11:20 AM New York – U.S. indexes edged lower after wholesale inventories rose more than estimated in February. Facebook agreed to acquire Instagram for $1 billion. Cerberus agreed to acquire AT&T yellow pages division for $1 billion. Supervalu swung to loss.
U.S. indexes traded sideways after a listless morning session. Alcoa will kick-start quarterly earnings season after the markets close.
European indexes slumped after a latest survey of confidence in the region showed a decline and markets overlooked a surge in German exports. Latest imports data from China also dragged market sentiment and bond yields of Spain rose to a high for the year.
The trading sentiment weakened after bond yields of Italy and Spain advanced and Spain reiterated its pledge to sell nationalized banks and lower its deficit to 3% of gross domestic product in 2013.
Asian markets edged lower.
China's trade balance was in a surplus of $5.35 billion in March compared to a deficit of $31.48 billion in February, according to the latest data released by the General Administration of Customs today.
Exports rose 8.9% from a year ago in March compared to the 18.4% annual growth reported for February. Imports eased to 5.3% in March from the 39.6% expansion in February.
The Bank of Japan decided to retain the benchmark uncollateralized overnight call rate at 0-0.1% but did not announce further stimulus.
U.S. Wholesale Inventories Rise
U.S. wholesale inventories rose to a seasonally adjusted level of $478.9 billion in February, reflecting a 0.9% increase from January levels, according to data released by the U.S. Department of Commerce today.
Facebook to Acquire Instagram
Facebook Inc. agreed to buy Instagram, a photo-sharing app for smartphones, for about $1 billion in cash and stock. The deal is expected to close later this quarter.
Instagram is a free photo sharing application that allows users to take a photo, apply a digital filter and share it on a variety of social networking services. The company has more than 30 million registered users and is less than two years old and has minimal revenues.
AT&T to Sell Yellow Pages
AT&T announced that an affiliate of Cerberus Capital Management, L.P. agreed to acquire AT&T Advertising Solutions and AT&T Interactive for $950 million. As part of the transaction, AT&T will receive a 47% equity interest in the new entity, YP Holdings LLC.
The transaction includes assets of AT&T Advertising Solutions, which delivers sales and customer support, and AT&T Interactive, which conducts interactive product development.
YP will include approximately 1,200 The Real Yellow Pages print directory titles reaching about 150 million homes and businesses in 22 states; YP.com, the YPSM Local Ad Network, which includes more than 300 mobile and online publisher websites nationwide providing digital reach to more than 71 million monthly unique visitors.
Ford Recalls Focus Cars
Ford Motor Co. said it plans to recall 140,310 Focus cars manufactured between August 2010 and October 2011 on concerns that a missing moisture seal could hurt the motor that runs the passenger side windshield wiper, according to the National Highway Traffic Safety Administration.
Sony, Sharp Widen Loss Forecast
Sony Corp., the Japanese consumer electronics and entertainment firm widened its net loss forecast for the year 2012 as it takes a tax charge.
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