MARKET ACCESS CENTER: MORNING REPORT
Ahead of the Bell: Dow futures are trading up 21 points and S&P futures are trading up 2 points. The major indices continue to hit fresh new highs, supported by better than expected economic data from the US and Europe. According to the European Commission data, euro zone economic sentiment improved more than expected in May and inflation expectations among consumers and companies rose for the first time since December. Consumer sentiment also rose across the region, as investors became more optimistic about job prospects, savings expectations and the general financial and economic situation.
• On the economic calendar today, no reports are due. The dollar is up against a basket of major currencies. Gold is trading at $1,265. Crude oil is currently trading at $104 a barrel
• Yesterday, stocks advanced as signs the economy is improving after consumer confidence and durable goods orders rose.
• On CNBC this morning, Byron Wien, Vice Chairman of Blackstone Advisory Partners LP, shared his thoughts on the outlook for the markets. Wien said there is a tremendous amount of turbulence around the world right now and there is nowhere else to put your money to work other than in US treasuries; this is why we are seeing higher yields. He is seeing a pickup in capital expenditures but we could see several more years of slow growth. The Federal Reserve is expected to continue the pace of its bond buying program as the economic data improves.
• Have a great day.
Tuesday's Close
DJIA up 69.23 pts/+0.42%/ 16,675.50
S&P up 11.38 pts/+0.60%/ 1,911.91
Nasdaq up 51.26 pts/+1.22%/ 4,237.07
Wednesday's Futures
Dow Futures up 21.00 pts/+0.15%
S&P Futures up 2.25 pts/+0.14%
Nasdaq Futures up 3.75 pts/+0.09%
Overseas Markets
FTSE +0.06%
CAC 40 -0.05%
NIKKEI 225 +0.24%
HANG SENG +0.59%
Overseas: Global stock markets are mixed today. European and Asian markets are higher buoyed by better than expected economic data from the US and Europe.
Economic Reports: None.
Top Headlines
• Valeant Pharmaceuticals International Inc. (VRX) raised the cash component of its offer for Allergan Inc., (AGN) valuing the firm at $49.44 billion. Valeant is offering to pay $58.30 per Allergan share in cash, about $10 higher than its previous offer of $48.30.
• Propylene producer PetroLogistics LP (PDH) said it will be taken private by a unit of Koch Industries Inc., in a deal worth $2.1 billion, including debt. Flint Hills Resources LLC will pay $14.00 per in cash for each PetroLogistics unit.
• GlaxoSmithKline Plc (GSK) retreated after becoming the subject of a criminal investigation. The investigation follows allegations in China that Glaxo’s employees bribed doctors, hospitals and medical associations to increase sales.
Commodities/Currency
Gold: down $1.10 to $1,265.30
Oil: up $0.12 to $104.17
EUR/USD 1.3615 -0.0020
USD/JPY 101.9350 -0.0870
GBP/USD 1.6750 -0.0059
Volatility Index (VIX): As of the close of business Tuesday, May 27, 2014 the VIX is down 0.21 at 11.51.
Companies Reporting Quarterly Earnings
• Michael Kors Holdings (KORS): FQ4 EPS of $0.78 beats by $0.10.
• Brown Shoe Company (BWS): Q1 EPS of $0.35 beats by $0.04.
• Bank of Montreal (BMO): FQ2 EPS of $1.63 beats by $0.10.
Today's Opening and Closing Bells
AerCap Celebrates Completion of Acquisition of International Lease Finance Corporation and will ring the Opening Bell.
The Toro Company to Celebrate 100 Years at the NYSE, Chairman and CEO, Michael Hoffman will ring the Closing Bell.
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