life insurance and pension plans to 6.52 billion pounds ($10.4 billion), that trailed some analysts’ estimates.
Clothing retailer French Connection Group (LON:FCCN) said it is unlikely to meet its full-year profit target after sales in the first three months of the financial year fell 9.5 percent.
Spanish newspaper El Mundo reported that customers of Bankia SA (BKIA) have withdrawn close to 1 billion euros since the day the government said it will take over the bank.
SBM Offshore N.V. (AMS:SBMO), the world’s biggest supplier of floating oil and gas platforms, was cut to “underweight” from “equal weight” at Barclays.

Asia-Pacific

Japanese consumer credit company Credit Saison Co., Ltd. (TYO:8253) reported net profit for the year ended March 31, that topped market expectations, and forecast a full year net income of 29 billion yen ($361 million).
Electronics giant Toshiba Corp (TYO:6502) has halted domestic production of LCD televisions amid falling prices and fierce global competition. Toshiba has already shifted a bulk of its TV production to other countries due to the yen’s strength.
Inpex Corp (TYO:1605), Japan’s top oil explorer by market value, will sell a 0.735 percent stake in the Ichthys liquefied natural gas project in Australia to Chubu Electric Power Company,Incorporate (TYO:9502).
Chinese online game and messaging company Tencent Holdings Ltd (HKG:0700) posted a record 2.8 percent rise in first quarter net profit to 2.95 billion yuan, while revenue jumped 52 percent to 9.65 billion yuan, beating analysts’ estimates.
Commonwealth Bank of Australia (ASX:CBA), the country’s top lender by market value, posted below forecast results for the fiscal third quarter, but is on track for a bumper full year profit of just over 7 billion Australian dollars ($7 billion).