Daily Market Comment(3/2/2012)


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Dow -0.09% at 12705, S&P +0.11% at 1325, Nasdaq +0.40% at 2859, N225 -0.51% at 8831, HK +0.08% at 20756, AUS -0.39% at 4251

US markets advance for a second day, as investors awaited today's report to gauge the strength of the recovery in the world's largest economy. News flow was heavy with most investors focused on Bernanke's testimony in DC, January retail comps, the busy earnings calendar and US economic releases. Greek progress seemed to slow as once again it looks like a rift may be forming between what Germany is requesting and what the IMF feels Greece can do/provide. Financials and oil & gas outperformed while utilities and healthcare underperformed. Sector Performance: Energy +0.48%, Financials +0.46%, Staples +0.3%, Tech +0.25%, Telecom +0.1%, Industrials -0.1%, Discretionary -0.1%, Utilities -0.3%, Healthcare -0.4%, Materials -0.5%. Oil -1.1% at $96.56. VIX -3% to the 17.98 level. US Bonds saw little change to yields with 10 yr at 1.82% and 30 yr at 3.01%. Internet and social media companies rose after Facebook filed to raise $5bln in IPO, Groupon +7.3%. Cummins +7.1% beats Q4 estimates, sees total revs increasing 10% in FY12. Electronic Arts +6.5% video game publisher reports Q3 eps +70% QoQ. Green Mountain Coffee +24.1% on earnings, Walmart to sell Esio machine. Kellogg +2.7% modestly beats estimates, reaffirms outlook. Mastercard +6.3% beats EPS, reports in line revenue. AK Steel -5.9% BofA downgrade to underperform. Abercrombie & Fitch -13.1% and Boston Scientific -4.1% on numbers. Cigna -3.6% misses estimates, guides below consensus. Starwood Hotels -1.7% earnings slightly weaker. JDS Uniphase -7% margin concerns offset better than expected Q2. Merck -0.3% beats EPS, but misses revenue estimates. Pulte Home -1.3% misses ests, unexpected $40m mortgage putback charge. Macro - US non-farm payrolls, US Unemployment report, Factory orders, ISM Non-mfg Index.

Asia: Korea -0.60%, Taiwan +0.29%, HK +0.08%, AUS -0.39%, China +0.77%, India +0.14%, Japan -0.51%
Asian markets trading mixed ahead of the US monthly employment report and awaiting clarity on the Greek debt swap deal. Hutchison to buy Orange Austria for €1.3bn.

Europe:
Misys confirms it is in prelim talks with Temenos by way of an all share merger
Private equity firm Goldsmith Group said one of its funds is considering buying all five refineries owned by insolvent Petroplus
Vinci wins five road maintenance contracts in the UK worth > EUR 1.7bn
TDC full year revs in line
Volvo numbers bang in line
OMV Q4 broadly in line
BT revs in line
LVMH in line
Neste Oil big miss in refining
C Dior FY revs better
Statoil seeking to sell stake in Iraq Field to Lukoil
Imp Tobacco - Telegraph rpts BAT and Japan Tobacco could make joint bid
CHF: FT reports interim ch. Thomas Jordan, says policy makers are ready to buy "unlimited" foreign ccys if needed to protect their minimum CHF rate.
Spain - banks must find EUR50bn from profits and capital this year to finance a clean-up of their balance sheets or agree to merge with another bank by May to gain an extra year's grace, according to Luis de Guindos, Spain's economy minister (FT).
Croda new CEO says prioritise cash for research not buybacks
Petroceltic: Completes Enel farmout transaction. To receive $101m in 30 days.
IAG & Ryanair: Traffic stats due this afternoon
Irish 10 year @ 7%
European markets opening unchanged in early trading.