Traders Watch Ira Sohn

Economic Data

- (ZA) South Africa Apr Naamsa Vehicle Sales Y/Y -0.9%e v 0.0%prior
- (CZ) Czech Apr Budget Balance (CZK): 0.4B v 19.9B prior
- (BR) Brazil Apr Manufacturing PMI: 46.0 v 46.2 prior
- (MX) Mexico Mar Leading Indicators M/M: -0.09 v -0.09 prior
- (MX) Feb Gross Fixed Investment: 1.3% v 2.5%e
- (SG) Singapore Apr Purchasing Managers Index: 49.4 v 49.5e; Electronics Sector Index: 49.1 v 50.0e
- (US) Apr ISM New York: 58.1 v 50.0 prior
- (US) Mar Factory Orders: 2.1% v 2.0%e; Factory Orders (ex-transportation): 0.0% v 0.8% prior
- (MX) Mexico Mar Total Remittances: $2.26B v $2.2Be
- (MX) Mexico Apr Manufacturing PMI: 53.8 v 53.8 prior

US and European markets are seeing modest gains this morning in lower-than-average trading volume. In Europe, the glimmers of hope about Greece negotiations last week have grown into some real green shoots, helping to send sovereign yields higher. As of writing, the DJIA is up 0.34%, the S&P500 is up 0.37% and the Nasdaq is up 0.39%.

Comcast's first-quarter results were above par, while Cablevision was more or less in line with expectations. Comcast hit an important milestone, as subscribers for internet service now outnumber cable TV subscribers, although the crossover apparently was in April, after the end of the quarter. Cablevision's numbers were not great, and total customers were lower y/y. Operating income was lower y/y. Shares of CVC and CMCSA are up slightly. MGM is among the most notable earnings losers, with shares down more than 11% on rough going in Macau.

McDonalds unveiled its big turnaround strategy this morning. The main focus will be reorganization into four new corporate segments in an effort to strip away unwanted layers of management. McDonald's will also refranchise more than 3,000 restaurants through 2018, bringing its total percentage of franchised restaurants to 90% from 81% globally. Improving food quality will be a top priority. Shares of MCD are more or less unchanged on the news.

There were a few minor deals announced this morning, making for a subdued merger Monday. Ciena reached an agreement to acquire SDN software designer Cyan for $4.75/shr in stock and cash, for a $400 million deal. PE company DC Capital proposes offer to acquire Hill International for $5.50/shr. Patterson Companies snapped up Animal Health International, Inc. for $1.1B in cash.

Looking Ahead

- 12:00 (IT) Italy Apr New Car Registrations Y/Y: No est v 15.1% prior
- 12:00 (IT) Italy Apr Budget Balance: No est v -€19.6B prior
- 12:25 (US) Fed's Evans speaks on Economy and Monetary Policy in Indiana
- 13:00 (MX) Mexico Apr IMEF Manufacturing Index: 51.6e v 51.4 prior; Non-Manufacturing Index: 49.8e v 49.3 prior
- 14:00 (BR) Brazil Apr Trade Balance Monthly: $0.2Be v $0.5B prior; Total Exports: $15.0Be v $17.0B prior; Total Imports: $14.9Be v $16.5B prior
- 15:10 (US) Fed's Williams speaks at Pacific Community Ventures Luncheon
- 16:00 (US) Crop Condition Report
- 17:00 (CO) Colombia Apr PPI Domestic M/M: No est v % prior; Y/Y: No est v % prior
- 20:30 (TW) Taiwan Apr CPI Y/Y: -0.7%e v -0.6% prior; WPI Y/Y: -7.9%e v -8.6% prior
- 21:00 (PH) Philippines Apr CPI M/M: +0.3%e v -0.1% prior; Y/Y: 2.4%e v 2.4% prior; CPI Core Y/Y: 2.7%e v 2.7% prior
- 21:30 (AU) Australia Mar Trade Balance: -A$1.0B v -A$1.3B prior