Good morning. Happy Tuesday.
The Asian/Pacific markets closed mixed with an upward bias. China gained 3% and Australia and Seoul rallied more than 1%. There were no big losers.
Europe is currently up across the board. Norway is up 3.3%, Italy up 2.3% and France, Germany, Austria, Switzerland and London are up more than 1%.
Futures here in the States indicate a moderate gap up open. Minutes before the open, Nas 100 futures are up 12.5 (0.99%) to trade at 1277.50 while SPX futures are up 7.75 (0.84%) to trade at 935.25.
From barchart.com ->> Leading European stocks higher today is the drop in inflation with the Euro-Zone CPI estimate for Dec falling to a more than two-year low of +1.6% y/y, the first time inflation has moved below the ECB’s 2% ceiling since Aug 2007 and providing the central bank enough cover to continue cutting rates at next week’s policy meeting. A rally in copper prices up to a 1-month high today is supporting mining companies Rio Tinto (+5.9%) and Xstrata (+8.3%). Royal Bank of Scotland Group Plc (RBS) fell 1.9% after Britain’s financial regulator lifted the short-selling ban on RBS and 33 other British financial companies that was in place since Sep 18. Supporting Asian stocks today is a rebound in chip prices, spurring optimism that Asian electronics makers will withstand the global recession. South Korean based Samsung rallied 4.6% today after benchmark chip prices soared to a 6-week high and Japan’s Nippon Electric Glass, the world’s third-biggest supplier of glass for liquid-crystal displays, soared 16% after Macquarie Securities forecast a rebound in monitor panel prices. Also supporting Asian stock prices today is the drop in the yen to a 1-month low against the dollar, aiding most Asian export based companies. Alternative energy-related companies gained on speculation government spending in the sector by the South Korean and Japanese governments will boost sales. South Korea’s “Green Deal” will produce 956,000 new jobs over the next four years, South Korea’s Ministry of Startegy and Finance said today, while Japan aims to create over 2 million jobs in enviromental technologies by 2015, according to the Nikkei newspaper. NGL Insulators Ltd., the world’s only producer of sodium-sulfur batteries used to store power generated by wind turbines and solar panels, jumped nearly 9% after a 10 billion yen sale of the batteries to the UAE. Russia’s OAO Gazprom said they have cut natural gas shipments to Europe through Ukraine to 74 million cubic meters, compared with 300 million normally and deliveries to the Balkans were halted at the Romanian border as a pricing dispute enters its sixth day and continues European supply disruptions.
Thailand’s central bank is predicting minimal economic growth for this year but not a recession.
Toyota (TM) is suspending production at all 12 of its Japan plants for 11 days over February and March, a stoppage of unprecedented scale for the nation’s top automaker as it grapples with shrinking global demand.
Macrovision (MVSN) has canceled its deal to sell the TV Guide Network and TVGuide.com for $255 million to Allen Shapiro and One Equity Partners, and will instead sell them to movie studio Lions Gate Entertainment (LGF) for the same price but better terms.
General Motors (GM) said Tuesday its sales in China rose 6 percent to 1.09 million vehicles in 2008, but growth slowed as consumers held back amid an economic downturn.
Continental Airlines (CAL) said Tuesday that its consolidated traffic, which includes both mainline and regional service, fell 6.7 percent in December as the airline flew 7.11 billion revenue passenger miles.
Huron Consulting Group (HURN) said Tuesday it has acquired Saudi Arabian consulting firm Nextmove for an undisclosed amount.
Chip maker Micrel (MCRL) said Tuesday it will slash about 6 percent of its work force as it lowered sales and profit estimates for its fourth quarter.
TradeStation Group (TRAD), a provider of an electronic trading platform, said Tuesday daily average revenue trade volume increased 22 percent in December.
AMC Entertainment, the nation’s second-largest theater operator, has completed its sale of Mexican subsidiary Grupo Cinemex to Entretenimiento GM de Mexico S.A. de C.V.
Business advisory firm FTI Consulting (FCN) said Tuesday it has acquired CXO for an undisclosed amount.
Md. Transportation Authority proposes truck toll rate increases, E-ZPass fee increases.
AirTran Airways, a unit of AirTran Holdings (AAI), said traffic climbed 2.3 percent in December and was up 9.6 percent for 2008.
ArvinMeritor (ARM) said in a regulatory filing that it’s temporarily cutting the pay of its top executives by 10 percent, citing worsening economic conditions.
Hawaiian Telecom, which filed for bankruptcy protection last month, says its pension fund is underfunded.
Dollar Thrifty Automotive Group (DTG) maintained its forecast of a fourth-quarter and full-year loss on Tuesday, but said preliminary estimates show it ended 2008 with a cash balance of more than $210 million.
Tom Ward, the chief executive officer of SandRidge Energy (SD) has sold 8.9 million shares of his common stock in the company to Tulsa businessman George B. Kaiser.
Moody’s Investors Service (MCO) cut Trump Entertainment Resorts Holdings (TRMP) probability of default rating, citing the company’s decision to delay a scheduled interest payment on some notes.
Amedisys (AMED) expects 2009 profit above forecasts, anticipates boost from past acquisitions.
Traffic at American Airlines (AMR) fell 8.2% in December from the year-earlier month.
Traffic at UAL (UAUA) fell 12% in December.
Cigna (CI) is cutting 1,100 jobs by mid year.
Dow Chemical (DOW) will seek legal, operational and financial actions to enforce its rights under a failed joint-venture deal with Kuwait’s Petrochemical.
According to Nielsen Online, Google (GOOG) continues to take search market share from Yahoo (YHOO) and Microsoft (MSFT).
Endo Pharmaceuticals (ENDP) is buying Indevus Pharmaceuticals (IDEV).
LDK Solar (LDK) cut its Q4 revenue outlook.
Gold is down 14% and Silver is down 1.7%.
Crude oil is up 1.14 to trade at 49.95.
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| DOWNGRADES |
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| EARNINGS | |
| before the open | WU, TREE, XTO, SWN, YRCW, BMC, AAPL, GOOG |
| during trading | none |
| after the close | KNOT, ENDP, CYBS, MGI, ATHN, GNW, NTAP, FE, JASO, PENN, TRV, CVH, CI, ACE, CAN, CB, XL, IDEV, ALL, AIG, HURN, ITRI, ISIL, ICE, NUE, DVN, NXY, MDRX, CWT, PSD, CELG, SMCI, QSII, MDT, CERN, ATHN |
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ECONOMIC RELEASES
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