Ahead of the Bell: Dow futures are trading down 112 points and S&P futures are trading down 14 points. Global shares are in retreat mode, as investors cut their exposures to high risk assets, following no central bank action from Japan and speculation over a German Constitutional Court hearing on the legality of the European Central Bank bond-buying scheme. The sell off across the globe was prompted by disappointment over the Bank of Japan not following up on its $1.4 trillion stimulus program announced in April at its last policy meeting. Concerns over slower growth in China also added to worries over lack of action by central banks.
- On the economic calendar today, April wholesale trade data will be released after the market opens and a 0.2% increase is expected, vs. a 0.4% increase the month before.
- The dollar is up against the British pound and Japanese yen and down against the euro. Gold is trading at $1,372. Crude oil is currently trading at $94 a barrel.
- Yesterday, stocks traded sideways despite a credit upgrade for the US, as concerns over when the Fed will scale back its stimulus continues weigh on investors.
- On CNBC today, former GE chairman and CEO, Jack Welch, talked about the recent IRS scandal and union and government employees. Welch said he is very concerned with people in jobs that benefit from the people they elect- this is a serious issue. Government employees and union workers elect politicians, and no matter how decent these people are, they are still bias. The IRS and BLS are agencies that are bias. These organizations make subjective political judgments on who they elect. Welch pointed out that prior to the last election, the government hired the largest numbers of workers in the last 20 years since the Regan administration. Welch went on to say, the sole purpose of the IRS an the BLS is to hire more people, get better paying jobs and collect more revenue.
- Have a great day!
Mondays Close
DJIA down 9.53 pts/-0.06%/ 15,238.59
S&P down 0.57 pts/-0.03%/ 1,642.81
Nasdaq up 4.55 pts/+0.13%/ 3,473.77
Tuesday’s Futures
Dow Futures down 112.27 pts/0.74%
S&P Futures down 14.50 pts/-0.87%
Nasdaq Futures down 25.25 pts/-0.85%
Overseas Markets
FTSE -1.61%
CAC 40 -1.78%
NIKKEI 225 -1.45%
HANG SENG -1.20%
Overseas: World stock markets are down today. European and Asian markets are down following no central bank action from Japan and sell off in euro zone bonds.
Economic Reports: Wholesale Trade (+0.2% expected) at 10:00 a.m.
Top Headlines:
- Japanese mobile operator Softbank Corp. has raised its offer for Sprint Nextel Corp (S) to $21.6 billion from $20.1 billion to counter Dish Network's (DISH) $25.5 billion bid.
- Dole Food Company Inc. (DOLE) said it has received an offer from CEO, David Murdock to buy the remaining shares of the company he does not own for $12 per share or about $1.5 billion.
- The Timken Company (TKR) announced it is exploring a possible spinoff of its steel unit at the urging of an activist investor. The BOD has formed a strategy committee to evaluate a potential separation of the steel business from its other businesses.
- Apple Inc. (AAPL) unveiled a streaming music service called iTunes Radio and new mobile software, the biggest redesign of its operating system since introducing the original iPhone in 2007.
Commodities/Currency:
Gold:down $13.20 to $1,372.50
Oil:down 0.98 to $94.79
EUR/USD 1.3287 +0.0030
USD/JPY 96.8900 -2.1200
GBP/USD 1.5549 -0.0019
Volatility Index (VIX): As of the close of business Monday, June 10, the VIX is down 1.77 at 15.44
Companies Reporting Quarterly Earnings:
North American Energy reports Q4 EPS (C$0.26) vs. Est (C$37c) vs. last year Reports Q4 revenue C$130.28M vs. Est C$181.09M last year.
Medical Action reports Q4 EPS ex-items 8c, vs. Est 10c and Q4 revenue $107.9M, vs. Est $110.03M.
National Technical reports Q1 EPS 12c,vs. Est 11c and Q1 revenue $45M vs. Est $43.5M last year.
Today’s Opening and Closing Bells:
PureFunds Visits the NYSE. Chief Executive Officer Paul Zimnisky will ring the opening bell.
CoreLogic Celebrates 20 Years of Affiliation with the NYSE. Anand Nallathambi, President and Chief Executive Officer will ring the closing bell.
Paras Madho
Corporate Actions & Market Watch
NYSE Euronext | Global Corporate Client Group
11 Wall Street | New York NY 10005
P: (212) 656-5404
pmadho@nyx.com
Exclusive Market Intelligence, Insight, and Network: www.NYSEConnect.com
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