** 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
(CVS), DIRECTV (DTV), Eastman Kodak (EK), Goodyear Tire (GT), International
Paper (IP), KeySpan (KSE), Tesoro Petroleum (TSO), and Tyco International (TYC)
are among the most noteworthy blue chips scheduled to report. Notable names
reporting after the close include McKesson (MCK), Conseco (CNO), Nationwide
(NFS), Activision (ATVI), Univision (UVN) and Las Vegas Sands (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