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Reports US

US stock market, economy and companies update (June 02, 2014)

June 2, 2014, Monday, 16:16 GMT | 11:16 EST | 19:46 IST | 22:16 SGT
Contributed by Trade The News

- US equities dipped into the red from the open of cash trade, and the move down was reinforced by the disappointing May ISM manufacturing data. Note that the new orders component declined to its lowest level since January. As of writing, the DJIA is down 0.10%, the S&P500 is down 0.24% and the Nasdaq is down 0.61%.

- As expected, President Obama unveiled proposals to slash carbon emissions for existing power plants. The president promised to use his executive authority propose new EPA rules that would cut carbon emissions from the country's coal fired plants by up to 30% by 2030. The new rule is expected to be final next year, setting the first national limits on CO2 and bypassing Congress. The proposal would give states some flexibility in meeting the targets.

- Apple is holding its WWDC developer conference in San Francisco today. Analysts expect the company to roll out a redesigned version of its OS X Mac operating system, and possibly refresh the Mac lineup with new models. There may be a sneak peak at the next version of iOS, but few expect to see anything regarding the upcoming iPhone 6. There may also be other revelations about the company's upcoming health app or wearable device strategies. Shares of AAPL are in the red this morning.

- Shares of Broadcom soared more than 12% in the early going after the company reaffirmed its second quarter outlook and disclosed that it would be reviewing its strategic options for the cellular baseband business. This area is dominated by rival Qualcomm, and Broadcom is looking to back out of an area that would provide plenty of cost savings. Analysts were not terribly positive about the announcement, and shares of BRCM are down to +8% as of writing.

- Multiple drug names are making moves based on data out at the ASCO meeting in Chicago. Clovis is off nearly 9% after the firm's CEO told investors that "three or four" patients in phase I/II study of lung cancer drug CO-1686 are now taking insulin to control hyperglycemia caused by the drug. Puma Biotech is down nearly 25% after partner Glaxo disclosed its Phase III ALTTO study of anti-HER2 agents, lapatinib and trastuzumab, did not meet the primary endpoint.

- Life insurer Protective Life is up nearly 12% on press reports that Japan's Dai-ichi Life Insurance is preparing to it for over ¥500B (around $4.91B). This would represent the largest-ever acquisition of a foreign company by a Japanese life insurer.

***Looking Ahead***
- (RU) Russia May Reserve Fund: No est v $87.9B prior; Wellbeing Fund: No est v $87.6B
- (IT) Italy May Budget Balance: No est v -€10.1B prior
- 11:30 (US) Treasury to sell $48B in 3-month and 6-month Bills
- 12:00 (IT) Italy May New Car Registrations Y/Y: No est v 2.0% prior
- 13:00 (MX) Mexico May IMEF Manufacturing Index: 52.2e v 51.1 prior; Non-Manufacturing Index: 51.6e v 50.6 prior
- 14:00 (BR) Brazil May Trade Balance: $0.0Me v $506M prior; Total Exports: $20.8Be v $19.7B prior; Total Imports: $20.9Be v $19.2B prior
- 19:00 (KR) South Korea May CPI M/M: 0.1%e v 0.1% prior; Y/Y: 1.6%e v 155 prior; CPI Core Y/Y: No est v 2.3% prior
- 21:00 (CN) China May Non-manufacturing PMI: No est v 54.8 prior
- 21:30 (AU) Australia Apr Retail Sales M/M: 0.3%e v 0.1% prior
- 21:45 (CN) China May Final Manufacturing PMI: 49.7e v 49.7 prelim
- (JP) World Economic Forum in Japan

***Economic Data***
- (RO) Romania May International Reserves: $33.8B v $35.6B prior
- (DE) Germany May CPI Baden Wuerttemberg M/M: -0.2 v 0.0% prior; Y/Y: 0.9% v 0.8%
- (CZ) Czech May Budget Balance (CZK): -9.5B v +26.6B prior
- (DE) Germany May Preliminary CPI M/M: -0.1% v +0.1%e; Y/Y: 1.1%e v 1.3% prior
- (DE) Germany May Preliminary CPI EU Harmonized M/M: -0.3% v +0.1%e; Y/Y: 0.6% v 1.0%e
- (ZA) South Africa May Naamsa Vehicle Sales Y/Y: -9.2% v -10.7% prior
- (BR) Brazil May Manufacturing PMI: 48.8 v 49.3 prior; 2nd straight month of expansion
- (CA) Canada May RBC Manufacturing PMI: 52.2 v 52.9 prior
- (US) May Final Manufacturing PMI: 56.4 v 56.2e
- (US) May ISM Manufacturing: 53.2 v 55.5e; Prices Paid: 60.0 v 57.0e
- (US) Apr Construction Spending M/M: 0.2% v 0.6%e
- (MX) Mexico Apr Total Remittances: $1.98B v $2.0Be
- (ZA) South Africa May Naamsa Vehicle Sales Y/Y: No est v -10.7% prior
- (RU) Russia May Reserve Fund: No est v $87.9B prior; Wellbeing Fund: No est v $87.6B