Today’s Markets
- In Asia, Japan +2.0% to 9694. Hong Kong +2.2% to 23684. China +1.4% to 2744. India +1.5% to 18503.
- In Europe, at midday, London +1.0%. Paris +1.5%. Frankfurt +1.9%.
- Futures at 7:00: Dow +0.9%. S&P +0.9%. Nasdaq +1%. Crude +1.9% to $102.48. Gold +0.1% to $1538.00.
Tuesday’s Economic Calendar
- 8:30 ISM New York Business Index
8:30 Chicago Fed Midwest Manufacturing Index
9:00 S&P Case-Shiller Home Price Index
9:45 Chicago PMI
10:00 Consumer Confidence
10:00 State Street Investor Confidence Index
3:00 PM USDA Ag. Prices
- Notable earnings after Tuesday’s close:PVH
Stocks rose around the world, paring their worst monthly performance since August, and the euro strengthened amid speculation nations will pledge more aid to Greece. The cost of insuring bank debt fell the most in six weeks, while U.S. index futures and commodities gained.
The MSCI World (MXWO) Index advanced 0.8 percent at 8:10 a.m. in New York, paring this month’s decline to 3.2 percent. Standard & Poor’s 500 Index futures rallied 0.9 percent. The euro climbed to a three-week high against the dollar, and the yen fell against its major peers. The yield on the 10-year German bund added seven basis points, while Greek yields slid 30 basis points. Oil increased for a second day and wheat dropped.
The world’s largest economy may be facing a growth problem.
After a disappointing first quarter, economists largely predicted the U.S. recovery would ramp back up as short-term disruptions such as higher gas prices, bad weather and supply problems in Japan subsided.
But there’s little indication that’s happening. Manufacturing is cooling, the housing market is struggling and consumers are keeping a close eye on spending, meaning the U.S. economy might be on a slower path to full health than expected.
“Whenever a stock price goes up as much as it does with LinkedIn, you assume the IPO was mispriced and the bankers screwed up,” said Mr Thiel, an investor in LinkedIn since its launch. “There continues to be a certain antipathy by Wall Street banks toward Silicon Valley companies where they don’t quite believe it’s real.”
LinkedIn was priced at $45 a share by Morgan Stanley, Bank of America Merrill Lynch and JPMorgan Chase, raising $352m for the company.
Our price estimate for Sprint’s stock stands at $5.84, implying a premium to market price.1) Mobile Internet – represents 46% of the company’s stock value
Sprint sells data plans to its customers that include texting, internet surfing and data downloads. The company charges a monthly fee, either prepaid or postpaid, for offering these plans. The usage of data has surged in the recent past and is expected to continue its growth.
2) Mobile Plans & Phones – represents 34% of the company’s stock value
Sprint sells voice plans and mobile phones to its customers. The voice plans are either sold on postpaid basis or prepaid. The company pays heavy subsidies to mobile phone manufacturers and therefore offers these products to its customers at low prices.
3) Land Lines – represents 19% of the company’s stock value
This business represents the voice and data communication services that are offered by Sprint to its customers over legacy fixed-lines. It also includes Sprint’s IP based services including VoIP.
Bonus asking New Yorkers what song they are listening to that second.