Tuesday's Early Headlines
- PPIP Coming Wednesday: Reports. - The U.S. Treasury is planning to roll out its long-awaited Public-Private Investment Program, or PPIP, plan, aiming to unveil it on Wednesday, according to CNBC. The program, a two-pronged plan to offer government financing to lure investors into buying bad loans and toxic securities from banks, is likely to include as many as nine participants. CNBC confirmed that two firms will be Wilbur Ross's distressed real estate/debt fund and a joint venture between General Electric's (GE) - Get ReportGE Capital and private investor Angelo Gordon. Other firms widely expect to be named include PIMCO and BlackRock (BLK) - Get Report, according to the report.
- Introducing the New General Motors. - General Motors (GMGMQ) will ask a bankruptcy court to approve the sale of its assets to create a new, unburdened automaker. Additionally, The Financial Times reported that GM is nearing a deal to sell a stake in its Opel division to Belgium industrial holding company RHJ International after talks with Magna International (MGA) - Get Report have run into snags.
- Iraq Opens Oil, Gas Fields to Foreigners. - Iraq opened up some of its massive oil and gas fields to foreign companies on Tuesday, kicking off a landmark licensing round it hopes will help fuel its postwar reconstruction efforts. International oil companies were invited to submit bids for six oil and two gas fields, a process that marked their return to the country over 30 years after Saddam Hussein nationalized the oil sector and expelled the foreign firms.
- Second Quarter Winds to a Close. - The S&P 500 index is on pace for its biggest quarterly rally since 1998, as the second quarter will end at the close of trading Tuesday. The S&P 500 has climbed 16% in the quarter, the steepest such advance since December 1998, according to Bloomberg.
- Broadcom Raises Offer for Emulex to $912 Million. - Broadcom (BRCM) raised its offer for Emulex (ELX) to $11 a share from $9.25, and said the $912 million bid is the best offer it intends to make for the storage technology company.
- Enterprise to Buy Teppco for $3.3 Billion. - Enterprise Products Partners (EPD) - Get Report will acquire Teppco Partners (TTP) - Get Report in a sweetened all-stock deal worth about $3.3 billion, forming what the two pipeline operators say will be the nation's largest publicly traded energy partnership.
- Abbott Ordered to Pay $1.67 Billion in Patent Case. - A unit of Johnson & Johnson (JNJ) - Get Report said a federal jury has ordered Abbott Laboratories (ABT) - Get Report to pay $1.67 billion in a patent infringement suit over the companies' rheumatoid arthritis drugs.
Earnings and Economic News
- Three Economic Reports Will Influence Trading Tuesday. - At 9 a.m. EDT, the Conference Board will release its latest reading of consumer confidence, with economists expecting a slight increase to 55.3 in June from 54.9 last month. Also at 9 a.m., Standard & Poor's will post the S&P/Case-Shiller home price index, which is expected to have fallen 18.63% in April after a 18.7% slide in March. Shortly after, the Chicago Purchasing Managers will post their manufacturing index, which is expected to rise to a reading of 39 in June from 34.9 in May.
- Federal Reserve Members Set to Speak - Several Federal Reserve members will also be giving speeches on the economy Tuesday, including St. Louis Fed President James Bullard, Kansas City President Thomas Hoenig, and San Francisco President Janet Yellen.