Global Manufacturing Slows, Maple Wins Control of Toronto Exchange

Arthi Gupta
01 Aug, 2012
New York City

U.S. indexes traded sideways after private sector employment exceeded expectations in July and manufacturing weakened in Europe and struggled in China. A private consortium of investors won control of Toronto Stock Exchange. Torchmark agreed to acquire Family Heritage for $218.5 million.

[R]10:30 AM New York – U.S. indexes traded sideways after private sector employment exceeded expectations in July and manufacturing weakened in Europe and struggled in China. A private consortium of investors won control of Toronto Stock Exchange. Torchmark agreed to acquire Family Heritage for $218.5 million.[/R]

U.S. indexes edged higher after private sector employment rose more than estimated in July and investors awaited FOMC statement later this afternoon.

Manufacturing index tracked by ISM improved in July to 49.8 from 49 in June on weak exports orders. The reading below 50 indicates a contraction and the June reading was the first monthly shrinkage since July 2009.

European stock indexes traded higher in volatile trading ahead of the European Central Bank meeting on a cautious optimism and manufacturing activities declined in the euro zone and in Germany and inflation in the UK eased in July.

Asian stocks declined after weak Chinese manufacturing data.

A report released by the Chinese Federation of Logistics and Purchasing showed that manufacturing index edged down 0.1 points to 50.1 in July.

U.S. Private Sector Job Growth Rises

U.S. private sector employment rose more than estimated in July, according to a report released by payroll processor Automatic Data Processing.

Employment in the nonfarm private business sector rose 163,000 from June to July on a seasonally adjusted basis, according to ADP.

Employment in the private, service-providing sector expanded 148,000 in July after rising a revised 151,000 in June.

Maple Secures Shareholder Approval for TMX

The Maple Group, a group of Canadian financial institutions secured 90% shareholder approval to acquire operator of Toronto Stock Exchange. The deal worth C$3.8 billion will combine the Toronto Stock Exchange with its trading system rival Alpha.

Torchmark to Acquire Family Heritage

Torchmark Corporation agreed to acquire Family Heritage Life Insurance Company of America, a privately-held supplemental health insurance provider for approximately $218.5 million. The transaction is expected to close early in the fourth quarter.

Earnings Review

Comcast Corporation ((CMCSA)), the information and communications services provider reported second quarter revenues rose 6.1% to $15.21 billion from the prior year quarter. Net income attributable to the company grew to $1.348 billion or 50 cents per diluted share from $1.022 billion or 37 cents per share in the same quarter last year.

Costco Wholesale Corporation ((COST)), the membership warehouses operator reported net sales of $7.25 billion for July, up 8% from $6.74 billion during the similar period last year.

MasterCard Inc. ((MA)), the payments and technology company said second quarter net revenue was $1.8 billion, a 9% increase compared to the same period in 2011. Net income attributable to the company rose15% to $700 million or $5.55 per diluted share compared with $608 million or $4.76 per share a year before.

Time Warner Inc. ((TWX)), the media and entertainment giant reported second quarter revenues decreased 4% to $6.74 billion from the same quarter last year. Net income for the quarter declined to $430 million or 44 cents per diluted compared to net income of $638 million or 59 cents per share in the prior-year quarter.