Stocks are set to rebound today as unrest continues in Greece and tech titans battle for government contracts.
After heavy losses yesterday, Dow
(INDEXDJX:.DJI) futures were up 0.50% at 15,214 this morning before the opening bell. S&P 500
(INDEXSP:.INX) futures also rose 0.56% to 1,636.20 and contracts on the Nasdaq
(INDEXNASDAQ:.IXIC) index climbed 0.46% to 2,997.25.
Ahead of today's Energy Information Administration petroleum inventory report, West Texas Intermediate oil futures are down just 0.07% at $95.31/barrel.
Japanese shares fell overnight as machinery orders fell 8.8% month-over-month in April after March's 14.2% rise. This worse-than-expected indicator shows that companies are still skittish about capital expenditures despite the government's stimulus efforts.
European indicies were up slightly today. Inflation figures for Europe also came out today, confirming that some areas of the eurozone are at risk of deflation. German consumer prices rose 0.4% in May, logging a 1.5% year increase in inflation. French prices were up just 0.1% monthly, 0.8% year-over-year and Italian CPI was dead flat from April, but up 1.1% from May 2012. Eurozone industrial output rose for the third straight month in April, rising 0.4% where a drop was expected.
Yum Brands, Inc.
(NYSE:YUM) same-store sales in China fell 19% on a yearly basis last month as customers fear avian flu from poorly handled poultry. This was better than April's 29% drop. Yum derives more than half of its revenue from China, where KFC is usually very popular.
First Solar, Inc.
(NASDAQ:FSLR) shares fell 5.4% in the pre-market, extending yesterday's losses after the company offered another 8.5 million public shares.
Institutional Shareholder Services recommended that Sprint Nextel Corporation
(NYSE:S) shareholders support SoftBank Corp's
(TYO:9984) recently sweetened offer for a controlling stake in the company. The Japanese company offered $21.6 billion for 78% of Sprint.
The Wall Street Journal reported
that International Business Machines Corp.
(NYSE:IBM) successfully protested the Central Intelligence Agency's awarding a cloud computing contract to Amazon.com, Inc.
(NASDAQ:AMZN). The $600 million contract to connect the broader intelligence community is part of the Defense Department's $35 billion yearly tech budget, which is a more necessary source of revenue for tech providers whose private clients are cutting back. The CIA originally awarded the contract to Amazon Web Services, but the Government Accountability Office agreed with IBM's protests yesterday. The CIA could reopen negotiations within the next 60 days.
Greece was given the dubious honor of being the first country to be demoted from "developed" to "emerging" by MSCI, the global mutual fund provider. This comes amidst protests over the government's closure of a popular public news broadcaster.
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