A Peek Into The Market Before The Trading Starts
Pre-open movers
US stock futures are lower this morning, as China lifted the reserve requirement ratio for banks by 50 basis points. Futures on the Dow Jones Industrial Average declined 33 points to 11,143.00, while S&P 500 index futures lost 3.70 points to 1,194.00. Nasdaq 100 futures dropped 6.50 points to 2,127.75.
A Peek Into Global Markets
Negative sentiments ruled the European markets today. While STOXX Europe 600 Index has lost 0.78%, London's FTSE 100 Index moved down 0.91%.
Asian markets ended mixed, with Japan's Nikkei Stock Average adding 0.09%, Australia's S&P/ASX 200 moving down 0.11% and China's Shanghai Composite gaining 0.80%.
Broker Recommendation
Piper Jaffray is raising the price target on American Eagle Outfitters (NYSE: AEO) to $17, but is keeping its Neutral rating on shares after the company reported earnings.
In a note sent to clients, Piper Jaffray writes, "We maintain our Neutral rating on AEO shares, but believe improved FQ3 results possibly indicates an inflection point for the company. Most telling, we believe, was positive AURs and increased conversions in the highly promotional teen space. We believe that customers are not shying away from the company's slightly higher price points, that the brand's fashions remain on-trend, and that the company's new allocation systems are better aligning stock-to-sales. We hold to our Neutral rating as we watch the competitive Holiday season unfold, but are increasing EPS estimates in FQ4 and FY11 and moving our price target from $16 to $17 based on a 15x (formerly 14x) FY12E EPS of $1.14."
Shares of AEO gained 44 cents yesterday to close at $16.29, a gain of nearly 3%.
Breaking news
- Hibbett Sports, Inc. (Nasdaq: HIBB) announced on Friday morning that it beat consensus Wall Street estimates. To read the full news, click here.
- IntraLinks Holdings, Inc. (NYSE: IL) earlier today announced that it has filed a registration statement with the Securities and Exchange Commission for a proposed follow-on public offering by IntraLinks and certain selling stockholders of an aggregate of 9,000,000 shares of common stock. To read the full news, click here.
- Cooper Industries plc (NYSE: CBE) today announced the signing of an agreement to acquire Hernis Scan Systems AS, a Norway-based manufacturer of closed circuit television (CCTV) systems for use in harsh and hazardous environments, from Hernis' parent company, Vislink plc. To read the full news, click here.
- H.J. Heinz Company (NYSE: HNZ) today reported second-quarter operating income, net income and earnings per share. To read the full news, click here.
Read more from Benzinga's Markets.
