Wednesday
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| DJIA Futures | 12811 | -56 |
| S&P 500 Futures | 1350.5 | -7.99 |
| NASDAQ Futures | 2606.5 | -16.25 |
| FTSE 100 | 5531.79 | -22.7599 |
| Xetra DAX | 6445.25 | 0.51 |
| CAC40 | 3107.26 | -17.53 |
| Nikkei 225 | 9045.06 | -136.58 |
| Hang Seng | 20330.64 | -154.1 |
| Euro | 1.2971 | -0.0035 |
| NYMEX Crude | 96.31 | -0.69 |
| 10-Year Note | 101.563 | 1.824 |
Source: Dow Jones/Reuters
All Quotes as of 4:00 p.m. ET
SNAPSHOT
Stock seen lower; Greek fears weigh on euro, prompting slow move into safety of dollar and yen; Treasurys lower; Brent lower at $112.44, Nymex down at $96.55; Gold lower at $1,580.09.
Watch for: Monthly Wholesale Trade data.
OPENING CALL
Stocks are called to open lower Wednesday, as concerns about a fracturing euro zone continued to weigh on risk appetite, said Michael Hewson at CMC Markets. A trader said that wholesale inventories data, due at 1000 ET, are expected to have risen by 0.6%, compared with a 0.9% increase in February.
"The Greek elections unnerved the market," said Andrew Slimmon, managing director at Morgan Stanley Smith Barney. "It's also the timing of all this. We had a very good first four months of the equity market. We're coming into the summer and there's the prevailing 'sell in May, go away' idea."
"I think we're having a pullback and it could last another couple of weeks," Slimmon said.
EQUITIES
GlaxoSmithKline (GSK) said Wednesday it's taking its hostile $2.6 billion takeover offer for Human Genome Sciences (HGSI) direct to the U.S. biotech's shareholders, by launching a tender offer at $13 a share this week.
HGS, a U.S. pioneer of gene-based drug discovery that sells a new drug for lupus with Glaxo, has so far rejected the offer made last month, pointing out that its shares traded at $30 a year ago. The target company has started a strategic review which it hopes will encourage rival bids.
A shareholder of embattled natural-gas giant Chesapeake Energy (CHK) accused the company of understating the cost of personal jet travel provided to top executives and outside directors by as much as $10 million per year.
In a lawsuit filed in state court in Oklahoma City, the shareholder claims that Chesapeake misled investors by stating in regulatory filings that personal use of company aircraft was "limited" and that the company's fleet of jets was used "primarily" for business travel.
Software provider SS&C Technologies Holdings (SSNC) said Wednesday that it was giving shareholders in GlobeOp financial Services (GO.LN) until May 14 to accept the group's cash offer for their shares as the company looks to wrap up a deal to buy the hedge fund administrator.
SS&C said that so far 62% of GlobeOp shareholders have accepted its offer, which values the business at around GBP521 million. However, the group needs 70% of shareholders to agree before any deal can be rubber-stamped. This is the second time that SS&C is extending its offer for GlobeOP
Moody's Investors Service raised its outlook on Janus Capital Group (JNS) to stable from negative, pointing to the company's improving debt picture.
Janus has produced somewhat stronger financial metrics even as the money manager continues to struggle with lackluster investment performance and client outflows. Investors aren't meaningfully putting money into mutual funds that invest in stocks despite the recent strong market rebound.
FOREX
In foreign exchange markets, Spanish 10-year yields rose above 6% for the first time since late April and the euro aborted an attempt to trade above $1.30. That was followed by a slow move into the relative safety of the dollar and yen and out of sterling, the euro and the Australian dollar. Elsewhere, European equities were mostly holding ground, peripheral euro-zone yield spreads were close to session-wides. Later in the day is the German bobl auction which may well struggle given the historically low yields on offer.
At 0535 ET, the euro was down at $1.2976, the dollar was lower at Y79.67 and the pound was down at $1.6115.
BONDS
Treasury yields continued to fall on European woes with the 10-year hitting 1.825%, a level last seen at the start of February, according to Tradeweb. Ongoing concerns over the political situation in Greece and its potential exit from the euro, and the beleaguered banking sector in Spain, gave safe-haven assets yet another push. Tuesday's 3-year Treasury auction passed without incident leaving the market prepping itself for Wednesday's $24B 10-year sale which should draw good demand despite the low yields on offer. The June Treasury contract was 3/32 higher at 133.005/32.
At around 0245 ET, the SovX Western Europe index, which investors can use to buy or sell credit default swaps on a basket of 15 sovereign borrowers, was at 276/283 basis points, flat from Tuesday's close, according to data-provider Markit.
The iTraxx Europe index, which comprises 125 high-grade borrowers, 25 of which are banks and insurers, was also flat at 150/151 basis points. The Crossover index of 40 mostly sub-investment-grade European corporate borrowers was two basis points tighter at 673/676 basis points.
COMMODITIES
Oil futures were down as the euro remained under pressure from widespread concerns over the political turmoil in Greece and investors fretted about renewed euro-zone instability. Saudi Oil Minister Ali Naimi's comments Tuesday that oil prices were "too high" only added to downward pressure on U.S. crude futures, said London Capital Group. However, although another test of lows around $95.50/bbl on U.S. crude is expected, support should hold, it added.
Even a dramatic slide below $1,600/oz hasn't been sufficient to significantly boost physical demand for gold, and the metal may well need to fall further--perhaps as far as $1,550/oz--before price-sensitive physical buyers begin to step up to the plate, said UBS. "Physical buying yesterday did kick in on the journey back to $1,600/oz, but it wasn't an overwhelming response," said the bank. "The biggest variable that could activate demand again is likely to be price appeal." Demand from top gold-consumer India remained hampered by a weak rupee vs the dollar, the bank added.
German exports and imports rise in March to their highest levels on record, widening the country's current account surplus and supporting economic growth in Europe's largest economy.
The Swiss National Bank's decision to set a floor on its foreign exchange rate is appropriate, but may require further monetary expansion, the IMF says.
France's trade deficit narrows in March compared with a year earlier, as export growth outpaces the rise in imports.
Sweden's Anders Borg decides to stop a much-criticized tax law proposal regarding the taxation of partners in private equity companies.
Australian Treasurer Wayne Swan says the biggest fiscal overhaul in three decades unveiled by the government boosts the scope for the central bank to cut interest rates.
A prominent lawmaker in Australia's center-right opposition warns the government against a plan to raise the nation's borrowing ceiling.
Australia's triple-A credit rating is safe for now but budget forecasts for a sharp widening in the current account deficit pose a real risk for the sovereign, the ratings agency says.
Germany's Commerzbank says 1Q net profit shrank by almost two-thirds, hit by lower interest and commission income and an accounting charge on its own debt.
Australia's Department of Education, Employment and Workplace Relations says its leading indicator of employment fell for the fifth consecutive month in May.
GlaxoSmithKline says it's taking its hostile $2.6 billion takeover offer for Human Genome Sciences direct to the U.S. biotech's shareholders, by launching a tender offer at $13 a share this week.
Conditions in China are currently suitable for interest rate liberalization, the state-run China Securities Journal reports, citing a former central bank adviser.
European Council President Herman Van Rompuy calls on Greece to move ahead with spending cuts and reforms, as he voices concern over the country's political turmoil.
Spain's government plans to require banks to set aside between EUR20 billion and EUR40 billion ($26 billion-$52 billion) in additional provisions to overhaul the country's financial sector.
Agrium (AGU) 1Q; analysts expect earnings of 99 U.S. cents a share
Enbridge (ENB) 1Q; analysts expect earnings of 48 Canadian cents a share
Tim Hortons (THI) 1Q; analysts expect earnings of 58 Canadian cents a share
none
Finning International (FTT.T) boosted its quarterly dividend by 8% based on its strong outlook for the year
Enbridge (ENB) earnings conference call at 9 a.m.
7:00 a.m.
May 4 MBA Weekly Mortgage Applications Survey Market Composite Index (previous 698.2), Cur Chg (previous +0.1%), Purchase Index (S.A.) (previous 190.7), Cur Chg (previous +2.9%), Refinance Index (previous 3687.7), Cur Chg (previous -0.7%)
9:00 a.m.
Minneapolis Fed Pres Kocherlakota speaks on 'Toward a More Transparent Monetary Policy' in Minneapolis, Minn.
10:00 a.m.
Mar Monthly Wholesale Trade Inventories (expected +0.6%)
10:30 a.m.
May 4 EIA Weekly Petroleum Status Report Crude Oil Stocks (previous 375.86M), (Net Change) (expected +2M), Gasoline Stocks (previous 209.72M), (Net Change) (expected -0.3M), Distillate Stocks (previous 124.02M), (Net Change) (expected +0.4M), Refinery Usage (expected 86.3%), Total Products Supplied (previous 18.54M), (Net Change) (previous -0.21M)
10:45 a.m.
Cleveland Fed Pres Pianalto speaks on 'Leadership' in Lexington, Kentucky.
12:00 p.m.
Federal Reserve Bank of Philadelphia - Philadelphia Fed President Charles Plosser speech at community development conference
Callon Petroleum Co Raised To Outperform From Neutral By R.W. Baird
Cornerstone OnDemand Started At Buy By Needham Research
Jive Software Inc Started At Hold By Needham Research
Morgan Stanley Raised To Buy From Hold By S&P; Capital IQ
S&P; 500 Year-End Target Cut To 1450 From 1470 By Credit Suisse
Seagate Technology Cut To Sell From Buy By Noble Financial
The Andersons Cut To Buy From Strong Buy By Feltl & Co.
Zillow Don't Expect A Sustained Decline Or Rise In Rates In The Coming Week
Zillow: 30-Yr Fixed Mortgage Rate Currently 3.65%, Dn 4 Basis Points
Zillow: 30-Yr Fixed Mortgage Rate Drops To New Record Low
7 Days Grp Hldgs Ltd. (SVN)
0.07
AboveNet Inc. (ABVT)
0.68
Abraxas Petroleum Corp. (AXAS)
0.04
Accretive Health Inc. (AH)
0.06
Achillion Pharms Inc. (ACHN)
-0.15
Activision Blizzard Inc. (ATVI)
0.04
AEterna Zentaris Inc. (AEZS)
-0.09
Agrium Inc. (AGU)
1
Aker Solutions Asa Adr (AKKVY)
0.14
Alexander & Baldwin Inc. (ALEX)
0.15
Alterra Capital Hldgs Ltd. (ALTE)
0.64
AMERISAFE Inc. (AMSF)
0.34
AOL Inc. (AOL)
0.18
Ariad Pharms Inc. (ARIA)
-0.25
Babcock & Wilcox Co. (BWC)
0.38
Banco Macro S.A. ADS (BMA)
1.24
BanColombia S.A. ADS (CIB)
1.19
Biolase Tech Inc. (BLTI)
-0.02
BMC Software Inc. (BMC)
0.81
BNC Bancorp (BNCN)
0.15
Broadwind Energy Inc. (BWEN)
-0.03
C&J; Energy Svcs Inc. (CJES)
0.97
Carlsberg A/S ADS (CABGY)
0.04
CenturyLink Inc. (CTL)
0.58
Cenveo Inc. (CVO)
0.03
China Lodging Grp Ltd. ADS (HTHT)
-0.02
Cisco Syss Inc. (CSCO)
0.47
Commerzbank AG ADS (CRZBY)
0.1
Companhia Energetica de Minas Gerais-CEMIG (CIG)
0.52
Companhia Energetica de Minas Gerais-CEMIG (CIG.C)
0.39
Compass Diversified Hldgs (CODI)
0.18
Consolidated Graphics Inc. (CGX)
0.77
Copa Hldgs S.A. (CPA)
1.97
Copano Energy L.L.C. (CPNO)
0.04
Credicorp Ltd. (BAP)
2.29
Crimson Exploration Inc. (CXPO)
-0.07
Cross Country Healthcare Inc. (CCRN)
0.01
Danaos Corp. (DAC)
0.06
Dean Foods Co. (DF)
0.21
Denison Mines Corp. (DNN)
-0.03
Digital Generation Inc (DGIT)
0.02
Dollar Thrifty Automotive Grp Inc (DTG)
1.35
E.On Ag Ads (EONGY)
1.11
Eagle Bulk Shipping Inc. (EGLE)
-0.32
Echelon Corp. (ELON)
-0.11
Enbridge Inc. (ENB)
0.48
Encore Capital Grp Inc. (ECPG)
0.66
EnergySolutions Inc. (ES)
0.06
Envestnet Inc. (ENV)
0.07
EOG Resources Inc. (EOG)
1.16
ESCO Tech Inc. (ESE)
0.42
EV Energy Partners L.P. (EVEP)
0.4
EZchip Semicon Ltd. (EZCH)
0.24
FleetCor Tech Inc. (FLT)
0.58
Flotek Indus Inc. (FTK)
0.18
Fortuna Silver Mines Inc. (FSM)
0.1
FTI Consulting Inc. (FCN)
0.61
FXCM Inc. (FXCM)
0.17
GAIN Capital Hldgs Inc. (GCAP)
0.08
Gastar Exploration Ltd. (GST)
-0.03
Globecomm Syss Inc. (GCOM)
0.18
Golden Star Resources Ltd. (GSS)
0.02
Harmony Gold Mining Co. Ltd. ADS (HMY)
0.12
Henkel Ag & Co Kgaa Spon Adr Pfd (HENOY)
1.14
Henkel AG & Co. KGaA ADS (HENKY)
1.14
Holcim Ltd Sponsored Adr (HCMLY)
0.08
HudBay Minerals Inc. (HBM)
0.13
Huntington Ingalls Indus Inc. (HII)
0.67
ING Groep N.V. ADS (ING)
0.45
Insulet Corp. (PODD)
-0.28
Inter Parfums Inc. (IPAR)
0.39
InterContinental Hotels Grp PLC ADS (IHG)
0.25
InterXion Hldg N.V. (INXN)
0.15
IntraLinks Hldgs Inc. (IL)
0.04
Jaguar Mining Inc. (JAG)
-0.03
Kaydon Corp. (KDN)
0.43
Kelly Svcs Inc. (KELYA)
0.19
Kelly Svcs Inc. (KELYB)
0.19
Knology Inc. (KNOL)
0.34
Kronos Worldwide Inc. (KRO)
0.74
Live Nation Entertain Inc. (LYV)
-0.44
Macy's Inc. (M)
0.39
Maidenform Brands Inc. (MFB)
0.24
MannKind Corp. (MNKD)
-0.22
MarkWest Energy Partners L.P. (MWE)
0.57
Melco Crown Entertain Ltd ADR (MPEL)
0.17
MEMC Electronic Materials Inc. (WFR)
-0.15
Mmx Mineracao E Metalicos S Spon Gdr (MMXMY)
0.04
Monster Beverage Corp. (MNST)
0.38
MYR Grp Inc. (MYRG)
0.22
Natural Resource Partners L.P. (NRP)
0.43
Nevsun Resources Ltd. (NSU)
0.14
News Corp. (NWSA)
0.31
News Corp. (NWS)
0.31
NICE-Syss Ltd. ADS (NICE)
0.53
Oiltanking Partners LP (OILT)
0.33
Omv Ag Ads (OMVKY)
1.31
Orexigen Therapeutics Inc. (OREX)
-0.12
Pacira Pharms Inc. (PCRX)
-0.39
PMFG Inc. (PMFG)
0.02
priceline.com Inc. (PCLN)
3.95
Primoris Svcs Corp. (PRIM)
0.24
Quantum Corp. (QTM)
0.03
Quest Software Inc. (QSFT)
0.25
Real Goods Solar Inc. (RSOL)
-0.07
Renewable Energy Grp Inc. (REGI)
0.15
Responsys Inc. (MKTG)
0.04
RigNet Inc. (RNET)
0.18
Rose Rock Midstream L.P. (RRMS)
0.26
Satcon Tech Corp. (SATC)
-0.1
Savient Pharms Inc. (SVNT)
-0.46
SciClone Pharms Inc. (SCLN)
0.13
Scientific Games Corp. (SGMS)
0.05
Silicon Graphics Intl Corp (SGI)
-0.03
Silvercorp Metals Inc. (SVM)
0.11
Simcere Pharm Grp ADS (SCR)
0.08
SodaStream Intl Ltd. (SODA)
0.45
Spectrum Brands Hldgs Inc (SPB)
0.4
Standard Parking Corp. (STAN)
0.25
Sterling Construction Co. Inc. (STRL)
-0.11
Stifel Fincl Corp. (SF)
0.54
Stratasys Inc. (SSYS)
0.28
Supertex Inc. (SUPX)
0.09
Susser Hldgs Corp. (SUSS)
0
Syneron Medical Ltd. (ELOS)
-0.1
Tdc A/S Sponsored Adr (TLDAY)
0.08
TELUS Corp. Non-Voting (TU)
1.05
Tesla Motors Inc. (TSLA)
-0.7
Tetra Tech Inc. (TTI)
0.04
Teva Pharm Indus Ltd. ADS (TEVA)
1.43
The Providence Svc Corp. (PRSC)
0.2
Threshold Pharms Inc. (THLD)
-0.12
Tim Hortons Inc. (THI)
0.59
Toyota Motor Corp. ADS (TM)
0.79
UniTek Global Svcs Inc. (UNTK)
-0.49
Universal Display Corp. (PANL)
0.04
Virtusa Corp (VRTU)
0.23
Vocera Commun Inc. (VCRA)
-0.05
Walker & Dunlop Inc. (WD)
0.31
Walter Invest Mgmt Corp. (WAC)
0.59
Wi-Lan Inc. (WILN)
0.1
XPO Logistics Inc (XPO)
-0.31