Futures are pointing higher this morning, as traders react to a promising economic report out of China. A report out last night revealed that the Chinese economy grew 9.5% in the second quarter from the year-ago period -- beating analysts' expectations, and bolstering China's stock markets. Back at home, U.S. investors are marking time until 10 a.m. Eastern, when Federal Reserve Chairman Ben Bernanke will take the stage to address the House Financial Services Committee. On Tuesday, minutes from the Fed's meeting in June suggested that some representatives supported additional stimulus measures -- and analysts are hopeful that's something Bernanke could address. Amid this backdrop, futures on the Dow Jones Industrial Average (DJIA) are trading some 92 points higher while the S&P 500 Index (SPX) is hovering nearly 10 points north of fair value.
Capital One Financial Corp. (COF - 52.24) said that its second-quarter income arrived at $911 million, or $1.97 per share, up from $608 million, or $1.33 per share, in the year-ago quarter. Revenue, meanwhile, arrived at $3.99 billion. Analysts had expected the financial issue to post a slimmer profit of $1.73 per share. COF also announced plans for a $2 billion stock offering, with the proceeds going toward its acquisition of ING Direct. Ahead of the open, COF has tacked on 0.5%.
Healthcare Services Group (HCSG - 17.57) announced that its second-quarter profit climbed 13% to $9.8 million, or 15 cents per share, from its year-ago earnings of $8.7 million, or 13 cents per share. Revenue for the quarter rose 9.6% to $211.5 million. The results were mixed, with Wall Street looking for a profit of 15 cents per share on $215 million in revenue. However, HCSG added that its board approved a dividend increase of 4% to $0.15875 per common share, which is payable Aug. 19 to shareholders of record at the close on July 29.
ASML Holding N.V. (ASML - 34.88) is down 1.7% this morning, as traders react to a particularly disappointing earnings report. While the tech firm posted a consensus-beating second-quarter net profit of 432 million euros, ASML's lackluster sales forecast overshadowed this data. Specifically, ASML said that orders will decline in the third quarter as a result of the lagging economy, with the company projecting sales of just 500 million euros -- well below last year's numbers, as well as the firm's original forecast for sales between 900 million and 1 billion euros.
Finally, in M&A news, Kinetic Concepts, Inc. (KCI - 64.49) announced that it will be bought by a consortium of bidders in a deal worth $6.3 billion. The buyers, which include Apax Partners and members of Canada pension firms, will be paying $68.50 per share for the medical equipment issue -- a notable premium to KCI's Tuesday close at $64.49. Ahead of the open, the shares have added 5.2%.
Economic Calendar
Today, we'll hear reports on import/export prices for June, the Treasury budget, and weekly crude inventories. A round of inflation data kicks off on Thursday, with the producer price index (PPI) and core PPI for June. The weekly update on jobless claims will also be released, along with retail sales for June and May's business inventories. The economic calendar wraps up on Friday with the consumer price index (CPI) and core CPI for June, the preliminary Reuters/University of Michigan consumer sentiment index for July, the Empire State manufacturing index, and reports on industrial production and capacity utilization.
Market Statistics
Equity option activity on the Chicago Board Options Exchange (CBOE) saw 928,232 call contracts traded on Tuesday, compared to 647,039 put contracts. The resultant single-session put/call ratio docked at 0.70, while the 21-day moving average was perched at 0.69.
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