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Reports US

US stock market, economy and companies update (August 05, 2014)

August 5, 2014, Tuesday, 22:37 GMT | 17:37 EST | 03:07 IST | 05:37 SGT
Contributed by Trade The News


- US stock indices are in the red this morning, although the reasons for the selloff remain fairly opaque. As of writing, the DJIA is down 0.23%, the S&P500 is off 0.29% and the Nasdaq is down 0.10%.

- There were Italian media reports earlier in the European session about a significant number of Fiat shareholders exercising exit rights, a move that could potentially jeopardize the company's merger with Chrysler. Fiat called the reports unfounded and said they have received no notices of cash exit exercises.

- Target slashed its second quarter guidance due to higher-than-expected costs from the big 2013 data breach. In addition, weak retail industry conditions are hurting the firm, which cited flat comparable sales with lower-than-expected EBITDA margin driven by promotional markdowns, as guests continue to spend cautiously and focus on value in the current environment. Shares of TGT declined as much as 4% before recovering.

- Allergan took a shot at its hostile suitor Valeant Pharmaceuticals this morning, claiming that Valeant's second quarter report contains "inconsistencies and omissions." Among other things, Allergan asserts that the company provided misleading disclosures regarding sales for its top products and made contradicting statements about the injectable business sold to Galderma. Shares of both VRX and AGN are down more than 4%.

- Coach popped more than 5% after a very good earnings report, as both earnings and revenue exceeded expectations. North America comps sagged, however the international business saw continued growth, with Chinese comps up double digits. On the conference call, the firm reiterated its forecast for lower FY15 revenues, taking COH off its highs.

- Gannett disclosed plans to spin off its publishing business to shareholders and take full control of joint venture Classified Ventures LLC, which owns Cars.com, for $1.8 billion in cash. Gannett will buy out stakes held by Tribune Meida, McClatchy, A.H. Belo and Graham Holdings Company. MNI is up more than 5% on the news, while AHC is up more than 8%.

***Looking Ahead***
- 11:30 (US) Treasury to sell 4-Week Bills
- 10:00 (MX) Mexico Weekly International Reserves
- 16:30 (US) Weekly API Oil Inventories
- (US) Kansas, Michigan, Missouri and Washington Hold Primary Elections


***Economic Data***
- (PT) Portugal Q2 Unemployment Rate: 13.9% v 15.1% prior; 5th straight quarterly improvement
- (US) ICSC Chain Store Sales w/e Aug 1st: w/w +0.2%; y/y: +4.5%
- (CL) Chile Jun Economic Activity M/M: -0.8% v +0.1%e; Y/Y: 0.8% v 2.0%e
- (US) Redbook Retail Sales w/e Aug 1st: +-4.6% y/y, July MTD: -0.4% m/m; July MTD: +3.9% y/y
- (MX) Mexico July Consumer Confidence Index: 90.5 v 93.0e
- (BR) Brazil July Services PMI: 50.2 v 51.4 prior
- (EU) Weekly ECB Forex Reserves: €213.3B v €213.3B prior
- (BR) Brazil Central bank Gov Tombini at Senate hearing for economic affairs
- (US) July Final Markit Services PMI: 60.8 v 60.8e
- (US) July ISM Non-Manufacturing Composite: 58.7 v 56.5e
- (US) Jun Factory Orders: 1.1% v 0.6%e
- (US) Aug IBD/TIPP Economic Optimism: 44.5 v 47.3e