Market Snapshot
Asia Markets: Japan +0.7% to 18467. Hong Kong unchanged at 24837. China closed for holiday. India -0.9% to 2895.
European Markets: London -0.3%. Paris +0.2%. Frankfurt +0.4%.
Futures: Dow -0.2%. S&P -0.2%. Nasdaq flat. Crude -2.3% to $49.66. Gold -1% to $1192.70.
Ten-year Treasury Yield +2 bps to 2.13%
Economic News
8:30 Chicago Fed National Activity Index
9:45 PMI Services Index Flash
10:00 Existing Home Sales
Key earnings before the open:
AER, AWI, AXL, CIE, CTB, DISH, DNOW, EDR, KOS, PACD, STAG
Key earnings after the close
AGU, ATRC, AXTI, CHGG, DEPO, DK, EIGI, ESRX, FIVN, IVR, KAMN, LNT, NLS, OHI, OKE, OKS, PDLI, QUAD, ROSE, RWT, SF, SNHY, SSW, THC, TRAK, TXRH
Markets
European stock markets rose as Euro zone finance ministers agreed on Friday to extend Greece’s bailout deal for four months, provided it comes up with a list of economic reforms by today. Japan’s Nikkei 225 extended 15-year highs today after U.S. equity hit new highs on Friday. This is the Nikkei’s highest close since April 2000.
U.S. markets were set to open slightly lower this morning after a big runup on Friday. While the Street attributes the weakness to anticipated weakness in U.S. existing home sale numbers, the move came earlier and appears more likely to be just a brief spate of profit taking after last week’s run to new highs.
West Coast ports are functioning again after operations resumed Saturday evening. “Just based on the mathematics, it will be about three months before we return to a sense of normalcy,” said Gene Seroka, executive director of the Port of Los Angeles. A tentative agreement on a new five-year labor contract was struck late on Friday, but the contract still needs to be ratified by members.
Just a week after the ceasefire agreement in Ukraine, the U.S. and Britain are discussing further sanctions on Russia in response to repeated violations of the agreement. Russia’s credit rating was cut to below investment grade by Moody’s Investors Service on Friday, who joined Standard & Poor’s in ranking the country’s debt as junk.
Stocks
HSBC (HSBC) says profit fell 17% to $18.7B in 2014, down from $22.6B the year before and below the average analyst forecast of $21B. The bank also cut its target for RoE, sighting the impact of last years fines and the allegations about tax evasion in its Swiss operations.
Apple has announces a €1.7B plan to build and operate two data centers in Ireland and Denmark that will power its online services for customers across the continent. The facilities will run entirely on clean, renewable energy sources, and are expected to begin operations in 2017.
SodaStream (SODA) introduces a new line of fruit flavorings last month to tap into the enhanced waters market.
Valeant Pharmaceuticals (VRX) agrees to buy Salix Pharmaceuticals (SLXP) for around $10.1B, or $158 per share in cash. The merger is expected to yield more than $500M in annual cost savings within six months, and will transform Valeant into a multibillion-dollar market for drugs treating gastrointestinal disorders.
Honda (HMC) CEO Takanobu Ito will step down in late June, making way for Managing Officer Takahiro Hachigo after six years in the top post. Ito has come under fire from both long-term local suppliers and former Honda executives after the automaker hit a rough patch over the past year with quality problems tied to flawed Takata (TKTDY) airbags and the new hybrid systems of its Fit compact car and Vezel SUV.