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Pre-Market: Samsung's Parent Company Plans to Go Public; Chinese Manufacturing Hits Four-Month High


Apple changes its policy to allow digital currency-enabled apps.

Stock futures pointed toward a lower open on Tuesday. Before the opening bell, Dow Jones (INDEXDJX:.DJI) futures fell 0.17% to 16,693. Futures on the S&P 500 (INDEXSP:.INX) were down 0.23% to 1,917.40. Nasdaq (INDEXNASDAQ:.IXIC) futures moved lower, falling 0.28% to 3,717.


Samsung Everland Inc., which owns Samsung Electronics (OTCMKTS:SSNLF), is seeking an initial public offering, and plans to name managers and decide specifics for the IPO later this month. Analysts see the offering as a move to transfer ownership of the company from Lee Kun-hee to his children after Lee's recent hospitalization following a cardiac procedure. The Lee family controls a 46% stake in Samsung Everland, with Jay Y. Lee (Kun-hee's only son) owning 25.1% stake. Samsung Everland, which has business interests ranging from electronics to fashion to resorts, reported $3.15 billion in revenue in 2013.

Apple (NASDAQ:AAPL) has updated its App Store guidelines in favor of digital currencies like Bitcoin, saying "Apps may facilitate transmission of approved virtual currencies provided that they do so in compliance with all state and federal laws for the territories in which the app functions." However, Apple -- which had previously not allowed iOS apps to store or transmit digital currencies -- still must approve individual digital currencies. So at least for now, you still can't use your iPhone to pay for things using Bitcoins. Shares of Apple fell 0.50% ahead of the opening bell.

Two new reports regarding deaths related to faulty ignition switches in General Motors (NYSE:GM) vehicles have been released. The Center for Auto Safety claims that 2,004 reports on injuries and deaths related to ignition-related defects have been filed by GM, while Reuters independent research showed 74 people died in accidents with similarities to accidents officially recognized by GM as caused by faulty ignition switches. GM has admitted to only 13 ignition switch-related deaths. Shares of GM were down 0.03% in pre-market trading.

Investors pulled $4.3 billion out of Pimco's Total Return bond fund in May, which marked the 13th month of outflows and the worst since last October. The fund, which is the world's largest fixed income fund, is now estimated to be worth $229 billion after losing 1.9% of its capital. Outflows have persisted despite falling rates and higher bond prices, and the company has continued to face difficulties since losing its co-chief investment officer Mohamed El-Erian in January.


Auto sales are expected at some point today, which will include domestic and foreign sales of motor vehicles. At the time of writing, the ICSC-Goldman retail store sales and the Gallup US Economic Confidence Index were the only economic measures released for the day. ICSC-Goldman sales jumped 2.9 in the week ending May 31 thanks in part to warm weather. The Gallup US ECI increased to -14, which, despite being the highest reading so far in 2014, was far below May 2013's reading of -7. At 8:55 a.m., Redbook chain store sales will be released. Factory orders come at 10:00 a.m. and global manufacturing PMI comes at 11:00 a.m. At 1:50 p.m., Kansas City Federal Reserve Bank President Esther George speaks on monetary policy in Breckenridge, Colorado.

Global Markets

A second reading of Chinese manufacturing arrived overnight, a day following Chinese government numbers. The China HSBC Manufacturing Index hit a four-month high in May, rising to 49.4 form 4.81 April. The evidence that the world's second largest economy is stabilizing pushed Asian markets higher. The same can't be said for European markets, which fell from a six-year high after a report showing lower-than-expected euro area inflation was released ahead of Thursday's European Central Bank meeting. In the UK, positive economic news continued with an 11.2% jump in house prices nationwide. President Obama is in Poland today, where he announced the United States' $1 billion initiative to strengthen the military capabilities of its European allies.

Twitter: @brokawbrokaw
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