In the U.S.: Stock Futures Little Changed Before Jobs Data; Green Mountain Sinks

9 March 2012

Success/failure (it’s really a matter of opinion at this stage) of Greece deal may already be priced into U.S. securities. Payroll reports may see stocks rise later on.

U.S. stock-index futures were little changed as investors awaited the Labor Department’s monthly payrolls report and Greece pushed through the biggest sovereign restructuring in history.

Texas Instruments Inc. fell in German trading after reducing its forecasts. Green Mountain Coffee Roasters Inc. (GMCR) plunged 18 percent after Starbucks Corp. (SBUX) said it plans to introduce a competing single-cup coffee maker. Starbucks, the world’s largest coffee-shop operator, rose 3.8 percent.

Futures on the Standard & Poor’s 500 Index (SPX) expiring in June slipped less than 0.1 percent to 1,360.1 at 7:01 a.m. in New York. The benchmark gauge completed its biggest two-day advance of the year yesterday, bringing its 2012 gain to 8.6 percent. Futures on the Dow Jones Industrial Average increased 1 point to 12,845 today.

The jobs data is “a very good indicator of growth and a very good indicator of the equity market,”Louise Cooper, a markets analyst at BGC Partners in London, said in a Bloomberg Television interview. “A good number should help support the U.S. equity market, although it has been phenomenal year to date.”

Today is the three-year anniversary of the bull market in U.S. stocks that began after the housing crisis of 2008. The S&P 500 has surged 102 percent since the close of trading on March 9, 2009.

Jobs Data

The Labor Department will release its monthly jobs report at 8:30 a.m. in Washington. Economists forecast the data will show that private jobs increased 225,000 and total non-farm payrolls climbed 210,000 in February, according to a Bloomberg survey of economists. The jobless rate probably held at an almost three-year low of 8.3 percent.

In Greece, investors with 95.7 percent of the nation’s privately held bonds will participate in the sovereign-debt restructuring after the government said it will trigger an option forcing them to take part.

Bondholders tendered 152 billion euros ($201 billion) of Greek-law bonds, or 85.8 percent, in response to the offer to swap their holdings. Twenty billion euros of foreign-law debt was also tendered, the Finance Ministry said. Greece extended its offer to holders of non-Greek law bonds to March 23, after which sweeteners will no longer be available.

Attention now shifts to euro-region finance ministers, who must decide whether the swap warrants proceeding with a 130 billion-euro second bailout package designed to prevent a collapse of the Greek economy.

ISDA Meeting

Greece’s use of collective-action clauses forcing investors to take part in the sovereign restructuring should trigger $3 billion of insurance payouts under rules governing credit- default swap contracts. The International Swaps & Derivatives Association’s determinations committee meets at 1 p.m. in London today to decide whether using CACs constitutes a restructuring credit event that will cause a payout of swaps insuring Greek debt.

Texas Instruments (TXN), the world’s largest maker of analog semiconductors, fell 0.6 percent to $32.41. The company reduced its first-quarter sales and profit forecasts, citing lower demand for wireless products.

Green Mountain Coffee Roasters sank 18 percent to $51.40 in German trading. Starbucks said it plans to introduce a new single-cup brewer this year, known as Verismo, increasing competition for the Keurig coffee machines made by Green Mountain.

Starbucks climbed 3.8 percent to $52.22 in Germany.

Heckmann Falls

Heckmann Corp. (HEK) dropped 3.4 percent to $5.11 in late trading in New York. The provider of water treatment and disposal services reported fourth-quarter revenue of $51.7 million, missing the average analyst estimate of $54.5 million in a Bloomberg survey. The company also said it will acquire Thermo Fluids Inc. for $245 million in cash and stock.

Body Central Corp. (BODY) slid 7.7 percent to $26.50 in after- market New York trading. The women’s clothing retailer forecast 2012 revenue of $348 million at most, falling short of the average analyst projection of $355 million in a Bloomberg survey.


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