Morning Update: EAD, COST, FDX, GRPN, CMI, BA,TRLG, BX, HD, GS, VOD

Morning Market Update

Every morning we put out a report with the latest news in global stock markets, company news, and global economic news. In focus for October 10th 2012:

Market Levels

US: Dow Futures: 13375.00 (-0.28%), S&P 500 Futures: 1435.40 (-0.03%), NASDAQ Futures: 2738.25 (0.16%)
Europe: CAC: 3375.29 (-0.22%), DAX: 7221.08 (-0.19%), FTSE: 5785.87 (-0.42%).
Asia-Pacific: Australia: 4490.70 (-0.32%), China: 2119.94 (0.22%), Hong Kong: 20919.60 (-0.08%), India: 5652.15 (-0.92%), Japan: 8596.23 (-2.02%).

Metals: Gold: 1768.80 (0.22%), Silver: 34.04 (0.15%), Copper: 3.72 (-0.05%)
Energy: Crude Oil: 92.45 (0.06%), Natural Gas: 3.48 (0.46%)
Commodities: Corn: 7.41 (-0.10%), Soya Bean: 15.43 (-0.08%), Wheat: 8.67 (0.49%)
Currency: EUR/USD: 1.2884 (-0.01%), GBP/USD: 1.6010 (0.04%), USD/JPY: 78.3500 (0.13%)
10 year US Treasury: 1.771% (0.044)

Financial and Economic News Update

U.S. stock-index futures trading mixed: U.S. stock-index futures are pointing to a mixed open on Wednesday as investors weighed earnings reports amid concern about sluggish global growth. Late Tuesday, aluminum producer Alcoa Inc. (NYSE:AA) cut its outlook for global demand of the metal. The Dow Jones industrial average, the S&P 500 and the NASDAQ are struggling to find direction.

European markets in the red: European markets are trading lower on Wednesday with the German DAX (INDEXDB:DAX) down 0.2 percent at 7221.08, the FTSE 100 (INDEXFTSE:UKX) losing 0.4 percent to 5785.87 and the CAC 40 (INDEXEURO:PX1) giving up 0.2 percent to 3375.29. The euro zone blue-chip ESTX 50 PR.EUR (INDEXSTOXX:SX5E) (Euro Stoxx 50) edged 0.3 percent lower.

Asian markets end mostly lower: Asian markets closed lower on Wednesday amid concerns about flagging global economic growth. The HANG SENG INDEX (INDEXHANGSENG:HIS) ended down 0.1 percent, while the SSE Composite Index (SHA:000001) (Shanghai Composite Index) rose 0.2 percent. Japan’s NIKKEI 225 (INDEXNIKKEI:NI225) lost 2 percent to hit a two-month closing low on Wednesday. The S&P/ASX 200 (INDEXASX:XJO) index fell 14.7 points to 4,490.7. The benchmark Indian 30-share BSE SENSITIVE (INDEXBOM:SENSEX) index slid 0.92 percent.

Company News Update

U.S.

Costco Wholesale Corporation (NASDAQ:COST) said fourth quarter profit jumped 27 percent to $609 million, or $1.39 per share, from $478 million, or $1.08 per share a year earlier. Analysts were expecting a profit of $1.31 per share. Sales rose 14 percent to $31.52 billion, while same-store sales increased 5 percent.
FedEx Corporation (NYSE:FDX) plans to cut costs at its Fedex Express business, as it looks to nearly double its annual profit over the next three years, chief executive Fred Smith said on Tuesday.
Groupon Inc (NASDAQ:GRPN) launched a new iPad-based payment service called Breadcrumb across the United States on Wednesday. Breadcrumb was founded by Seth Harris, and Groupon Inc (NASDAQ:GRPN) acquired the business in May.
Cummins Inc. (NYSE:CMI) lowered its full-year profit and revenue outlook and unveiled plans to cut as many as 1,500 jobs by the end of 2012, as the engine maker looks to cut costs amid a weakening global economy.
Perrigo Company (NASDAQ:PRGO) has received approval from the U.S. Food and Drug Administration to market its over-the-counter nicotine polacrilex mini lozenge.
Denim maker True Religion Apparel, Inc. (NASDAQ:TRLG) is considering a possible sale of the company, after receiving indications of interest from third parties, according to a report in The Wall Street Journal.
Industrial and medical conglomerate Danaher Corporation (NYSE:DHR) and electrical products maker Cooper Industries plc (NYSE:CBE) agreed to sell their hand and power tools joint venture, Apex Tool Group, to private equity firm Bain Capital LLC, for about $1.6 billion.
Toronto-based AuRico Gold Inc (USA) (NYSE:AUQ) (TSE:AUQ) has agreed to sell its Ocampo mine in Mexico and other assets to Carlos Slim’s Minera Frisco SAB for $750 million.
Networking and communications equipment provider Adtran, Inc. (NASDAQ:ADTN) reported third quarter adjusted earnings of 20 cents per share that beat the average analysts’ estimate of 19 cents per share. Sales for the period came in at $162.12 million, trailing estimates of $171.55 million.
Private equity firm The Blackstone Group L.P. (NYSE:BX) raised $13.3 billion for its Blackstone Real Estate Partners VII fund in the last 13 months.
House wares and personal-care products company Helen of Troy Limited (NASDAQ:HELE) reported second quarter profit of $23 million, or 72 cents a share, down from $23.6 million, or 74 cents, in the year-ago period. Analysts had forecast earnings of 85 cents a share.
Host Hotels and Resorts Inc (NYSE:HST) reported third quarter loss of $34 million compared with a year-earlier loss of $33 million. Revenue for the period increased 6.5 percent to $1.2 billion. The real-estate investment trust said funds from operations climbed 12 percent to $127 million, or 17 cents per share, from $113 million, or 16 cents per share, in the same quarter last year.
eGain Communications Corporation (NASDAQ:EGAN) said it expects first-quarter revenue to be between $10 million to $10.5 million that will be below Wall Street’s expectations of $10.8 million.
Dynamic Materials Corporation (NASDAQ:BOOM) said Kevin Longe will succeed Yvon Cariou as president and chief executive officer, effective March 1.
The Home Depot, Inc. (NYSE:HD) fell close to a percent in early morning trade after Oppenheimer downgraded the stock to “perform” from “market perform.”
Bernstein has lowered Viacom, Inc. (NASDAQ:VIAB) to “underperform” from “market perform.”
Monster Beverage Corp (NASDAQ:MNST) tumbled 4.8 percent in pre-market trading after Stifel Nicolaus cut the beverage maker’s shares to “hold” from “buy,” citing a deceleration in sales.

Europe

Talks over a merger between EADS NV (EPA:EAD) and BAE Systems plc (LON:BA) collapsed on Wednesday after last-ditch efforts to resolve a political impasse between the UK, French and German governments failed.
Vodafone Group Plc (ADR) (NASDAQ:VOD) (LON:VOD) may win a reprieve in a $2.2 billion Indian tax case after a government appointed panel suggested that the country scrap a law that taxes asset transfers retrospectively.
Goldman Sachs Group, Inc. (NYSE:GS) withdrew as a lead banker for Russian mobile phone operator, MegaFon’s initial public offering in Moscow and London due to corporate governance concerns.
U.K. bank Lloyds Banking Group PLC (ADR) (NYSE:LYG) (LON:LLOY) jumped 3.5 percent in London amid reports that it was close to offloading about 2 billion euros ($2.6 billion) of Irish real estate loans.
European Union antitrust regulators are likely to tell United Parcel Service, Inc. (NYSE:UPS) that its 5.2 billion euro ($257.92 million) takeover bid for Dutch delivery group, TNT Express NV (AMS:TNTE) is anti-competitive, according to a report in The Financial Times.
Man Group Plc (LON:EMG) rallied 2.8 percent in London after British media speculated the hedge fund manager may be a takeover target.
Dutch brewer Anheuser-Busch InBev NV (ADR) (NYSE:BUD) (EBR:ABI) slumped the most in a month after a report said that the U.S. government may block its $20 billion takeover of Mexico’s Grupo Modelo SAB de CV.
GlaxoSmithKline plc (ADR) (NYSE:GSK) (LON:GSK)’s vaccines division has teamed up with non-profit biotech group Aeras to jointly assess an experimental tuberculosis vaccine.
Medical equipment manufacturer Smith & Nephew plc (ADR) (NYSE:SNN) (LON:SN) tumbled 2.5 percent in London trading after analysts at Societe Generale initiated coverage of the stock with a sell recommendation.
French car maker Peugeot SA (EPA:UG) fell 1.7 percent after receiving a downgrade from credit ratings agency Moody’s.

Asia-Pacific

Japanese auto giant Toyota Motor Corporation (NYSE:TM) (TYO:7203) will recall 7.4 million vehicles globally, including 2.47 million cars and light trucks sold in the U.S., to fix malfunctioning power window switches, the company said on Wednesday.
The Canadian government is likely to exclude Chinese telecom equipment maker Huawei Technology Co Ltd (SHE:002502) from a project to build a secure government communications network because of possible security risks, according to a Reuters report.
Bank of China (HKG:3988) (SHA:601988) closed significantly higher in Hong Kong after Central Huijin Investment Ltd., an investment arm of China’s sovereign-wealth fund, increased its stake in the mainland bank during the third quarter.
Morgan Stanley (NYSE:MS) and Mitsubishi UFJ Financial Group Inc (ADR) (NYSE:MTU) (TYO:8306)’s chief executives will meet this week in Tokyo to discuss ways to strengthen their global tie-ups, according to a Bloomberg report.
Electric utility Korea Electric Power Corporation (ADR) (NYSE:KEP) slid 2.8 percent in Seoul after state-run Korea Deposit Insurance Corp sold about $550 million worth of shares.
Japan’s Toshiba Corp (TYO:6502) said it has agreed to buy The Shaw Group Inc. (NYSE:SHAW)‘s 20 percent stake in nuclear power plant company Westinghouse Electric Co for about 125 billion yen ($1.6 billion) in cash.
Steel & Tube Holdings Limited (NZE:STU) plunged 8.3 percent in Wellington after Australian iron-ore producer Arrium Ltd (ASX:ARI) sold its entire 50.3 percent stake in its New Zealand unit at a 15 percent discount.
Kobe Steel, Ltd. (TYO:5406) lost 4.8 percent in Tokyo after Nomura Holdings, Inc. (TYO:8604) slashed its target price to 65 yen from 77 yen.