• US stock market, economy and companies update (August 10, 2015)

    US futures surged into positive territory this morning and keep gaining ground in cash trading after Fed Vice Chair Fischer appeared to caution markets about the timing of rate hikes. The 10-year yield has gained nearly six basis points in risk-on trading. The DJIA, S&P500 and the Nasdaq gained over 1% each by the first hour of cash trading but have come off their highs.

    In a television interview before the open this morning, Fischer said that the Fed is hesitant to move on rates before it sees inflation as well as employment returning to more normal levels. Fischer highlighted that rising employment in an environment where inflation remains very low presents a very tricky problem for the Fed. In a note out overnight, JPMorgan wrote that the payrolls data was still consistent with a September liftoff, and warned that the firm continues to view short-term yields as underestimating both the timing and pace of the coming Fed rate hikes.

    Berkshire Hathaway reached a deal to buy Precision Castparts in a $37.2 billion deal, in a transaction valued at $235 per share in cash - a 21% premium to the stock's closing price on Friday. Precision Castparts manufactures some of the metal components that go into aircraft engines and industrial gas turbines. After announcing the deal, Warren Buffett said he was "done hunting elephants," closing out his hunt for a jumbo acquisition that began back in 2011. In addition, Buffett poured cold water on the idea that Berkshire's Heinz would consider buying Mondelez. Just last week, activist Bill Ackman's Pershing Square took a 7.5% stake in Mondelez and prompted the board to begin looking for a buyer.

    Shares of Aquinox Pharmaceuticals have seen some crazy trading on Friday and today. On Friday, shares spiked by up to 400% and surged up to 365% today. In a 13D filing out before the US open, investor Baker Brothers Advisors disclosed a 39.8% stake and the company published positive trial results for a drug that treats bladder pain syndrome. Trading has been halted at least six times this morning on volatility.

    ***Economic data***
    - 16:00 (US) Crop Condition Report
    - 17:00 (KR) South Korea July Import Price Index M/M: No est v 0.6% prior; Y/Y: No est v -14.0% prior
    - 17:00 (KR) South Korea July Export Price Index M/M: No est v 1.2% prior; Y/Y: No est v -2.2% prior
    - 18:00 (NZ) New Zealand July ANZ Heavy Truckometer: No est v 1.6% prior
    - 19:01 (UK) July BRC Sales Like-For-Like Y/Y: 1.0%e v 1.8% prior
    - 20:00 (SG) Singapore Q2 Final GDP Q/Q -4.6%e v -4.6% prelim; Y/Y: 1.6%e v 1.7% prelim
    - 23:45 (JP) Japan to sell 30-Year JGB Bonds

    ***Economic data***
    - (PT) Portugal Jun Trade Balance: -0.7B v -1.1B prior
    - (US) July Labor Market Conditions: 1.1 v 1.4% prior

    [I]Contributed by Trade The News[/I]
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