News Summary for July 12, 2011
This is your Benzinga news summary and traders' outlook for Tuesday, July 12, 2011, covering headlines from overnight and Tuesday's pre-market session.
Today in domestic pre-market trading, U.S. equity futures and the Euro are trading lower as fears continue to spread on European debt worries. This comes after yields of Italian and Spanish bonds rose to record levels.
Overseas, European markets were lower on the session as the case for contagion worries spread across Europe. Britain's FTSE 100 was down over 1% and France's CAC 40 dropped over 2% on the session. Asian stocks were lower as well. China's Shanghai Index fell over 1.5%, Japan's Nikkei 225 fell over 1%, and Hong Kong's Hang Seng Index dropped over 3%.
On the economic calendar today, the U.S. trade balance for the period of May is set to be reported at 8:30 a.m. The Street is expecting a trade deficit of $44.1 billion. IBD/TIPP Economic Optimism Index for July is due at 10:00 a.m.
On the commodity front, gold futures are lower by 0.25% and silver futures are down over 1.5% in pre-market trading. Energy futures are also trading lower with crude oil and gasoline futures down over 1%; however, natural gas futures are flat on the session. Finally, copper futures are trading down 0.5% on the session.
On the earnings front, Alcoa (NYSE: AA) reported second quarter EPS of $0.32 on revenues of $6.59 billion; The Street was looking for $0.34 per share on revenues of $6.34 billion. The company also reaffirmed its projection for 12% growth in global aluminum demand for 2011.
Also, Novellus Systems (NASDAQ: NVLS) reported second quarter EPS came in at $0.79 on revenues of $350.2 million; The Street was looking for $0.77 per share on revenues of $352.1 million. Shares fell after-hours after the company said that it now sees third quarter revenues between $300 million and $340 million. This compares to estimates of $362.98 million.
Finally, Wolverine World Wide (NYSE: WWW) reported second quarter EPS of $0.48 on revenues of $310.1 million; The Street was expecting EPS of $0.46 on revenues of $294.3 million.
In corporate news, NCR Corp (NYSE: NCR) announced a definitive agreement to acquire Radiant Systems (NASDAQ: RADS) for $28.00 per share, totaling $1.2 billion. This was a 30% premium to Radiant System's closing price on Monday.
Finally, Microchip Tech (NASDAQ: MCHP) updated fiscal 2012 net sales guidance to be down 1.5%. The company's previous guidance was for an increase of 1-6%. Shares fell over 8% after-hours.
This concludes your news summary for July 12, 2011.
