Markets gyrated over the course of the day as traders waited for Alcoa to kick off U.S. earnings season.But first, the scoreboard:
Dow: 12,736, -36, -0.3%
S&P 500: 1,352, -2, -0.2%
Nasdaq: 2,932, -6, -0.2%
Here’s what you need to know.
- Before the opening bell, Kayak moved closer to publicly listing shares. The company submitted new filings to the SEC and said it would price shares between $22 and $25, raising as much as $100 million in the offering. Kayak will trade on the Nasdaq under the ticker symbol KYAK.
- Boeing inked a deal worth as much as $7.2 billion at the Farnborough Airshow in Great Britain. Leasing company Air Lease said it would take delivery of 75 Boeing 737 MAX jets starting in 2018. The total price Air Lease will pay may be as much as 50 per cent less than the list price.
- Two major deals were also announced before the opening bell, with WellPoint and Campbell Soup both acquiring new companies. Health Insurer WellPoint will take over Amerigroup subject to regulatory approval for $92 a share, or $4.46 billion. Separately, Campbell said it would purchase Bolthouse Farms for $1.55 billion.
- Markets turned negative at the open, with the Dow off as much as 2 per cent over the course of the trading day. Energy prices bucked that trend, with crude trading on the NYMEX up 1.54 per cent to $85.75 a barrel. Brent also rallied, but remained below $100 a barrel.
- France sold six-month debt at negative interest rates, following in the footsteps of Germany. France’s debt office issued €7.7 billion worth of bills maturing in October and December this year and June 2013. The shorter term three-month notes sold at -0.005 per cent, while six-month bonds issued at -0.006 per cent. The auction may have been the most important one in history >
- Bank of England Deputy Governor Paul Tucker denied that he encouraged banks to post artificially lower lending rates in their submissions to the BBA. His statements came during testimony to U.K. lawmakers as the country probes allegations of LIBOR collusion. The Federal Reserve was worried about LIBOR manipulation as early as 1998 >
- An hour before the close, the Federal Reserve reported that consumer credit surged at the highest rate since December. Credit advanced by $17.1 billion in May, above expectations for an $8.5 billion print. April figures were also revised higher, and revolving credit improved 11.2 per cent.
- Patriot Coal could file for bankruptcy protection as soon as today, Bloomberg’s Beth Jinks, Krista Giovacco, and Jeffrey McCracken report. The coal company has lined up financing with Citigroup, Barclays, and Bank of America.
- Alcoa started U.S. earnings season off with a beat, reporting quarterly results of $0.06 per share, a penny above estimates. Revenue was also stronger than forecast, at $5.96 billion. Click here to see what the world’s largest companies are telling us about the economy >