Net worth of U.S. family plummets. The net worth of the American family plunged 39% from 2007-2010 to $77,300, the lowest since 1992 as the financial crisis destroyed 18 years of gains. Leading the decline was a 42.3% dive in the average equity in Americans' homes. "What you see is an economy that’s really very, very stressed for the bottom 60%-70%,” Streettalk's Lance Roberts tells Bloomberg. Now read: Housing Optimists May Have To Wait Another Decade »
Spanish, Italian yields well into danger territory. Yields on 10-year Spanish and Italian bonds have continued yesterday's climb, which came after the euphoria over Spain's bank bailout dissipated. Spain was +15 bps to 6.65% and Italy +10 bps to 6.13%, although Monument Securities' Marc Ostwald argues that the two countries aren't comparable. "Italy is in fact rather like Japan rather than...Spain, Ireland, Portugal, let alone Greece." (Quoted by the FT) Now read: Bond Vigilantes In Spain Send A Message »
JPM was aware of London risks two years ago. JPMorgan's (JPM) top brass was alerted to the risks emanating from the bank's London trading desk as long as two years ago, the WSJ reports. And last year, the firm's CIO executives set in a plan to unwind some big trades - but the rollback was botched even then. Jamie Dimon's Wednesday date with Congress is looking more interesting. Now read: When To Buy JPMorgan? »
Top Stock News
Berkshire's NetJets to buy 425 aircraft for $9.6B. Berkshire Hathaway's (BRK.A, BRK.B) NetJets has placed $9.6B in purchase orders with Bombardier (BDRAF.PK, BDRBF.PK) and Cessna for 425 new aircraft. NetJets CEO Jordan Hansell is betting on a rebound in luxury flights after predecessor David Sokol cut the size of the fleet to cope with lower demand. Now read: Which Airlines Are Positioned For Success? »
Loophole could provide MF execs with escape route. Most of the senior executives at MF Global (MFGLQ.PK) weren't registered with the CFTC and therefore can't be charged with supervision failures related to the firm's collapse. Such failures are often easier to demonstrate than deliberate wrongdoing, legal experts say. However, Jon Corzine was registered. Now read: Regulatory Responses to Creative Destruction »
Apple signs with TomTom after ditching Google Maps. Apple (AAPL) has signed a global mapping-data agreement with TomTom (TMOAF.PK), one day after saying that it was ditching Google Maps for its own functionality, which features 3D models of cities and turn-by-turn navigation. At its developer conference, CEO Tim Cook also unveiled Apple's expected MacBook refresh and Facebook (FB) integration in iOS 6. Now read: Apple Intensifies War On Google »
Microsoft thought about buying Nokia. Microsoft (MSFT) considered making an offer for Nokia (NOK) in late 2011 and examined the company's books, but both parties decided against a sale, The Register reports. The site speculates that Microsoft would prefer to see Nokia, which is hemorrhaging cash, become cheaper before making a bid. Nokia fell 8.3% yesterday after Samsung shot down rumors of takeover interest. Now read: Why We Have Turned Positive On Microsoft »
Sanofi's Lantus cleared of cancer concerns. Sanofi's (SNY) Lantus artificial insulin doesn't raise the risk of cancer, four new studies suggest, blunting worries raised by research in 2009. Lantus is the top-selling insulin in the U.S. and Sanofi's leading product.
Sara Lee unit starts trading in Amsterdam. Sara Lee (SLE) has listed its coffee and tea unit, D.E Master Blenders, on the Amsterdam exchange at a market value of €4.7B ($5.9B). Sara Lee shareholders have received one share in D.E for every Sara Lee share.
Agrium upbeat about Q2. Agrium (AGU) expects Q2 EPS to be "near or at the top end" of its guidance range of $4.18-$4.78 (consensus is $4.57), citing the strong performance of its crop input business, high global grain prices, and a favorable supply/demand situation for nutrients.
TI crystallizes outlook. Texas Instruments (TXN) has narrowed its Q2 guidance ranges to EPS of $0.32-$0.36 vs. consensus of $0.41 and revenue of $3.28B-$3.42B vs $3.35B.
Top Economic & Other News
Japan taps doves for BOJ board as IMF calls for more easing. Japan has nominated two Bank of Japan board candidates, Nomura's Takahide Kiuchi and Morgan Stanley's Takehiro Sato, who have indicated their support for more stimulus. The BOJ has been under political pressure to carry out further loosening, while the nominations come as the IMF calls on Japan to pursue "powerful monetary easing" to meet its inflation goal of 1%.
Commerce Secretary goes on leave following crashes. Commerce Secretary John Bryson has taken an indefinite medical leave after being involved in two car accidents at the weekend that have been linked to a seizure. Bryson's deputy, Rebecca Blank, has become acting secretary.
Global hiring trends mixed. Employers in 17 countries and territories, including in the U.S. and Japan, have strengthened their intentions to recruit workers, a Manpower survey shows. However, companies are only adding staff when they have to, with soft hiring reining in improved consumer spending and vice versa.
In Asia, Japan -1.0%. Hong Kong -0.4%. China -0.7%. India +1.2%.
In Europe, at midday, London +0.4%. Paris +0.3%. Frankfurt +0.6%.
Futures at 7:00: Dow +0.5%. S&P +0.4%. Nasdaq +0.5%. Crude -0.2% to $82.55. Gold -0.3% to $1592.70.
Today's economic calendar:
7:30 NFIB Small Business Optimism Index
7:45 ICSC Retail Store Sales
8:30 Import/Export Prices
8:55 Redbook Chain Store Sales
10:00 IBD/TIPP Economic Optimism
12:30 PM Daniel Tarullo speaks on Challenges in Global Finance: The Role of Asia
1:00 PM Results of $32B, 3-Year Note Auction
2:00 PM Treasury Budget
Notable earnings before today's open: FDS, KORS