Good morning. Here’s what you need to know.
- Asian markets were mixed in overnight trading with the Nikkei down 0.81 per cent, hitting a three-month low on concerns about Greece. Europe is selling off and U.S. stocks opened lower.
- Eurozone GDP came in flat for the first quarter, but German GDP climbed 0.5 per cent from the fourth quarter, while Italian GDP contracted 0.8 per cent on a quarter-over-quarter basis.
- Euro is diving after anti-bailout Panos Kammenos has announced that there is no deal on a new Greek unity government. Greece will likely face new elections in June. Bank of America answers the 5 most important questions about Greece >
- Foreign direct investment in China fell 0.7 per cent in April from a year ago, declining to $8.4 billion. This was the sixth straight monthly decline. The data adds to concerns of a deeper slowdown in China’s economy.
- April retail sales climbed 0.1 per cent in April in line with expectations. Consumer prices in April stayed flat, and the Empire Fed manufacturing survey crushed expectations surging to 17.09 >
- Facebook has raised the price-range for its IPO to $34-$38, from $28 – $35. The new range values the company from about $92 billion – $103 billion. Now here are 15 reasons to stay bullish on stocks >
- Coty has pulled its $10.7 billion offer to buy Avon because Avon missed the deadline to begin discussing a deal that was first proposed in March. Coty had revealed that the takeover would be financed by Berkshire Hathaway and others.
- In earnings news, Home Depot reported net earnings of $1.04 billion, or $0.68 per share, on sales of $17.81 billion. Sales climbed 5.9 per cent but missed analysts’ expectations of $17.96 billion. Don’t Miss: JP Morgan presents the 14 best stocks in America >
- Moody’s cut the long-term debt and deposit ratings for 26 Italian banks yesterday by one to four notches, with a negative outlook. Moody’s cited “increasingly adverse operating conditions” and limited access to market funding as reasons for the downgrade.
- Business inventories for March and the housing market index for May will be released at 10 a.m. ET. Consensus is for a 0.4 per cent mum increase in business inventories and for a housing market index reading of 26. Follow the release at Money Game >
- Bonus – Hilary Swank is suing a company in Southern California for allegedly using images of her from “Million Dollar Baby” without her permission.
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