Morning Report: April 5, 2012

Ahead of the Bell: Dow futures are trading down 44 points and S&P futures are trading down 5 points. Equity markets are looking to extended recent losses as investors take profits and get used to the idea that central banks around the world will not provide further stimulus.  Spain's debt problems also continue to be in focus while reports out of China indicate the service industry expanded more than forecasted and business confidence rose to an 11-month high.

• On the economic calendar today, weekly initial jobless claims will be out before the market opens and economists are expecting a reading of 360K compared with 359K.  St. Louis Federal Reserve Bank President, James Bullard will be speaking at the 13th Annual Invest Midwest Venture Capital Forum. The dollar is up against the major currencies.  Gold is trading at $1,623. Crude oil is currently trading at $101 a barrel.


• Yesterday, stocks fell sharply for a second day in row on disappointing economic data from the euro zone which sent renewed fears about a global slowdown, as all the major indices fell about 1%.


• On CNBC today, Roger Altman, founder & Chairman of Evercore Partners talked about the recent sell off in the equity markets and the state of the economy.  Altman said the market is taking a breath which is both standard and healthy.  He believes the recovery has been modest so far and thinks the European crisis will continue, however, we have maximum monetary easing, both in the US and Europe, and the Fed is keeping interest rates low through 2014 which Altman thinks is phenomenal for the economy.  He believes investors could not ask for a better situation from the Fed, and the central bank not providing any additional stimulus is not a bad thing.  


• Happy Thursday and have a wonderful long weekend.  Equity markets are closed for Good Friday.

Wednesday’s Close

DJIA down 124.80 pts/-0.95%/13,074.75

S&P down 14.42 pts/-1.02/1,398.96

Nasdaq down 45.48 pts/-1.46/3,068.09

Thursday’s Futures

Dow Futures down 44.00 pts/-0.37%

S&P Futures down 5.40 pts/-0.35%

Nasdaq Fut down 5.22 pts/0.26%

Overseas Markets

FTSE -0.32%

CAC 40 -0.34%

NIKKEI 225 -0.53%

HANG SENG -0.95%

Overseas:  World stock markets were down today.  European and Asian markets are down after investors are worried central banks around the world will not provide further stimulus to the global economy.       

Economic Reports:  Initial Jobless Claims expected to be 360K at 8:30 a.m.

Top Headlines:    

• Reports indicate Apple Inc. (AAPL) and other electronic-book publishers are split on agreeing to terms demanded by US and EU regulators for alleged e-book price fixing.


• Bloomberg reports Delta Airlines (DAL) is considering a bid for ConocoPhillips' (COP) refinery in Trainer, PA because of surging fuel cost.


• JPMorgan Chase & Co. (JPM) CEO, Jamie Dimon said the company is inclined to restrict its stock repurchase when its share price is above $45.


• Reports indicate Quest Software Inc.'s (QSFT) management rush to sell the company to head off a possible investigation by regulators, according to a shareholder lawsuit.       

Commodities/Currency:

Gold:up $3.10 to $1,623.85
Oil: up 0.37 to $101.84

EUR/USD 1.3074 -0.0066
USD/JPY 81.8576  -0.5925
GBP/USD 1.5830 -0.0061

Volatility Index (VIX): As of the close of business Wednesday, April 4, the VIX is up 0.78 at 16.44

Companies Reporting Quarterly Earnings:     

Pier 1 Imports reports Q4 EPS 48c, vs. Est 48c and Q4 revenue $476.76M, vs. Est $472.09M.

SemiLEDs reports Q2 EPS (22c), vs. Est (25c) and Q2 revenue $7.9M, vs. Est $7.41M.

Today’s Opening and Closing Bells:

Kaman Corporation to celebrate the company’s recent transfer to the NYSE on Feb. 7, 2012. Neal Keating, CEO, accompanied by company executives will ring the opening bell.

J.P. Morgan’s ADR team will visit the NYSE.  J.P. Morgan pioneered the depositary receipts market over 85 years ago, introducing the first-ever DR in 1927 will ring the closing bell.

Paras Madho

NYSE Euronext

Market Watch and Corporation Actions

(212) 656- 5404

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