Morning Market News
Stocks that are expected to trade actively in U.S. markets on Monday include: Caterpillar Inc. (NYSE:CAT), General Motors Company (NYSE:GM), Halliburton Company (NYSE:HAL), Apple Inc. (NASDAQ:AAPL), Power One Inc (NASDAQ:PWER), eBay Inc (NASDAQ:EBAY), Hasbro, Inc. (NASDAQ:HAS), Ameriprise Financial, Inc. (NYSE:AMP) and Elan Corporation, plc (ADR) (NYSE:ELN).
Market Levels
• US: Dow Futures: 14513.00 (0.30%), S&P 500 Futures: 1552.50 (0.32%), NASDAQ Futures: 2780.75 (0.45%)
• Europe: CAC: 3660.14 (0.22%), DAX: 7500.66 (0.54%), FTSE: 6302.57 (0.25%)
• Asia-Pacific: Australia: 4966.60 (0.70%), China: 2242.17 (-0.11%), Hong Kong: 22044.37 (0.14%), India: 5834.40 (0.89%), Japan: 13568.37 (1.86%).
• Metals: Gold: 1428.50 (2.36%), Silver: 23.46 (2.16%), Copper: 3.14 (-0.29%)
• Energy: Crude Oil: 89.13 (1.27%), Natural Gas: 4.33 (-1.75%)
• Commodities: Corn: 6.23 (0.40%), Soya Bean: 13.72 (-0.76%), Wheat: 7.02 (0.57%)
• Currency: EUR/USD: 1.3028 (-0.18%), GBP/USD: 1.5236 (0.02%), USD/JPY: 99.6100 (0.09%)
• 10 year US Treasury: 1.701% (-0.005)
Market and Economic News Update
U.S. stock-index futures up: U.S. stock-index futures are pointing to a higher open on Monday, as investors assess another batch of corporate earnings. National Association of Realtors’s existing home sales data will be released at 10 A.M. New York time. Analysts are expecting 4.83 million sales for March, compared to 4.98 million in February. Netflix, Inc. (NASDAQ:NFLX) and Texas Instruments Incorporated (NASDAQ:TXN) are due to report quarterly numbers after the close.
European markets higher: European markets are up in trade today, led by the Italian FTSE MIB Index, after President Giorgio Napolitano was elected for a second term over the weekend. The German DAX (INDEXDB:DAX) is up 0.5 percent at 7500.66 points. The FTSE 100 (INDEXFTSE:UKX) added 0.3 percent to 6302.57 and the CAC 40 (INDEXEURO:PX1) gained 0.2 percent to 3660.14 points. The euro zone blue-chip ESTX 50 PR.EUR (INDEXSTOXX:SX5E) (Euro Stoxx 50) was up 0.6 percent.
Asian markets end mostly higher: Asian markets closed higher on Monday with Japan’s Nikkei hitting its highest level in almost five years, amid continued weakness in the yen. Japanese markets were also relieved after the G20 meeting refrained from criticizing the country’s stimulus program, adding to investor optimism that Bank of Japan will move ahead with its currency depreciation plan. The NIKKEI 225 (INDEXNIKKEI:NI225) rallied close to 2 percent, while the S&P/ASX 200 (INDEXASX:XJO) index finished 0.7 percent higher. The HANG SENG INDEX (INDEXHANGSENG:HIS) was up 0.1 percent and the SSE Composite Index (SHA:000001) (Shanghai Composite Index) closed 0.1 percent lower, after hitting a three-week high on Friday.
Stocks to Watch
Caterpillar Inc. (NYSE:CAT)
Caterpillar Inc. (NYSE:CAT) reported first quarter earnings of $1.31 per share, nine cents below the consensus estimate, on revenue of $13.20 billion that also trailed Street expectations. The company cut its full year outlook, and now expects to report a profit of $7 per share on sales of $57 billion to $61 billion. “While 2013 will be a challenging year, we are confident about the long-term,” chief executive Doug Oberhelman said. Caterpillar Inc. (NYSE:CAT) shares were up close to a percent in pre-market.
General Motors Company (NYSE:GM)
General Motors Company (NYSE:GM) is planning to open four new plants and hire 6,000 workers in China over the next three years, Bob Socia, the head of GM China said at the Shanghai auto show on Saturday. The automaker and its joint venture partners in the country will spend $11 billion in capital expenditure by 2016 to bring its production capacity to five million vehicles a year. Last year, General Motors Company (NYSE:GM) sold 2.8 million vehicles in China, more than the U.S. for the third year straight year.
Halliburton Company (NYSE:HAL)
Oilfield services company Halliburton Company (NYSE:HAL) posted first quarter earnings excluding items of 67 cents per share, 10 cents above estimates. Halliburton Company (NYSE:HAL)’s increase in international business offset weakness in the North American market. Halliburton Company (NYSE:HAL) said it is in talks to settle litigation relating to the 2010 Macondo well explosion and oil spill in the Gulf of Mexico. Shares jumped in early trade.
Apple Inc. (NASDAQ:AAPL)
Apple Inc. (NASDAQ:AAPL)’s top management is secretly searching for a replacement for CEO Tim Cook, according to a report published in Forbes. According to the report, some executives inside Apple Inc. (NASDAQ:AAPL) want to replace Cook, amid increased concerns about the flagging performance of the Cupertino-based tech giant. Apple Inc. (NASDAQ:AAPL) has lost about half its market value since October 2011, when Cook replaced the Steve Jobs as chief executive.
Power One Inc (NASDAQ:PWER)
Swedish engineering major ABB Ltd (ADR) (NYSE:ABB) has agreed to acquire California-based renewable energy company Power One Inc (NASDAQ:PWER) for about $1 billion, in order to increase its market share in the global solar power market. ABB Ltd (ADR) (NYSE:ABB) is would pay Power One Inc (NASDAQ:PWER) stockholders $6.35 a share in cash, 57 percent above its closing share price on Friday. Power One Inc (NASDAQ:PWER) is a leading maker of solar photovoltaic inverters, and last year raked in sales of around $1 billion.
eBay Inc (NASDAQ:EBAY)
The U.S. Senate is likely to vote today on ending debate over a bill allowing states to tax purchases that are made online. Senate majority leader, Harry Reid, is expected to bring the bill to the floor on Monday night. Online businesses led by eBay Inc (NASDAQ:EBAY) are fighting against the bill, arguing that it would hurt small businesses.
Hasbro, Inc. (NASDAQ:HAS)
Toymaker Hasbro, Inc. (NASDAQ:HAS) reported first quarter earnings excluding certain items of 5 cents per share, one cent above estimates, on revenue of $663.7 million, also topping expectations for $639 million. Operating margin dropped to 1.6 percent from 2.4 percent. International segment revenue was flat at $289.8 million, while revenue from U.S. and Canada rose 4 percent.
The Boeing Company (NYSE:BA)
Japanese aviation regulators said they will delay making a final decision on the resumption of the Boeing 787, and will instead hold public hearings this week regarding the battery burning incidents on two Dreamliners operated by Japan Airlines Co. and All Nippon Airways. The two Japanese carriers are the biggest customers of the aircraft and are seeking compensation from The Boeing Company (NYSE:BA) for losses due to the grounding.
Ameriprise Financial, Inc. (NYSE:AMP)
Ameriprise Financial, Inc. (NYSE:AMP) is preparing an 800 million pound ($1.22 billion) bid for the asset-management unit of Lloyds Banking Group PLC (ADR) (NYSE:LYG) (LON:LLOY), The Sunday Times reported. Ameriprise Financial, Inc. (NYSE:AMP) and Lloyds, both declined to comment on the report. Lloyds has hired investment banker at Deutsche Bank AG for a possible sale of Scottish Widows Investment Partnership, which has around 150 billion pounds of asset under management. Shares of Ameriprise Financial, Inc. (NYSE:AMP) are inactive pre-market.
Elan Corporation, plc (ADR) (NYSE:ELN)
Irish drug maker Elan Corporation, plc (ADR) (NYSE:ELN) has rejected the $11.25 a share takeover offer from Royalty Pharma, saying that the bid substantially undervalued the company. Royalty had last week lowered its bid to $11.25 a share from an earlier $12 offer, after Elan Corporation, plc (ADR) (NYSE:ELN) completed a $1 billion share buyback at $11.25 a share. Elan Corporation, plc (ADR) (NYSE:ELN) shares closed Friday at $11.95 on the New York Stock Exchange, where it maintains a primary listing, and were up in pre-market trading.
Economic Calendar for Monday, April 22, 2013:
08:30 A.M. ET: Chicago Fed National Activity Index (March)
10:00 A.M. ET: Existing Home Sales (MoM) (March)
10:00 A.M. ET: Existing Home Sales Change (MoM) (March)
11:30 A.M. ET: 3-Month Bill Auction
11:30 A.M. ET: 6-Month Bill Auction
