Pre-open movers
US stock futures rose on Wednesday, giving some hope to the equity market. Futures on the Dow Jones Industrial Average rose 103 points to 10,109, those on the S&P 500 gained 13.10 points to 1,061 and Nasdaq futures were up 25.75 points to 1,792. August was not a good month, with the Dow down 4.3%, the S&P 500 falling 4.7%, and the Nasdaq losing 6.2% in the month.
A Peek Into Global Markets
Positive sentiments ruled the European markets today. While STOXX Europe 600 Index has advanced 1.24%, London’s FTSE 100 Index moved up 1.49%.
Asian markets showed mix results today, with Japan's Nikkei Stock Average adding 1.17%, Australia's S&P/ASX 200 moving up 1.98% and China's Shanghai Composite losing 0.59%.
Broker Recommendation
Wells Fargo Securities is out with a research report this morning, where it reiterates its Outperform rating on Magna International Inc. (NYSE: MGA); it lowered its valuation range to $92-$100, from $94-103.
The WFS analysts cited a revision to the company’s cash payments to Stronach trust for the Class B shares. They have thus altered estimates slightly for the quarter, leaving the full year intact at $7.10 per shares in 2010 and $8.35 per share in 2011.
As for the methodology behind their valuation, the WFS analysts remarked, “Our 12-month valuation range applies an EV-to-EBITDA multiple of 4.5-5.0x to our 2011 EBITDA estimate. Primary risks include substantial revenue exposure to the Big Three in North America (approximately 80-85% of total N.A. revenues), a significant decrease in European vehicle sales, and exposure to high raw material prices (notable steel and resin).”
Breaking news
- Shares of Burger King Holdings Inc. (NYSE: BKC) surged in early trading on Wednesday, after the Wall Street Journal reported that the company is in talks with buyout firms. To read the full news, click here.
- CPI Aerostructures Inc (CVU) today announced that the U.S. Air Force has released a new order under CPI Aero's C-5 TOP contract for a variety of spoilers valued at approximately $2.2 million. To read the full news, click here.
- Joy Global (NASDAQ: JOYG) reported earnings this morning that beat on the bottom line, but missed on the top line. To read the full news, click here.
- Thomson Reuters (NYSE: TRI) today announced that it has acquired Healthcare Data Management, Inc. To read the full news, click here.
Read more from Benzinga's Markets.
