NYSE Morning Update 04/09/12

Ahead of the Bell: Dow futures are trading down 119 points and S&P futures are trading down 15.40 points.Equity markets are under pressure this morning as investors return from a long weekend and reaction to Friday’s disappointing jobs report continues to take its toll on the markets. 

  • On the economic calendar Friday, Nonfarm Payrolls were up 120,000, lower than the 205,000 expected by economists.  The results have investors questioning the momentum that the labor market had been gaining.  Despite the number, the unemployment rate did tick down to 8.2%, but that is believed to be the result of fewer Americans seeking work vs. more actual jobs. The dollar is up against the major currencies.  Gold is trading up at $1,643. Crude oil is currently trading down at $101 a barrel.

  • Thursday, stocks furthered a slow decline as investors continued to feel discouraged over waning hopes for domestic QE3 plans and on continued fears over the recovery in the Euro zone on the back of a disappointing bond auction in Spain last week; major indices were mixed as the Dow and S&P closed lower and Nasdaq closed higher.

  • On CNBC today, Former Treasury Department Undersecretary, John Taylor, talked about the lackluster economic recovery in the U.S.  He believes that we had a deep recession in 2008/2009 from which we are only seeing a 2.5% recovery rate vs. the 6% growth rate we saw in the early 80’s even as unemployment was higher in ‘81/’82.  Policy is the reason for the slow improvement.  He believes unemployment could be at 6% today if we had a better plan in place.  Temporary policies with one little stimulus after another is the key issue along with tax rate hike fears.  One suggestion Taylor had was if President Obama had made middle class tax cuts permanent, that would have done more to alleviate the drag on the economy as we try to recover from the recent recession.

Thursday’s Close

DJIA down 14.61 pts/-0.11%/13,060.14

S&P down 0.88 pts/-0.06%/1,398.08

Nasdaq up 12.41 pts/+0.40%/3,080.50

Monday’s Futures

Dow Futures down 119 pts

S&P Futures down 15.50 pts

Nasdaq Fut down 29.5 pts

Overseas Markets

FTSE +0.35%

CAC 40 +0.19%

NIKKEI 225 -1.47%

HANG SENG -0.95%

Overseas:  World stock markets were mixed today.  Asian markets are down after investors are worried that a higher than expected Chinese CPI will cause policy makers to be cautious in adding stimulus to boost growth.

Economic Reports:  None

Top Headlines:    

  • AOL Inc. announced that it has entered into a deal with Microsoft to sell over 800 of its patents for $1.056 billion.  AOL will continued to hold over 300 patents.  AOL management and directors plans to return the proceeds of the patent deal to shareholders. AOL shares are trading up 37% to $25.25 in the pre-market.

  • AT&T employees will return to work despite the company’s failure to reach an agreement with the Communications Workers of America union covering some 40,000 of its employees.

  • Avon Products Inc.’s directors have appointed Sheri McCoy as its new CEO; Ms. McCoy was previously Vice Chairman of Johnson and Johnson’s Pharmaceutical, Consumer, Corporate Office of Science & Technology, and Information Technology divisions. Avon’s current Chairman and CEO, Andrea Jung will continue as the company’s Chairman.   

  • Sony Corp is reportedly planning on reducing its workforce by 10,000 which is 6% of its workforce.  This is the first step that new CEO Kazuo Hirai would employ as part of his restructuring plan to turn the struggling electronics company around.

  • Parent company of Outback Steakhouse, Bloomin Brands, has filed for an IPO of up to $300 million


Gold: up $13.70 to $1,643.80
Oil: down 1.42 to $101.89

EUR/USD: -00.26 to 1.3073
USD/JPY: -0.14 to 81.38
GBP/USD: -0.0029 to 1.5857

Volatility Index (VIX): As of the close of business Thursday, April 5, the VIX is up 0.26 to 16.70

Today’s Opening and Closing Bells:

The NYSE is celebrating Financial Literacy Week; in honor of the occasion, Workplace Financial Fitness Award Winners will ring the Opening BellSM.

Winners from the NYX Shares Employee Volunteer Contest from Singapore, Belfast and New York will ring The Closing BellSM.


Courtney Raio

NYSE Euronext

(212) 656- 5404


Nothing herein constitutes an offer to sell or a solicitation of an offer to buy any security or a recommendation of any security or trading practice. Some information included above has been aggregated from multiple public third-party financial news sources for informational purposes only and redistributed to the NYSE Euronext community.  NYSE Euronext does not control the content provided by these sources and does not guarantee the accuracy, integrity or quality of such content.    

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