Market Snapshot
Asia: Japan +0.5% to 20615. Hong Kong +0.4% to 24514. China -1.6% to 3695. India +0.5% to 28223.
Europe: London +0.4%. Paris +1.3%. Frankfurt +1.3%.
Futures: Dow +0.2%. S&P +0.4%. Nasdaq +0.4%. Crude +0.6% to $46.00. Gold -0.6% to $1084.50.
Ten-year Treasury Yield +3 bps to 2.25%
Economic News
7:00 MBA Mortgage Applications
8:15 ADP Jobs Report
8:30 International Trade
8:30 Gallup U.S. Job Creation Index
9:45 PMI Services Index
10:00 ISM Non-Manufacturing Index
10:30 EIA Petroleum Inventories
Key earnings before the open
AMSC, ANSS, ARIA, ARQL, ATHM, ATRO, AVA, AVT, BLT, CEQP, CHK, CLDT, CLH, CMLP, CONE, CRK, CRME, CSTE, CSTM, CTSH, D, DAVE, DISCA, DISH, DNOW, DNR, EE, ENBL, FI, GDP, GTN, HCA, HFC, HSC, ICE, INXN, KATE, KELYA, KERX, LDOS, LG, LINC, LIOX, LL, LPLA, MEMP, MSI, MSO, MWE, PCLN, PWR, RDC, RL, SALE, SBGI, SCMP, SE, SNAK, SODA, SPAR, SPB, SUP, TMHC, TWX, USAC, VC, VLP, VOYA, VSI, WCG, WD, WEN, WIX
Key earnings after the close
ABX, ACAS, ACXM, AEGR, AGU, ALB, AMTG, ANDE, AREX, ARNA, ATO, ATSG, AVG, AWK, AXLL, BEE, BGC, BREW, BRKR, BWXT, CBS, CCRN, CF, CJES, CLNE, CLR, CNAT, CODI, CORT, COUP, CPE, CSII, CSLT, CTL, CUTR, CXW, DCO, DNB, DPM, DXCM, ECHO, ECOL, ENS, EQC, ETE, ETP, FANG, FLT, FMC, FNGN, FOXA, FRT, FTD, FUEL, GBDC, GDDY, GMCR, GPOR, HABT, HDP, HI, HIVE, HLF, HR, IAG, ICPT, IL, IRWD, ITRI, JACK, JAZZ, JONE, KND, KW, LGCY, LHCG, LNT, MCHX, MED, MELI, MG, MITT, MNTX, MRIN, MRO, MUSA, NHI, NKTR, NLY, NOG, NP, OME, OPK, OSUR, PACB, PDLI, PFMT, PGTI, PHH, PMT, PNNT, POWR, PRI, PRU, PRXL, PSIX, RAIL, REG, RGLD, RIG, RLD, RP, RST, RYN, SBY, SD, SGI, SGMO, SGY, SHOR, SLF, SQNM, SSNI, STR, SUN, SWM, SXL, TCAP, TLLP, TRNX, TRQ, TS, TSLA, TSO, TTEC, TTMI, TTPH, TUMI, UHAL, UIL, VVC, WGL, WPX, WSR, WTI, WTW, XNPT, XPO, ZU
Markets
Global stocks rose Wednesday as investors waited for an employment report at the end of the week that is likely to shed light on whether the U.S. economy is ready for higher interest rates. Meanwhile, Global bond yields are also on the rise after Atlanta Fed President Dennis Lockhart said it would take “significant deterioration” in the U.S. economy for him to not support a rate hike in September. Lockhart’s opinion is especially notable as he’s considered a centrist on the FOMC whose views typically mirror the consensus. Tracking similar movement in U.S. treasuries, German 10-year yields +3 bps to 0.66%, rebounding from a two-month low hit on Tuesday. The dollar index is also getting a boost, up 0.2% to 98.23 – its highest since April 23.
According to a new IMF report , more “significant work” in analyzing data is needed before deciding whether to grant the renminbi reserve currency status. IMF staff members also suggested that a decision could be postponed by nine months, until September 2016. Since a rejection five years ago, China has been pushing for the yuan to join a list of currencies, including the dollar, pound, euro and yen, that make up the lender’s Special Drawing Rights basket.
China’s services sector showed continued strength in July despite a steep selloff in the country’s stock market. The Caixin China services purchasing managers index rose to 53.8, up from June’s 51.8 – the highest reading since August 2014. The figure marks a sharp contrast with Monday’s release of manufacturing data, which painted a darker picture of the world’s second largest economy.
A more upbeat tone is coming out of Athens, after Greece and its lenders stated they were optimistic they could could broker a multi-billion euro bailout within days. A funding deal worth up to €86B ($94.5B) must be settled by Aug. 20 – or a second bridge loan agreed – if Greece is to pay off €3.5B in ECB debt that matures on that day. Greek stocks are still in the red, but a lot milder than the previous sessions.
Stocks
Apple (AAPL) shares fell for the 10th time in 11 days on Tuesday, losing 3.2% to $114.64, and putting the stock further into correction territory. More than 120M shares were traded, the highest volume since January, as the sell-off erased $113B in paper wealth. The company also shot down a recent rumor that stated it was in talks with U.S. and European carriers about offering mobile phone services on an MVNO basis.
Netflix plans to start offering employees “unlimited” maternity and paternity leave through the first year after a child’s birth or adoption. Employees will be entitled to their normal salary during their time off. Meanwhile, Netflix (NFLX) shares surged 7.6% yesterday to an all-time record high, after the company announced it would offer service in Japan starting on September 2.
Are they, or aren’t they? Conflicting reports have surfaced over whether Monsanto (MON) and Syngenta (SYT) are still in merger talks. Some suggest that the two are close to a deal on price, while others state they are not even in negotiations at this time. Syngenta previously rejected Monsanto’s $45B takeover offer in June.
General Electric (GE) is diving deeper into cloud services with the debut of its Predix Cloud, the latest step in the conglomerate’s effort to gain business from data generated by machines. The company has been investing $500M annually in software due to CEO Jeff Immelt’s bet on developing analytics for the company’s industrial products. GE anticipates $6B in software revenue this year, up from $4B in 2014.
More Export-Import Bank woes are hitting U.S. industries. Boeing (BA) is now scrambling to find alternate financing for a satellite contract worth “several hundred million dollars” that was scuttled by the federal credit agency’s uncertain future. Commercial satellite provider ABS is said to have terminated the satellite order in mid-July, given the absence of U.S. export financing.
A massive blast rocked a Noranda Aluminum (NOR) plant in southeast Missouri on Tuesday, injuring about twenty workers and creating a plume of smoke that could be seen for miles. It appears that a molten metal explosion occurred in the cast house of the plant, where aluminum is converted into finished products. Noranda shares, which are already struggling with sinking aluminum prices, closed the day down 7.3%.
General Motors’ redesigned Chevrolet Volt model will get 53 miles of driving range on its battery pack before using any gasoline, a nearly 40% increase from the previous model’s 38-mile range. “We pushed to get every one-tenth of a mile we could,” said Pam Fletcher, GM’s (GM) chief engineer for electrified vehicles. The new Volt starts at $33,995, about $1,000 less than the current version.
As expected, Baxalta has formally rejected Shire’s (SHPG) $30B unsolicited offer, saying it significantly undervalued the company and “its attractive prospects for growth.” The all-stock transaction would have seen Baxalta (BXLT) shareholders receive 0.1687 Shire ADRs for each Baxalta share. BXLT +2.5% premarket.
After more than a decade under private equity ownership, Neiman Marcus has filed for a $100M initial public offering. It wouldn’t be the first time the department store chain prepared to head back to the stock market. Warburg Pincus and TPG filed for an IPO of the company in 2013.
China is setting up cybersecurity police units at major Internet companies, a move aimed at strengthening the government’s grip on the world’s largest population of Web users. The officers will be added to help boost defenses against crimes such as fraud and “spreading of rumors.” Beijing is also discussing a separate plan to build a national cyber safety net, enabling national and local governments to cut Internet access when needed. Related tickers: BABA, BIDU,TCEHY.