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Reports US

US stock market, economy and companies update (June 13, 2014)

June 13, 2014, Friday, 20:02 GMT | 15:02 EST | 23:32 IST | 02:02 SGT
Contributed by Trade The News


- Trading has been volatile this morning as indices dipped into and then out of negative territory after two sessions of losses. As of writing, the DJIA is up 0.30%, the S&P500 is up 0.30% and the Nasdaq added 0.42%.

- US producer prices unexpectedly fell in May as costs declined broadly, complicating the picture for inflation watchers. The May numbers slipped lower from April +0.6% m/m gain, which was the biggest sequential move in the series in a year and a half. Analysts caution that the Labor Department revamped the series at the beginning of 2014 to include services and construction, only adding to the inherent volatility of the measure.

- WTI crude probed $107.60 last night and earlier this morning, but has come off its highs to trade around $106.60 as of writing. Brent has been as high as $114.69. Fighting rages in Iraq as ISIS continues its advance upon Bagdad. Grand Ayatollah Sistani has issued a fatwa calling on Shiites to join the armed forces en masse to fight ISIS. Analysts note this is a major development, as Sistani, the highest Shia cleric in Iraq, never went as far at any point during the civil war of 2005-07 to prompt the Shia to action. US Secretary of State Kerry said this morning that the US has discussed military operations and a timely decision to act should be expected. Meanwhile, Tehran said Iran was open to a shared role with the US regarding the situation in Iraq.

- Priceline.com reached a deal to acquire online reservations property OpenTable for $103/shr in cash, 46% premium to the prior close, in a deal valued at $2.6B. Priceline pledged to leave the current management in place to run OpenTable as an independent entity. The deal expands Priceline's stable of online properties, and looks very similar to the purchases of Booking.com and Kayak.com. Multiple other online names are gaining on the deal: YELP is up 13% while LIVE, GRUB and GRPN are up ~6%.

- General Motors has announced another four vehicle recalls this morning, bringing its grand total for 2014 to 38 recalls covering 16.5M units. The majority of today's recall involves 512K 2010-14 Chevrolet Camaros (all of the current generation of the model) for ignition switch problems. The other three include 65K vehicles for various issues. GM is recalling the Camaros because a driver's knee can bump the key and cause it to inadvertently move out of the run position, turning off the engine. Sound familiar? According to GM, this ignition system is unrelated to one used in Chevrolet Cobalts that caused the initial ignition switch recall. Shares of GM are flat today but declined 2% yesterday.

- Among the other bigger movers today is tech name Finisar, down ~23% after bombing in its fourth quarter earnings report, missing top- and bottom-line expectations and guiding first quarter earnings well below. Apparel name Express is up 20% after Sycamore Partners disclosed a 9.9% stake and sent letter to the board about submitting a proposal to acquire the remaining shares in the company.

***Looking Ahead***
- (UK) UK Sovereign Debt Rating Published by S&P
- (IT) Italy Sovereign Debt Rating May Be Published by Moody's
- (FR) France Sovereign Debt Rating Published by Fitch
- (LV) Latvia Sovereign Debt Rating May Be Published by Moody's
- 12:00 (IS) Iceland May International Reserves (ISK): No est v 468B prior
- 15:00 (AR) Argentina May National Urban CPI M/M: 1.6%e v 1.8% prior
- 15:00 (AR) Argentina May Wholesale Price Index M/M: 1.6%e v 1.7% prior; Y/Y: No est v 26.7% prior
- (CO) Colombia Central Bank Monetary Policy Minutes


***Economic Data***
- (IE) Ireland Apr Trade Balance: €2.9B v €2.4Be
- (EU) ECB: 16 banks to repay total €3.7B in 3-Year LTRO Funds vs. €7.5Be
- (BR) Brazil Apr Economic Activity M/M: 0.1% v 0.1%e; Y/Y: -2.3% v -1.9%e
- (IN) India Forex Reserves w/e May 30th: $312.6B v $312.4B prior
- (IS) Iceland May Unemployment Rate: 3.6% v 4.1% prior
- (PL) Poland Apr Current Account Balance: €1.0B v €0.5Be; Trade Balance: €856M v €560Me
- (PL) Poland May M3 Money Supply M/M: 0.6% v 0.9%e; Y/Y: 5.3% v 5.6%e
- (PL) Poland May CPI M/M: -0.1% v 0.0%e; Y/Y: 0.2% v 0.5%e
- (US) May PPI Final Demand M/M: -0.2% v +0.1%e; Y/Y: 2.0% v 2.4%e
- (US) May PPI Ex Food and Energy M/M: -0.1% v +0.1%e; Y/Y: 2.0% v 2.3%e
- (CA) Canada Apr Manufacturing Sales M/M: -0.1% v +0.5%e
- (US) Jun Preliminary University of Michigan Confidence: 81.2 v 83.0e