Market Snapshot for Monday, May 4, 2015

Market Snapshot

Asia: Japan closed. Hong Kong flat at 28124. China +0.9% to 4482. India +1.8% to 27491.
Europe: London closed. Paris +0.7%. Frankfurt +1.1%.
Futures: Dow +0.2%. S&P +0.2%. Nasdaq +0.1%. Crude +0.5% to $59.42. Gold +0.7% to $1182.70.
Ten-year Treasury Yield +7 bps to 2.12%

Economic News

8:30 US Consumer Spending
10:00 Factory Orders

Key earnings before the open

AMCX, ARCB, ARCC, ARRY, BSFT, BWP, CEVA, CMCSA, CNA, CTSH, CVC, D, DO, EMES, EXAS, GLPI, HNT, HSIC, HYH, KERX, KOS, L, LMIA, MDWD, MGM, NMM, ON, PETS, RLGY, SYY, TSN, WLK

Key earnings after the close

ADEP, AEGR, AEIS, APC, APU, ATEN, BALT, BBRG, BKH, CAR, CDE, CGNX, CHUY, CKEC, CXO, DENN, DNB, DVA, ECOM, EGOV, ELNK, ENH, EOG, EOX, FBP, FN, FNF, HIL, IDTI, IM, ININ, INN, INVN, IRG, ITRI, KS, LMNX, LSCC, MATX, MCEP, MDU, MERU, MIC, MUSA, NLS, NUVA, ONDK, OTTR, PACD, PLOW, PPS, PQ, PTCT, QLYS, RAIL, RGR, ROSE, RWT, SGY, SHO, SNHY, STAG, THC, TXRH, UGI, VNO, XEC, XPO

Markets

U.S. stocks rise today despite more weak economic data out of China, as investors look optimistically to a report on factory orders due out today, plus a slate of Fed speakers to glean more clues on the pace of rate hikes.

Chinese shares bounced back from their earlier lows on Monday as weak China factory activity reinforced views that Beijing will roll out more stimulus measures to support its slowing economy. The HSBC final Purchasing Managers’ Index fell to 48.9, its fastest drop in a year, down from the preliminary reading of 49.2 and weakening from the 49.6 print in March.

The eurozone’s manufacturing sector expanded in April, although at a slightly slower pace than in March, as orders continued to flow and companies added staff. Markit’s final April manufacturing PMI fell to 52.0, revised up from a flash reading of 51.9 but shy of March’s 10-month high of 52.2.

Russian President Vladimir Putin ratified an accord Saturday to set up a $100B reserve fund for the so-called BRICS nations, aimed at reshaping the Western-dominated international financial system centered around the IMF and World Bank. China is poised to provide the largest share of $41B to the pool, while Russia, Brazil and India will provide $18B each. South Africa is set to chip in the remaining $5B.

Negotiations between Greece and its international lenders over reforms to unlock bailout aid have made headway and an agreement could be closer this month, a government official said on Sunday. Talks between Athens and the troika will resume today and are expected to continue through Wednesday. Greece owes the next repayment of its debt package to the IMF on May 12.

U.S. companies have issued a record $39B of bonds in 2015 that mature in more than three decades, more than five times the amount sold in the same period last year, according to data compiled by Bloomberg. Treasurers are embracing what may be their last opportunity to lock in cheap long-term funding costs before the Fed raises rates, while investors are snapping up the longer-dated securities because they offer a higher yield over shorter-term debt.

Stocks

Charter Communications (CHTR) is rumored to be heading toward a potential merger with Time Warner Cable (TWC) again, but is now opting for a more amicable approach compared to last year’s unsolicited bid.

Looking to squeeze more value out of a series of long-neglected aluminum and nickel assets, BHP Billiton’s (BHP) shareholders are expected to approve the biggest ever spin-off in the mining industry on Wednesday. The new company, South32, risks a tough May 18 debut on the Australian bourse, with investors nervous about weak commodity prices, short mine life spans and declining ore grades.

McDonald’s will formally introduce its turnaround plan on Monday with a video, press release, and conference call with executives. While there have been some hints over the last few weeks over what measures McDonald’s (MCD) has in mind to stoke sales growth, today’s announcement could include some unexpected initiatives.

General Motors (GM) aims to grab at least 5% market share in India within the next decade, as it sees that market overtaking Japan as the world’s third largest. GM, which is losing money in India even after 18 years there, will unleash a product blitz aimed at reviving slumping sales in the country and make India a new global manufacturing and export hub. The move will also take some of the strain off production in South Korea, where labor costs have risen by nearly half in just five years.

The U.S.’s two largest food distributors, Sysco (SYY) and U.S. Foods, and the Federal Trade Commission will square off in a Washington federal court tomorrow, in a seven-day hearing that will decide the fate of their planned merger. The FTC filed suit in February to block the merger after investigating it for more than a year, arguing that the deal would eliminate significant competition and create a dominant national broadline food service distributor.

SAP (SAP) said it hasn’t ever considered acquiring online rival Salesforce.com (CRM). Many rumors have been on the loose since reports first surfaced last Wednesday stating Salesforce had been approached by a potential acquirer.