NEW YORK (TheStreet) -- Here are the top stock market headlines for the morning of Wednesday, June 30, 2010.
Wednesday's Early Headlines
- ADP Report Shows Slight Private-Sector Job Gains in June -- Automatic Data Processing's (ADP) - Get Report latest employment report showed that the private sector added 13,000 jobs in June, well below forecasts for a 60,000 increase. May's figure was revised to an addition of 57,000 jobs, up from 55,000. While June's gain of 13,000 was the fifth straight month of additions, "following steady improvement through April, private employment may have decelerated heading into the summer," ADP said in its report. ADP also noted that the report does not include the effects of federal hiring for the 2010 Census. As hiring for the census may have peaked in May, "Friday's figure for the change in nonfarm total employment...might be weaker than today's estimate for nonfarm private employment," ADP said. The Labor Department's nonfarm payrolls report, scheduled for release Friday at 8:30 a.m. ET, is expected to show that the U.S. economy lost 100,000 jobs last month, according to a Briefing.com consensus.
- Democrats to Ax Bank Tax from Reform Bill: Report -- In an effort to ensure passage of the Dodd-Frank financial reform bill, Democrats will remove roughly $19 billion in taxes on large financial institutions, Reuters reports. The bank tax, which President Obama has called for, is being stripped from the reconciled version of the House and Senate legislation in order to win support from some Republican member of Congress, including Sen. Scott Brown (R., Mass.). Instead, the legislators would look to end the Troubled Asset Relief Program early, the report said, in order to cover some of the costs of the bill's provisions.
- Citigroup Shares Rebound After Tuesday's Circuit Breaker Trading Halt -- Citigroup (C) - Get Report shares were rising nearly 2% in Wednesday's premarket session after the bank stock tripped circuit breakers put in place in the wake of the "flash crash" in early May on Tuesday. The single-stock circuit breaker was imposed on Citigroup shares after the stock plunged to $3.32 from roughly $3.80 at 1:03 p.m. ET Tuesday, according to Dow Jones citing a NYSE Euronext (NYX) spokesman. A single trade was placed for 8,820 Citigroup shares at $3.3174 on Tuesday, 12.7% lower than the previous trade of $3.80, Dow Jones reported, noting that the trade has since been canceled.
- ECB to Lend $161 Billion to Banks -- The European Central Bank said it will lend €131.9 billion ($161 billion) to banks for three months. The ECB said Wednesday that 171 institutions subscribed to the three-month refinancing operation, as the yearlong loan facility expires.
- Mortgage Applications Rise; Rates Fall -- The Mortgage Bankers Association said its Market Composite Index, a measure of mortgage loan application volume, rose a seasonally adjusted 4% last week, as purchasing applications jumped 13% from the prior week. On the other hand, refinancing applications slid 2.1% compared with the previous week, the survey showed. The average 30-year fixed-rate mortgage rate fell to 5.02% last week from 5.08% the previous week, the MBA said.
- Boeing to Buy Argon for $775 Million -- Boeing (BA) - Get Report said it will buy defense systems developer Argon (STST) in an all-cash tender offer and merger for $34.50 a share, or about $775 million. The offer is roughly a 41% premium to Argon's closing price Tuesday. Boeing plans to fund the transaction with existing cash and said that the acquisition is expected to have little impact on its earnings.
- Apple iPhone Coming to Verizon: Bloomberg -- Apple (AAPL) - Get Report will launch its iPhone on Verizon's (VZ) - Get Report wireless network in the U.S. in January, Bloomberg reports, citing two sources familiar with the matter. That would end AT&T's exclusive agreement with Apple in the U.S., which the carrier has had since the original launch in 2007. Verizon is the largest mobile provider in the U.S. with 92 million customers.
Wednesday's Earnings Roundup
- Monsanto (MON) posted third-quarter adjusted earnings of 81 cents a share on revenue of $2.96 billion. That compares to the Thomson Reuters average estimate for a profit of 80 cents a share on revenue of $3.17 billion. Looking ahead, Monsanto reaffirmed its full-year earnings guidance range of $2.40 to $2.60 a share, which is in line with consensus estimates.
- Apollo Group (APOL) will report quarterly results after the close of trading Wednesday. Analysts are looking for a profit of $1.55 a share on revenue of $1.29 billion, according to a Thomson Reuters poll.
-- Written by Robert Holmes in Boston
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