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US stock market, economy and companies update (February 04, 2013)

Contributed by Trade The News

- Fallout from Spanish PM Rajoy's funding scandal and the improving electoral prospects of Berlusconi in Italy unnerved investors and pummeled European stock indices this morning. Yields on peripheral Eurozone debt popped to one-month highs. The softer-than-expected December US factory orders didn't help. The DAX and CAC are at session lows down 1.5% a piece, while the S&P500 and DJIA are down around 0.8% a piece.

- EUR/USD is well off the 14-month highs around 1.3700 seen on Friday, dropping as low as 1.3550 in mid-morning trade. Spanish 10-year government bond yields rose to 5.399% while Italian yields were 9 around 4.457% mid morning.

- Shares of Herbalife declined more than 10% in the premarket after the New York Post reported that the FTC is investigating the company after receiving nearly two hundred complaints about the firm over recent years. Shares of HLF have come off lows and are around -5% as of writing.

- Acme Packet is being acquired by Cisco for $29.25/share in cash, in a deal valued at $1.7B. Oracle emphasized that the firm's network management solutions would help the company transition to all-IP data delivery.

- Investors are selling GCI despite its seemingly positive Q4 earnings report. Note that after correcting for the extra week in the quarter and the outsized impact of political advertising, the firm's numbers don't look so rosy. GCI is down 5% or so.

- Sysco is also trading lower despite apparently solid headline numbers. Net profits fell on a y/y basis, and before adjustments earnings missed expectations. SYY is -3.7% this morning.

***Looking Ahead***
- 11:00 (US) Fed to buy $2.75-3.50B in bonds
- 11:30 (US) Treasury to sell combined $60B in 3-Month and 6-Month Bills
- 16:00 (CO) Colombia Jan Producer Price Index M/M: No est v -0.7% prior; Y/Y: No est v -3.0% prior
- 16:45 (NZ) New Zealand Q4 Average Hourly Earnings Q/Q: 0.4%e v 1.4% prior
- 16:45 (NZ) New Zealand Q4 Private Wages Excluding Overtime Q/Q: 0.6%e v 0.5% prior; Including Overtime Q/Q: 0.5%e v 0.5% prior
- 22:20 (AU) RBA Interest Rate Decision: Expected to leave Cash Target unchanged at 3.00%

***Economic Data***
- (SG) Singapore Jan Purchasing Managers Index: 50.2 v 48.8e; Electronics Sector Index: 49.9 v 47.1e
- (US) Jan ISM New York: 56.7 v 54.3 prior
- (US) Dec Factory Orders: 1.8% v 2.3%e
- (DK) Denmark Jan Foreign Currency Reserves (DKK): 495.6B v 504.0B prior