A Peek Into The Market Before Trading Starts
Pre-open
US stock futures rise today as it is widely speculated that the Fed will refrain from hiking interest rates. While futures on the Dow Jones Industrial Average climbed 44 points, those on the S&P 500 moved up 4.7 points to 1095.20. Meanwhile, Nasdaq 100 futures added 7.75 points to 1886.00.
A Peek Into Global Markets
All European markets have opened in the red today, after the downgrade of BNP Paribas by Fitch Ratings agency weighed on the markets. While the Stoxx Europe 600 fell 1.2%, FTSE 100 Index has slipped 1.41% in the early market trading.
The major Asian stock market indexes closed lower today, with Japan's Nikkei stock average losing 1.22%, Hong Kong's Hang Seng slipping 0.45% and Australia’s S&P/ASX 200 declining 1.11%.
Broker Recommendation
UBS cut Dr Pepper Snapple Group (NYSE: DPS) to “neutral” from “buy” as the investment firm believed that the valuation did not justify the previous rating. According to UBS, DPS has benefited from gains in the market share and one-time payments of more than $1.5 billion made by Pepsico (NYSE: PEP) and Coca-Cola (NYSE: KO). The current valuation of DPS is at a premium to that of KO and PEP. However, both the other firms have stronger growth potential in the emerging markets than Dr Pepper.
Breaking news
- Chevron (NYSE: CVX), the second-largest U.S. oil company, is partnering with embattled rival BP (NYSE: BP) to develop an exploration block in the South China Sea. To read the full story, click here.
- According to Reuters, the Obama administration is preparing to issue a new offshore drilling moratorium. The announcement comes after a U.S. judge ruled that President Obama's six-month drilling shutdown was too broad and arbitrary. To read the full story, click here.
- Rite Aid Corp (NYSE: RAD) narrowed its Q1 loss after cutting selling, general and administrative costs. The company also reiterated its forecast for fiscal 2011. To read the full story, click here.
- Standard & Poor's announced yesterday that CarMax Inc (NYSE: KMX) will replace XTO Energy Inc (NYSE: XTO) in the S&P 500 index after the closing bell on Friday this week. XTO’s takeover by Exxon Mobil Inc (NYSE: XOM) is expected to be completed by the same time. To read the full story, click here.
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