Morning Report: April 11, 2012

Ahead of the Bell: Dow futures are trading up 90 points and S&P futures are trading up 11 points following the worst trading day for the equity markets of the year so far.  Stocks are looking to rebound after Alcoa reported better than expected first quarter results, thanks in part to strong orders from automobile and aircraft manufacturers for aluminum materials. Separately, CNBC is reporting an 8.8 magnitude earthquake struck off the coast of Indonesia today.  A Tsunami watch is in effect for the entire Indian ocean including Thailand, Indonesia, Sri Lanka, and India.   

• On the economic calendar today, import and export prices for March will be one of the first reports out today.  Economists are forecasting it to be 0.3% compared with 0.4% for February. 


• Federal Reserve Bank of Atlanta President, Dennis Lockhart will make welcoming remarks at the Atlanta Fed conference.  Boston Federal Reserve Bank President, Eric Rosengren will also be speaking at the Atlanta Fed's Financial Markets Conference, in Stone Mountain, GA.  The dollar is down against the major currencies.  Gold is trading at $1,658. Crude oil is currently trading at $101 a barrel.


• Yesterday, stocks tumbled for a fifth day in a row amid concerns the European debt crisis is deteriorating, after Spanish officials declined to rule out a rescue plan for the nation.


• On CNBC today, Mark Mobius, Executive Chairman of the Templeton Emerging Markets Group, talked about US and emerging markets. Mobius does not think the recent decline in US equities is the tipping point of a major pull back, he feels the economy is actually in pretty good shape.  On emerging markets, Mobius is bullish on Russia because it has been beaten down, and the valuations and political situation are getting better.  He also likes China, Indonesia and Thailand and thinks China might exceed their growth, but cautions they have to worry about inflation.   


• Happy Wednesday and have a nice day.

Tuesday’s Close

DJIA down 213.66 pts/-1.65%/12,715.93

S&P down 23.61 pts/-1.71/1,358.59

Nasdaq down 55.86 pts/-1.83/2,991.22

Wednesday’s Futures

Dow Futures up 90.00 pts/+0.67%

S&P Futures up 11.40 pts/+0.79%

Nasdaq Fut up 20.22 pts/+0.12%

Overseas Markets

FTSE +0.75%

CAC 40 +1.54%

NIKKEI 225 -0.83%

HANG SENG -1.06%

Overseas:  World stock markets were up today.  European and Asian markets are up as investors turn their attention to first quarter earnings season.       

Economic Reports:  Import and Export Prices expected to be 0.3% at 8:30 a.m. and Treasury Budget expected to be $-188.7 B at 2:00 p.m.

Top Headlines:    

• Reports indicate Apple Inc. (AAPL) and other e-book publishers are expected to be sued by the DOJ as early as today over alleged electronic book price-fixing.


• Reebok International Ltd and Nike Inc. (NKE) have agreed on a settlement to which Reebok will stop selling New York Jets football apparel with the name Tim Tebow.


• Amgen Inc. (AMGN) announced it is acquiring privately held KAI Pharmaceuticals for $315 million on cash. 


• MBA reports mortgage applications were down 2.4% versus up 4.8% last week. The thirty-year fixed mortgage rate decreased to 4.10% from 4.16%.      

Commodities/Currency:

Gold:down $.82 to $1,658.85
Oil: up 0.51 to $101.50

EUR/USD 1.3148 +0.0064
USD/JPY 80.8650  +0.1400
GBP/USD 1.5930 +0.0065

Volatility Index (VIX): As of the close of business Tuesday, April 10, the VIX is up 1.58 at 20.39

Companies Reporting Quarterly Earnings:     

Titan Machinery reports Q4 EPS 84c, vs. Est 53c and Q4 revenue $607.02M, vs. Est $438.94M.

Today’s Opening and Closing Bells:

Cities for Financial Empowerment (CFE) --NYSE Euronext Commemorates Financial Literacy Week (April 9-13) will ring the opening bell.

NFTE, CEE, and JA ring the closing bell at the NYSE to Launch the “NYSE Euronext Virtual Field Trip” --NYSE Euronext Commemorates Financial Literacy Week (April 9-13).

Paras Madho

NYSE Euronext

Market Watch and Corporation Actions

(212) 656- 5404

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