** EUROPE: IN PLAY TODAY **
- Earnings of note: Elan, BASF, Commerzbank, Deutsche Boerse, Boliden, Total,
Royal Dutch, Lonmin, MAN AG, UBS and Unilever.
- Total reported ex-item 1Q profit of E3.38bln (E3.23bln expected). 1Q refining
profit 4% to E650m, while upstream profit rose 33% to E2.4bln.
- Dassault Systemes reported a 1.3% rise in 1Q net income to E31.3m (E28.8m
expected) on revenue up 26.5% to E252m.
- Suez posted a 14.3% increase in its 1Q sales to E11.8bln. Like-for-like sales
rose 10.3%. In other news, details of the merger with GDF will be presented to
investors by December and the company forecasts savings from the combination of
E1.1bln a year by 2012.
- BASF posted a 10% rise in 1Q profit to E950m (E747m expected), up from E861m a
year earlier. Revenue rose 24% to E12.51bln. The company announced it was
confident the Engelhard shareholders would accept its bid.
- Commerzbank reported 1Q pretax profit of E959m (E855m expected), while trading
profit came in at E330m (E251m expected).
- UBS posted a record 1Q profit of CHF3.5bln (CHF3bln expected), up from
CHF2.63bln a year earlier mainly on fund management fees and trading. The bank
remains “confident” in its outlook even if conditions change.
- MAN AG said first-quarter profit surged as the company sold
more commercial vehicles, and cut production and labor costs.
Net income increased to 152 million euros ($192 million) from
54 million euros a year earlier. Sales rose 13 percent to 3.2 billion euros.
Profit beat the 92 million-euro median estimate of five analysts surveyed by
- Royal Dutch Shell Plc, Europe’s second-largest oil company, said first-quarter
profit rose on high oil prices as production was curbed by violence in Nigeria
and hurricane damage in the Gulf of Mexico. Net income rose 3 percent to $6.89
billion, or $1.05 a share, from $6.68 billion, or 99 cents a share, a year
** US MARKETS **
Dow -0.14%; Nasdaq -0.25%; S&P -0.41%; Soxx 1.24%; Russel2k 0.02%; DJAIG -1%;
10yr Bond 0.01%; 10yr Yield 5.14%; Crude future 72.12; Gold 666.15
¦ ConsDisc 0.12%¦ Industrials 0.1%¦ Materials -0.02%¦ Financials -0.14%¦
Technology -0.3%¦ Telecom -0.49%¦ ConsStaples -0.51%¦ Utilities -0.62%¦
Healthcare -1%¦ Energy -1.45%
** US HEADLINES **
- U.S. Productivity Probably Rose 3 Percent in First Quarter, Economists Say
- Crude Oil Falls for Second Day After Increase in U.S. Gasoline Inventories
- Yen Drops a Second Day After Tanigaki Says G-7 Didn’t Seek a Weaker Dollar
- Congress Moves Closer to Passing Lobbyist Plan Requiring More Disclosure
- Billionaire Carlos Slim Pushes Mexican Growth Plan That Aids His Companies
- Ferrari Fever Hits Persian Gulf as Oil Boom Finances Luxury Car Addiction
** US AFTER HOURS **
Prudential Financial reported 1Q/Mar EPS $1.38 ex-item ($1.33 expected), FY EPS
is seen at $5.4-5.6, based on an appreciation in the S&P 500 index of 2% per
quarter for the balance of the year.
Starbucks delivered 2Q/Mar EPS $0.16 ($0.14 expected) on revenue up 24.2% YoY to
$1.89bln ($1.87bln expected). Raised FY EPS guidance to $0.71-0.72 from
Electronic Arts announced 4Q/Mar EPS of $0.14 ex-item (0.09$ expected) on
revenue up 15.9% to $641m. The video-game maker cut its EPS and FY07 sales
forecasts due to delays in the release of new gaming consoles.
Priceline.com reported 1Q EPS of $0.19 (inline) and expects EPS ex-item this
quarter to reach $0.48-0.53, more than the consensus.
JDS Uniphase reported revenue for the 3Q of $314.9m and net income ex-item of
$3.7m. For the fourth quarter, ending June 30, JDSU expects revenue to be
** US: IN PLAY TODAY **
On Thursday, April same-store sales figures from more than 60 retailers as well
as more earnings reports will be the focal point. Before the bell, CVS Corp
(NYSE:CVS), DIRECTV (DTV), Eastman Kodak (EK), Goodyear Tire (NASDAQ:GT), International
Paper (NYSE:IP), KeySpan (KSE), Tesoro Petroleum (NYSE:TSO), and Tyco International (NYSE:TYC)
are among the most noteworthy blue chips scheduled to report. Notable names
reporting after the close include McKesson (NYSE:MCK), Conseco (NYSE:CNO), Nationwide
(NFS), Activision (NASDAQ:ATVI), Univision (Pending:UVN) and Las Vegas Sands (NYSE:LVS).
On the economic front, initial claims and a preliminary read on Q1 Productivity
will be released at 14:30 CET, but even though bond traders might not
necessarily turn a blind eye to the data, most will remain focused on Fridays
influential employment report.
** ASIAN MARKETS **
Nikkei closed; Kospi 0.4%; HSI -0.15%; Taiwan 1.42%; China 1.66%; India 0.91%;
Thailand -0.96%; Australia -1.34%
** ASIAN HEADLINES **
- Hyundai Motor First-Quarter Profit Falls 38 Percent, More Than Expected
- Singapore Telecom’s Fourth-Quarter Unexpectedly Climbs on India, Indonesia
- Asian Stocks Fall; Commodities Slump on Cheaper Oil, U.S. Rate Concerns
- KT Corp. First-Quarter Profit Unexpectedly Rises on Lower Marketing Costs
- Bank Indonesia Says It May Cut Rate by Quarter Percentage Point Next Week
- Telecom New Zealand’s Shares Slump on Government Plan to Regulate Network
- Indian Rupee Full Convertibility `Not on Horizon,’ Ministry Official Says
- Toyota Motor Might Have Avoided Sexual Harassment Lawsuit, Attorney Says
- Bank of China, State Lenders Accused of Lax Controls After Bank Bill Fraud