Morning Report: April 4, 2012

Ahead of the Bell: Dow futures are trading down 89 points and S&P futures are trading down 10 points after the Federal Reserve signaled it may refrain from more monetary stimulus to boost the economy. Data from the euro zone showed retail sales and business activity contracted in February and March, respectively. The disappointing economic data cemented investors fears that the region is in a recession.      



  • On the economic calendar today, the ADP employment report for March will be out before the market opens, the market is looking for 208K compared with 216K for February.  ISM Non-Mfg Index for March will be out after the market opens, expectation is that it will be 57.0 versus 57.3 for the previous month. 

  • San Francisco Federal Reserve Bank President, John Williams will be speaking at the San Francisco Planning and Urban Research business breakfast. The dollar is up against the major currencies.  Gold is trading at $1,626. Crude oil is currently trading at $103 a barrel.

  • Yesterday, stocks fell after the minutes of the Fed’s last meeting showed that the central bank is holding off on increasing monetary stimulus unless the economic expansion falters.

  • On CNBC today, David Bonderman, Texas Pacific Group Founder and Partner talked about the global economy.  Bonderman thinks people are congenital optimists, and believes investors can only stay away from the market for so long.  He feels the economy is in much better shape than it appears and points out Europe will not fall off the face of the earth.  In fact, Bonderman expects nothing much will happen with Europe and that it will retain the status quo for the next five years.   

  • Happy Wednesday and have a nice day.

Tuesday’s Close


DJIA down 64.94 pts/-0.49%/13,199.55


S&P down 5.66 pts/-0.40/1,413.38


Nasdaq down 6.13 pts/-0.20/3,113.57


 


Wednesday’s Futures


Dow Futures down 89.00 pts/-0.68%


S&P Futures down 10.40 pts/-0.76%


Nasdaq Fut down 19.22 pts/0.69%


 


Overseas Markets


FTSE -1.20%


CAC 40 -1.56%


NIKKEI 225 -2.29%


HANG SENG +1.31%


 


Overseas:  World stock markets were down today.  European and Asian markets are down after the Federal Reserve hinted it will not implement any quantitative easing unless the economy falters.       


 


Economic Reports:  ADP Employment Report expected to be 208K and ISM Non-Mfg Index expected to be 57.0 at 10:00 a.m.


 


Top Headlines:    



  • Justice Holdings, a London based firm, said it will pay $1.4 billion for a 29% stake in Burger King, in a move which will see the company go public.

  • Viasystems Group, Inc. (VIAS) announced it is acquiring DDi Corp. (DDIC) for about $282 million or $13.00 per share in cash.

  • A Brazilian prosecutor has filed a second law suit of $10.9 billion against Chevron Corp (CVX) and Transocean Ltd (RIG) with regards to an oil spill off the coast of Brazil.

  • Groupon Inc. (GRPN) is being sued by shareholders for misleading investors about its financial results and not disclosing internal controls.

  • MBA reports mortgage applications were up 4.8% versus down 2.7% last week. Thirty-year fixed mortgage rate decreased to 4.16% from 4.23%.      

Commodities/Currency:


Gold:down $19.10 to $1,626.85
Oil: down 0.93 to $103.33

EUR/USD 1.3167 -0.0067
USD/JPY 82.1690  -0.6850
GBP/USD 1.5871 -0.0035


 


Volatility Index (VIX): As of the close of business Tuesday, April 3, the VIX is up 0.02 at 15.66


Companies Reporting Quarterly Earnings:     


MSC Industrial reports Q2 EPS 95c, vs. Est 95c and Q2 revenue $562.97M, vs. Est $554.69M.


Today’s Opening and Closing Bells:


 


Annie’s, Inc. Celebrates its IPO on the New York Stock Exchange CEO John Foraker and Chairman Molly Ashby Join Family and Friends will ring the opening bell.


 


The Hanover Insurance Group Celebrates 160th Anniversary One of the Oldest Companies on the NYSE and Fastest Growing Insurers will ring the closing bell.


 


  


Paras Madho


NYSE Euronext


Market Watch and Corporation Actions


(212) 656- 5404


 


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