4:30PM NY, 10:30 PM Frankfurt, 2:00AM Mumbai – Global Markets

Takeover news and earnings optimism lifted select Dow stocks in New York trading. European stocks advanced a fraction led by Spain and Swiss markets. UK lost ground. Euro and pound edged higher in trading to a dollar. Japan after the holiday on Tuesday is likely to trade lower. Thai baht traded at 10-year high against dollar. Shanghai fell 2.4%. Brazilian banks gained for the third day in a row.

Yields edged lower on 10-year U.S. bonds and closed at 5.053% and 30-year bond rose to close at 5.137%.

Crude oil gained 22 cents to close at $74.15 per barrel, natural gas closed down 29 cent to $6.38 per mBtu, and gasoline futures down 4.2 cents to close at 222.48 cents per gallon.

Gold down $2.80 to close at $664.50 per ounce, silver lost 4.5 cents to close at $13.06 per ounce, and copper futures gained $50 to close at $7,948 per metric ton.

Dow Jones added 43.73 to 13,950.98, Nasdaq lost 9.68 to 2,697, and S&P 500 declined 2.98 to 1,549.52.

Befitting typical Monday, takeover news topped the headlines. Applebee’s International agreed to be bought by IHOP International or $25.50 per share or $2.1 billion. The deal news lifted Applebee’s stock 1.9% and IHOP by 10%. Blackstone agreed to purchase orthopedic device maker DJO Inc for $1.6 billion or $50.25 per share. The DJO jumped nearly $8 or 19% on the news. RBS led consortium agreed to raise its cash portion of the offer for ABN Amro from 79% to 93%. The news lifted bank stocks in Europe. Vodafone denied the news reports that it is not preparing to purchase its partner in the Verizon Communications (VZ: chart).

On the earnings front Mattel (MAT: chart) jumped 3.3% after reporting 15% earnings increase and Eaton Corp (ETN: chart) gained 4% after reporting earnings decline of 3% but revised the earnings outlook. W.W. Grainger dropped 4% after the company reported second quarter earnings of $1.21 per share from $1.02 per share a year ago on 6% less shares then a year ago. After the close, Novellus Corp, Sun Bancorp, and Stanley Furniture report earnings.


2:30PM NY, 8:30 PM Frankfurt – European markets closed higher on takeover news and falling dollar.

European markets closed higher across the region led by 0.6% gain in Spain followed by 0.4% rise in Switzerland, and 0.2% increase in Germany, Italy and the Netherlands. The U.K. lost 0.3%.

In Frankfurt trading Commerzbank gained 1% after the company offered to buy minority shareholders of Eurohypo AG for 24.3 euro. The bank said the offer is adequate but shareholders held out for more payment. Bayer jumped 1.4% to 57.15 euros on recommendation from J P Morgan with a revised price target to 70 euros from 63 euros. Volkswagen gained 0.5% to 123.40 euros. The company regional head in China said that the sales in the country are likely to exceed 12% growth target this year. Demag Cranes lost 7% in addition to the 23% in Friday’s trading. The company lowered its earnings forecast prompting broker UniCredit Markets to lower its rating and price target to 43 euros. The stock closed at 36.90 euros.

In London trading FTSE closed 0.28% lower to 6,697 on lower mining stocks. Lonmin, largest platinum producer, lost 7% on the news that it expects 14% lower production this year. The company now expects sales between 820,000 and 840,000 ounces and expects higher operating costs. BHP Billiton dropped 1.2% on falling copper prices in New York trading. Vodafone fell 0.8% after gaining as much as 1.5% and denied that it is considering to purchase Verizon in the U.S. Barclays rose1.2% after the rival group controlled by RBS raised its cash portion of the offer for ABN Amro to 91% from 79%. RBS bid exceeds 11% the bid from Barclays all stock offer. Rolls-Royce fell 1.6% to 560 pence after ABN Amro lowered its rating on the company to ‘hold’ from ‘buy.’

11:00AM NY – Trading sentiment ahead of earnings releases remain positive. Construction industry equipment stocks jump in the morning trading in New York.

Spartech Corp (SHE: chart), building material maker, said that its chief executive has resigned and lowered its earnings guidance for the year. The company now expects to earn between $1.45 and $1.50 per share from previous guidance of $1.55 and $1.62 per share. The company blamed the shortfall to tough market in transportation and residential construction industries. The company also plans to take a charge of 4 cents stemming from the executive resignation. The stock fell 17% to $22.60.

J.M. Smucker (SJM)), maker of jams, peanut butter and other food products, fell 4.2% to $60.82 on no news. The stock trading near 52-week high has risen nearly 25% in the year.

IHOP Corporation (IHP: chart) jumped 10% on the takeover agreement to purchase Applebee’s for $2.1 billion. The stock jumped $5.60 to $61.86 after WSJ.com reported the news.

Positive outlook on construction industry equipment companies lifted shares of Terex (TEX: chart), Manitowoc (MTW: chart), Joy Global (JOYG: chart), Caterpillar (CAT: chart), and Deer & Company (DE: chart). Terex jumped 4.5%, Caterpillar and Joy Global gained more than 1% and Deer edged a fraction up.


10:00AM NY – After thirty minutes of trading, NY awaits earnings results for the second quarter.