General News:
– General Electric (GE) and Microsoft (MSFT) are discussing buying the Down Jones. However, according to the Wall Street Journal, an agreement has not been reached.
– General Motors (GM) and Daimlerchrysler (DCX) may create an independent heath insurance fund to cut costs and obligations for health care, which total $114 billion.
– The Chicago Tribune reported that the retirement age crept up for the first time in one hundred years.
– Cleveland Fed President, Sandra Pinalto, said that the housing market has slowed the US economy and has yet to influence the consumer sector.
– PIMCO’s, Bill Gross, said that it is the Fed’s job to talk about inflation. He said that inflation will gradually fall below 2%, and that the Fed will remain on hold depending on the housing sector. Gross says that he still wants a rate cut in six months.
– Goldman Sachs is making positive comments on Brazil and Mexico, noting strong domestic economic growth. This could also have something to do with ethanol production.
– Gasoline prices drop for the first time since January.
Asia/Europe:
Asia:
– China’s trade balance widened to $22.5 billion in May to the third-highest monthly level on record. Exports rose 28.7%, stronger than expected, and imports rose 19.1%, slightly weaker than expected.
– China is injecting capital into the foreign reserve agency, which will now manage $200 billion in assets.
– There will be more government controls on foreign investment into the Chinese property sector.
– Japan’s Vice Foreign Minister, Mr. Fujii, noted that the economy is not in deflation and that GDP shows signs of recovering.
Europe:
– ECB member, Wellink, said that wages, oil and liquidity are the main risks to prices in Europe.
– The Dutch Foreign Minister warned that the rise in long term rates must be monitored closely, but said that rates are still low and of no great concern.
– French industrial production fell 0.8%, 1.7% was expected.
– Italian production fell 0.8%, 0.2% was expected.
Corporate News:
– iSupply says that the Qualcomm (QCOM) chip ban will have a minor impact on the global phone market.
– CEO of Alcoa (AA), Alain Belda, says he is reluctant to raise his company’s $28.3 billion bid for Canadian rival Alcan (AL), suggesting that the bid price is fair.
– IBM wants to buy Telelogic for $743 million in cash.
– Boeing (BA) receives a big order from Aeroflot, but according to the Seattle Times, the supplier, Vought, is behind on the Dreamliner program.
– Sony Entertainment (SNE) says it is adding a phone to the PSP game system.
– Yahoo (YHOO) received press today regarding rumors that shareholders want to oust CEO Semel out of the company.
– Apple (AAPL) says that it may create a movie rental business from iTunes.
– There could be a new smokeless tobacco product from Altria Group (MO) who owns Philip Morris USA.
– CDW (CDWC) reported a surge in sales, up 25.8%.
– Jos. A Banks Clothiers (JOSB) reported better than expected EPS.
– Penn National Gaming (PENN) loses a vote on expanding into West Virginia.
– Molson Coors (TAP) is pushing out convertibles worth $500 million.
– Pacific Ethanol (PEIX) is selling $250 million in equity.
Favorable Comments:
– UST (UST), H&R Block (HRB) and Western Digital Corp. (WDC) upgraded at UBS.
– Ingram Micro (IM) upgraded at CitiBank.
– Nike (NKE) upgraded at HSBC.
Negative Comments:
– Checkfree Corp. (CKFR) downgraded at Matrix.
– CBOT Holdings (BOT) downgraded at CSFB.
– AirTran (AAI) and United Airlines (UAUA) downgraded at Calon.
– Bearingpoint (BE) downgraded at Jeffries.
– International Paper (IP) downgraded at CIBC.
– NetFlix (NFLX) downgraded at JP Morgan.