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Reports US

US stock market, economy and companies update (August 11, 2014)

August 11, 2014, Monday, 16:20 GMT | 11:20 EST | 19:50 IST | 22:20 SGT
Contributed by Trade The News

- Equity markets in Asia, Europe and the US are seeing very solid gains on Monday, buoyed by decent China inflation numbers and a big gain in the Nikkei, plus some wishful thinking regarding "geopolitical de-escalation." As of writing, the DJIA is up 0.42%, the S&P500 is up 0.53% and the Nasdaq is up 0.99%.

- In Ukraine, government forces are tightening the noose around rebel strongholds of Donetsk and Lugansk. Meanwhile, diplomacy continues as Russia presses to send a humanitarian convoy to the rebels, possibly in coordination with the International Red Cross. The US and Kiev are said to be willing to consider the idea, however it remains unclear whether this is just a pretext for a direct Russian intervention or not. NATO Chief Rasmussen confirmed this morning that there has been no drawdown of Russian forces from the border as reported late last week. In Iraq, former PM Maliki continues to resist stepping down even after the president has nominated a Shiite rival to form a new government, with many unconfirmed reports that a coup may be under way in Baghdad.

- Among the biggest movers this morning are Kinder Morgan and its various affiliates, Kinder Morgan Energy Partners, El Paso Pipeline Partners and Kinder Morgan Management. All four names rocketed higher after Kinder Morgan announced a $70 billion megadeal to consolidate the four firms and abandon a master-limited partnership structure, however shares of the four names have come well off their overnight highs. The new Kinder Morgan entity will pay out a very generous dividend of $2/shr in 2015, up 16% from this year.

- Venture Capital firm Andreessen Horowitz is investing $50 million in BuzzFeed, the social news and entertainment website. According to comments from an executive with the company, BuzzFeed reaches over 150 million people per month, is consistently profitable and will generate triple-digit millions in revenues this year. The funding values the firm around $850 million.

- Among the other movers this morning is MannKind, which struck a $925 million deal for Sanfi to distribute its Afrezza rapid-acting inhaled insulin product. MNKD gained 22% on the news, however it has given up about half of this gain as biotech analysts suggest the deal could have been better for MannKind. Food service giant Sysco is up 2.6% after reported solid second-quarter results. Tesla is up 5% on a Deutsche Bank upgrade to buy from hold.

***Looking Ahead***
- (MX) Mexico July ANTAD Same-Store Sales Y/Y: +1.0%e v -0.2% prior
- 11:30 (US) Treasury to sell 3-Month and 6-Month Bills
- 16:00 (US) Crop Condition Report
- 17:00 (CO) Colombia Jun Exports: $4.9Be v $5.5B prior
- 19:01 (UK) July BRC Sales Like-For-Like Y/Y: No est v -0.8% prior

***Economic Data***
- (BR) Brazil Aug IGP-M Inflation 1st Preview: -0.3% v -0.3%e
- (RU) Russia Q2 Advance GDP Y/Y: 0.8% v 0.7%e
- (CA) Canada July Housing Starts (Annualized): 200.1K v 193.0Ke
- (MX) Mexico Jun Industrial Production M/M: -0.2% v +0.2%e; Y/Y: % v 2.1%e; Manufacturing Production Y/Y: % v 4.0%e