>>> HSBC may receive Qatari and Chinese interest for Turkish operations - report

SBC may receive Qatari and Chinese interest for Turkish operations - report (translated)

HSBC's planned sale of its Turkish private banking operations may attract Qatari and Chinese interest, Turkish-language Dunya reported.

The article noted, based on unidentified sources, that HSBC is considering divesting operations in four countries including Turkey, where its profits are low. The company would still like to remain in Turkey in the corporate and commercial banking segments, but may face problems in selling the personal banking operations, the report said.

The existing players in the market may be unwilling to add too many branches at the same time, and given the current market conditions in Turkey, international investors may be reluctant to buy a bank with many branches and seek rather to obtain a license or buy a smaller bank if they want to enter the Turkish market, the item noted.

However, the sale may attract Chinese and Qatari interest, the report added.

HSBC had TRY 55.9m in losses in 2014 and TRY 33.8bn (USD 12.63bn) in assets by the end of the year. The bank had 291 branches as of end of March 2015 with 5,536 employees.



Dunya

>>> Mediaset BoD nominates Pier Silvio Berlusconi deputy chairman and chief exec

Mediaset BoD nominates Pier Silvio Berlusconi deputy chairman and chief executive
The Board of Directors of Mediaset, elected by the Annual General Meeting of the Shareholders on 29 April, met 30 April under the chairmanship of Fedele Confalonieri.

Pier Silvio Berlusconi was nominated deputy chairman and chief executive.

The Executive Committee was also established, comprising five members: the chairman, the deputy chairman and chief executive and the directors Gina Nieri, Marco Giordani and Giuliano Adreani.

The Board also appointed Giuliano Adreani, chairman of the subsidiary Publitalia, with the role of supporting the chief executive of Mediaset in the definition of the Group's strategic positioning in the advertising market and commercial relationships with key clients.

The Board of Directors also examined the independence of its directors, pursuant to Art. 147 ter of the Single Finance Act and the Self-disciplinary Code for listed companies approved by Borsa Italiana, on the basis of the information provided by the interested parties and other information available to the company.

It is the view of the Board of Directors that directors Franco Bruni, Fernando Napolitano, Michele Perini, Alessandra Piccinino, Carlo Secchi and Wanda Ternau are in full compliance with the requisites of independence pursuant to Art. 148, para 3 of the Single Finance Act.

It is also the view of the Board of Directors that the same directors are in full compliance with the requisites of independence foreseen by the Self-disciplinary Code for listed companies approved by Borsa Italiana.

With regard to such requisites, it should be noted that the Board recognised the independence of the director Carlo Secchi, despite having been a director of the company for nine out of the last twelve years, on the basis of the independent judgement demonstrated and his undoubted professional qualities.

The Board of Directors then proceeded to establish the following committees:
- the Control and Risk Committee, made up by the directors Carlo Secchi (Chairman), Fernando Napolitano and Franco Bruni
- the Remuneration Committee, made up by the directors Michele Perini (Chairman), Bruno Ermolli and Fernando Napolitano
- the Governance and Appointments Committee, made up by the directors Carlo Secchi (Chairman), Michele Perini and Wanda Ternau
- the Independent Committee for operations with related parties, made up by the directors Michele Perini (Chairman), Carlo Secchi and Alessandra Piccinino.

>>> FedEx and TNT Express confirm making timely progress on preparations for Off

FedEx and TNT Express confirm making timely progress on preparations for Offer
Reference is made to the joint press release by FedEx Corporation (FedEx) and TNT Express N.V. (TNT Express) dated 7 April 2015 in respect of the intended recommended public cash offer for all issued and outstanding ordinary shares in the capital of TNT Express at an offer price of EUR 8.00 (cum dividend) for each TNT Express ordinary share (on a fully diluted basis), subject to customary conditions (the Offer).

Status update for FedEx's Intended Offer for TNT Express

Pursuant to the provisions of Section 7, paragraph 1 sub a of the Decree requiring a public announcement within four weeks following the announcement of an intended public offer to provide a status update, FedEx and TNT Express provide the following joint update.

FedEx and TNT Express confirm that the companies are making timely progress on the preparations for the Offer. FedEx expects to submit a request for review and approval of its Offer Document with the Netherlands Authority for the Financial Markets (Stichting Autoriteit Financiële Markten, AFM) in any event before June 30, 2015, which is the date by which under Dutch law a request for approval must be submitted to the AFM.

In addition, FedEx and TNT Express confirm that the process to obtain the required regulatory merger control approvals for the Offer is proceeding without delays. The Offer will be conditional upon FedEx obtaining the required competition clearances in the European Union, China, Brazil and, to the extent applicable, the United States of America. FedEx and TNT Express remain confident that substantive anti-trust concerns, if any, can be addressed adequately and in a timely fashion. Although FedEx and TNT Express aim to obtain the required regulatory clearances as soon as possible, it is noted that completing the formal clearance procedures could take up to one year. As such, it may be required to obtain an exemption from the AFM to (further) extend the offer period.

>>> What to look at today - 1st of May 2015 (most mkt closed- UK Open)

Dow-1,08% S&P-1,01% Nasdaq-1,64% Russell-2,15%
US Market closed lower, s&P was not able to close above its 50dMA. Technmology leaded teh move. AAPL -2,7% on WSJ Report of component issue intheiWatch (AAC). All ten sectors finished the day in negative territory with energy (-0.4%) succumbing to the pressure during late afternoon action. The sector displayed intraday strength thanks to crude oil's 1.8% advance to $59.63/bbl. For the month, the energy sector gained 6.6% while crude oil spiked 20.8%...volume were above avergae at more than 1bil shares (month end effect)...USafter Hours OXGN +12.2%, ELLI +10%, EXPE +4.5%, LNKD -21.2%, PXLW -14%, FSLR -4.3% following earnings/guidance...ALTR +4,4% Reuters reporting that standstill agreement between co and Intel (INTC) will expire on June 1...Relatively quiet session in Asia today, as markets in China, Hong Kong, Taiwan, Singapore, and South Korea are closed for holiday...China posted official PMI data for Apr. Manufacturing PMI was at 50.1, slightly beat consensus of 50.0, while Services PMI at 53.4, slowed from 53.7 in prior month. AUD/USD little changed after those data. China Stats Bureau said China manufacturing still faces downward pressure, and non-manufacturing growth slows. AUD/USD little changed after China data.

Eur$ 1,1224

Macro
- China April Manufacturing PMI 50.1; Est. 50.0
- Greece Said to Resume Sale Process for Piraeus Port Next Week

Keep an eye on :
- BARC LN : Barclays Starts GBP100m Fund to Finance U.K. Tech Startups
- BMPS IM : Monte Paschi, Nomura in Talks to End Derivative Trade: Reuters
- BZU IM : Buzzi Unicem Offer for Sacci Not Accepted by Banks, Creditors
- COLT LN : Colt Group 1Q Sales Decline to EU394.6m; Ebitda Rises
- GSK LN : Glaxo’s Breo Ellipta Asthma Treatment Wins FDA Approval
- LG FP : Lafarge Upgraded at Baader-Helvea on Eurocement Merger Support
- LLOY LN :  Lloyds 1Q Underlying Profit Beats Est.: NIM to Beat Forecast, Lloyds CFO Culmer Says He Can’t Rule Out Further PPI Provisions
- NHH SM : NH Hotel Postpones Bond Sale Citing Unsatisfactory Markets
- PTC PL : Portugal Telecom 2014 Net Loss EU302.8m vs Net EU331m Y/y
- SKG LN : Smurfit Kappa 1Q Ebitda Falls; Takes Charge in Venezuela
- SYNN VX : Monsanto Is Said to Approach Syngenta Again About a Takeover
- TEN IM : Tenaris 1Q Net $222m vs Est. $266m; Ebitda Margin Narrows
- TNTE NA : FedEx, TNT: Formal Clearance Procedures Could Take up to 1 Yr
- DG FP : Orix, Vinci Airports Consider Joint Bid for Airports in Japan
- VM/ LN : Virgin Money 1Q Gross Mortgage Lending Up 34%
- VIV FP : *VIVENDI RATED UNDERWEIGHT VS NOT RATED AT JPMORGAN

>>> After Hours Summary: OXGN +12.2%, ELLI +10%, EXPE +4.5%, LNKD -


After Hours Summary: OXGN +12.2%, ELLI +10%, EXPE +4.5%, LNKD -21.2%, PXLW -14%, FSLR -4.3% following earnings/guidance

After Hours Gainers:

Companies trading higher in after hours in reaction to earnings: OCN +9%, ATHN +8.5%, LLNW +7%, CENX +6.6%, UVE +5.1%, CEMP +4.8%, BRKS +4.5%, COHU +4.1%, NTRI +4%, EXEL +3.9%, SWKS +3.7%, HABT +3%, EEP +3.2%, MOBL +3%, WU +2.6%, GERN +2.5%, EMN +2.4%, GILD +2.2%, FEYE +2%, MXL +2%, BYD +1.4%, NKTR +1.4%, THG +1.1%, RGC +1.1%, LEG +1.1%, EGO +1%, CHSP +1%, FLR +0.8%

Companies trading higher in after hours in reaction to news: ALTR +4.4% (Reuters reporting that standstill agreement between co and Intel (INTC) will expire on June 1), SRNE +2.7% (announced appointment of Mark Durand as CFO), AEHR +1.8% (announced an order receipt for an ABTS burn-in and test system from a Chinese customer), ELS +1.3% (filed mixed securities shelf offering), CHSP +1.0% (acquired the Ace Hotel and Theater for $103 mln), LUV +0.9% (filed for offering of debt securities and common stock), FNMA +0.7% (released March 2015 monthly summary; Book of Business increased at a compound annualized rate of 0.4%)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings: HTCH -15.3%, ARAY -14%, PODD -13.9%, CTCT -9.9%, TRMB -6.6%, DWA -5.2%, ABAX -4.7%, CTRL -4.4%, COLM -4.3%, RKUS -4.1%, FRGI -3.1%, JDSU -3%, V -2%, SCSC -2%, TUES -2%, SPF -1.9%, BMRN -1.8%, HME -1.8%, POL -1.7%, FBHS -1.3%, EVHC -1.2%, TXTR -0.7%, DGI -0.5%, SBSI -0.4%

Companies trading lower in after hours in reaction to news: NRX -6.7% (announced proposed offering of common stock; gross proceeds expected to be $30 million), AXAS -4.5% (announced the acquisition of an additional Bakken/Three Forks interest, the reaffirmation of its borrowing base and an operations update), HERO -0.6% (announced extension of termination date of Hercules 261 contract), GWB -0.5% (priced upsized 20 mln share offering by selling shareholders at $21.50 per share; National Australia Bank increased the offering from original plans to sell 18 mln shares) 

>>> European Brokers Upgrades & Downgrades - 1st of May 2015

>>> Up
*ADMIRAL GROUP RAISED TO EQUALWEIGHT VS UNDERWEIGHT AT BARCLAYS
*ESURE RAISED TO OVERWEIGHT VS UNDERWEIGHT AT BARCLAYS

>>> Down
*BARCLAYS CUT TO SELL VS HOLD AT BERENBERG
*ADMIRAL GROUP RAISED TO EQUALWEIGHT VS UNDERWEIGHT AT BARCLAYS
*TOTAL CUT TO MARKETPERFORM VS OUTPERFORM AT BERNSTEIN

>>> PT Change


>>> Initiation
*AUTO TRADER RATED NEW BUY AT GOLDMAN, PT 320P
*HAVAS RATED NEW CONVICTION BUY AT GOLDMAN

>>> Call
>> Stock
*NOVOZYMES ADDED TO GOLDMAN CONVICTION BUY LIST
*WOLTERS KLUWER EXITS GOLDMAN CONVICTION BUY LIST, STAYS BUY
*WPP REMOVED FROM GOLDMAN CONVICTION BUY LIST, STAYS BUY

(BN) Monsanto Is Said to Approach Syngenta Again About a Takeover (3)

Monsanto Is Said to Approach Syngenta Again About a Takeover (3)
2015-04-30 23:02:52.76 GMT


(Updates with Bayer’s no comment in seventh paragraph.)

By Andrew Noël, Aaron Kirchfeld and Ed Hammond
(Bloomberg) -- Monsanto Co., the world’s largest seed
company, has approached Syngenta AG about a takeover, almost a
year after a previous attempt fell apart, according to people
familiar with the matter.
Monsanto has discussed its interest with Syngenta in recent
weeks, said two of the people, asking not to be identified
discussing private information. Syngenta, which has a market
value of about 29 billion Swiss Francs ($31 billion), has
concerns about a combination, which would face antitrust
hurdles, the people said, and the companies may fail to reach an
agreement, they said.
Combined with Syngenta, Monsanto would become the largest
player in the world for both seeds and crop chemicals and a
formidable competitor to Bayer AG, BASF SE and Dow Chemical Co.
Basel-based Syngenta is the world’s largest maker of crop
chemicals whereas St. Louis-based Monsanto is the largest maker
of seeds and dominates the global market for genetically
modified crops like corn and soybeans.
Monsanto jumped as much as 3.6 percent in afterhours
trading, after closing at $113.96 in New York, giving the
company a market value of $54 billion. A spokeswoman for
Monsanto declined to comment, while a representative for
Syngenta had no immediate comment when reached by phone.

Earlier Effort

The companies held preliminary talks last year with
advisers about a combination, before Syngenta’s management
decided against negotiations, people familiar with the matter
said at the time. No agreement was made after concerns were
raised about the strategic fit, antitrust issues and relocating
the company.
To address antitrust issues, Monsanto has planned for a
deal that would include a sale of portions of the combined
business, one of the people said Thursday. The U.S. company last
year reached out to potential bidders of those assets, including
Bayer, this person said.
A spokesman for Bayer said the company doesn’t comment on
rumors or speculation.

Seed Probes

Monsanto’s dominance in the seed industry was the subject
of U.S. antitrust probes at the federal and state levels a few
years ago. The U.S. Department of Justice’s antitrust division
dropped its probe into possible anti-competitive practices in
the seed industry in 2012, and a month later at least seven
states led by Iowa ended their five-year investigation without
taking action.
Opposition to genetically modified crops led BASF SE in
2012 to announce a relocation to the U.S. from Germany of the
plant-science division that develops such crops.
During the talks last year, a purchase of Syngenta was --
in part -- viewed as an opportunity for Monsanto to move its tax
location to Switzerland, where corporate tax rates are lower
than in the U.S. Such deals, known as inversions, have since
come under increased scrutiny from U.S. legislators, and it’s
not certain that any revived offer would be structured to move
Monsanto’s official address.

For Related News and Information:
Monsanto Said to Have Considered $40 Billion Syngenta Deal
Monsanto Says States Closed 5-Year Probe of Seeds and Herbicide
Top Stories:TOP<GO>

--With assistance from Jack Kaskey in Houston, Ruth David in
London and Jeffrey McCracken in New York.

To contact the reporters on this story:
Andrew Noël in London at +44-20-3525-2304 or
anoel@bloomberg.net;
Aaron Kirchfeld in London at +44-20-3525-8830 or
akirchfeld@bloomberg.net;
Ed Hammond in New York at +1-212-617-1963 or
ehammond12@bloomberg.net
To contact the editors responsible for this story:
Mohammed Hadi at +1-212-617-2914 or
mhadi1@bloomberg.net
Elizabeth Wollman

Asian Mid-session Update: Quiet session as Shanghai, Hong Kong, Seoul markets closed for holiday; Minor moves in fx markets


***Economic Data***
- (CN) CHINA APR MANUFACTURING PMI: 50.1 V 50.0E
- (CN) CHINA APR NON-MANUFACTURING PMI: 53.4 V 53.7 PRIOR
- (JP) JAPAN MAR REAL CASH EARNINGS Y/Y: -2.6% V -2.3% PRIOR; LABOR CASH EARNINGS Y/Y: 0.1% V 0.4%E
- (JP) JAPAN APR TOKYO CPI Y/Y: 0.7% V 0.7%E; CPI EX FRESH FOOD Y/Y: 0.4% V 0.5%E; CPI EX FOOD, ENERGY Y/Y: 0.0% V 0.2%E
- (JP) JAPAN MAR NATIONAL CPI Y/Y: 2.3% V 2.2%E; CPI EX FRESH FOOD Y/Y: 2.2% V 2.0%E; CPI EX FOOD, ENERGY Y/Y: 2.1% V 2.0%E
- (JP) JAPAN MAR JOBLESS RATE: 3.4% V 3.5%E (matches lowest reading since Aug 1997)
- (JP) JAPAN MAR OVERALL HOUSEHOLD SPENDING Y/Y: -10.6% V -11.8%E; 12TH MONTH OF DECLINE
- (JP) JAPAN APR FINAL MARKIT/JMMA MANUFACTURING PMI: 49.9 V 49.7 PRELIM
- (KR) SOUTH KOREA APR CPI M/M: 0.1% V 0.1%E; Y/Y: 0.4% V 0.4%E; CPI CORE Y/Y: 2.0% V 2.0%E
- (KR) SOUTH KOREA APR TRADE BALANCE: $8.5B V $7.2BE
- (AU) AUSTRALIA Q1 PPI Q/Q: 0.5% V 0.1% PRIOR; Y/Y: 0.7% V 1.1% PRIOR
- (AU) AUSTRALIA APR AIG PERFORMANCE OF MANUFACTURING INDEX: 48.0 V 46.3 PRIOR (5th consecutive contraction)
- (AU) AUSTRALIA APR RPDATA/RISMARK HOUSE PRICE INDEX M/M: 0.8% V 1.4% PRIOR
- (NZ) NEW ZEALAND APR QV HOUSE PRICES: 8.3% V 7.7% PRIOR

***Index Snapshot (as of 02:30 GMT)***
- Nikkei225 -0.3%, S&P/ASX +0.3%, Kospi closed, Shanghai Composite closed, Hang Seng closed, Jun S&P500 +0.2% at 2,082

***Commodities/Fixed Income***
- Jun gold flat at $1,182/oz, Jun crude oil +0.1% at $59.69/brl, May copper +0.1% at $2.89/lb
- (US) Weekly Fed Balance Sheet Total Assets for week ending Apr 30th: $4.53T v $4.49T prior; Reserve Bank Credit: $4.44T v $4.45T prior; M1: -$5.5B v -$61.5B prior; M2: -$1.9B v -$40.5B prior
- (JP) Japan investors bought net ¥185B in foreign bonds v bought ¥434B in prior week; Foreign investors bought net ¥821B in Japan stocks v bought ¥599B in prior week
- (JP) BOJ offers to buy ¥70B in JGBs with maturity less than 1-yr, ¥375B in 1-3yr JGBs and ¥375B in 3-5yr JGBs
- (AU) Australia MoF (AOFM) sells A$700M in 3.25% bonds due 2018; Avg yield: 1.9377%; Bid-to-cover: 4.09x

***Market Focal Points/FX***
- Relatively quiet session in Asia today, as markets in China, Hong Kong, Taiwan, Singapore, and South Korea are closed for holiday. US Dollar remained weak against major currencies. EUR/USD traded above 1.12 levels, while USD/JPY not much changed around 119.60 levels. New Zealand Finance English today said RBNZ may be changing view on rates as inflation slows. This is in line with RBNZ's statement last night, saying RBNZ would cut interest rate on weaker demand, and lower inflation pressure. NZD/USD traded lower by about 25pips to as low as 0.7570 levels after those comments.

- China posted official PMI data for Apr. Manufacturing PMI was at 50.1, slightly beat consensus of 50.0, while Services PMI at 53.4, slowed from 53.7 in prior month. AUD/USD little changed after those data. China Stats Bureau said China manufacturing still faces downward pressure, and non-manufacturing growth slows. AUD/USD little changed after China data.

***Equities***
US equities / ADRs:
- SYT: Reportedly gets takeover approach from Monsanto; Syngenta said to have concerns about potential antitrust barriers to a deal - press; +13.7% afterhours
- ELLI: Reports Q1 $0.33 v $0.20e, R$54.2M v $46.6Me; +10.0% afterhours
- ATHN: Reports Q1 $0.24 (adj) v $0.13e, R$206.4M v $205Me; +6.1% afterhours
- EXPE: Reports Q1 -$0.03 v +$0.07e, R$1.37B v $1.35Be; +5.3% afterhours
- GILD: Reports Q1 $2.94 v $2.31e, R$7.59B v $6.76Be; +2.6% afterhours
- BYD: Reports Q1 $0.13 v $0.10e, R$550.6M v $549Me; +1.4% afterhours
- FLR: Reports Q1 $0.96 v $0.98e, R$4.55B v $5.31Be; +0.8% afterhours
- AIG: Reports Q1 $1.22 v $1.18e; +0.6% afterhours
- ISIS: Earns $10M milestone payment from BIIB; +0.5% afterhours
- AKS: Announces Price increase for carbon steel products; flat afterhours
- WU: Reports Q1 $0.39 v $0.38e, R$1.32B v $1.30Be; -0.4% afterhours
- V: Reports Q2 $0.63 v $0.62e, R$3.41B v $3.33Be; -1.6% afterhours
- SPWR: Reports Q1 $0.13 v $0.09e, R$430.6M v $531Me; -2.1% afterhours
- DWA: Reports Q1 -$0.25 (adj) v -$0.43e, R$166M v $174Me; -2.2% afterhours
- FSLR: Reports Q1 -$0.62 (GAAP) v -$0.18e, R$469M v $636Me; Caterpillar Expands Renewable Power Generation Offerings in Conjunction with First Solar; -3.8% afterhours
- FLS: Reports Q1 $0.58 v $0.70e, R$1.01B v $1.05Be; To cut workforce by 5%; -7.0% afterhours
- CTCT: Reports Q1 $0.22 v $0.19e, R$90.4M v $91.1Me; -9.9% afterhours
- LNKD: Reports Q1 $0.57 v $0.57e, R$638M v $638Me; -21.0% afterhours

- TSLA: Launches batteries for homes, businesses and utilities

Notable movers by sector:
- Consumer Discretionary: Japan Airlines 9201.JP -2.1% (FY14/15 results); Virgin Australia VAH.AU -0.5% (Q3 results)
- Materials: St Barbara SBM.AU +15.2% (sells asset)
- Energy: Tohoku Electric 9506.JP -1.6% (FY14/15 results)
- Technology: Seiko Epson 6724.JP +1.6% (FY14/15 results); Fujitsu 6702.JP -18.2% (FY14/15 results)

(BN) Monsanto Still Has Heart Set on Biggest Chemical Deal: Real M&A


Monsanto Still Has Heart Set on Biggest Chemical Deal: Real M&A
2015-04-30 21:40:18.935 GMT


(For a Real M&A column news alert: {SALT REALMNA <GO>}.)

By Brooke Sutherland
(Bloomberg) -- Monsanto Co. is willing to give the biggest
acquisition in the chemical industry -- and one of the more
expensive -- another shot.
The $54 billion U.S. seed company has approached Syngenta
AG about a takeover almost a year after the two broke off merger
talks, according to people familiar with the matter. With
Syngenta valued at $31 billion, a deal would be the largest ever
struck for a chemical maker, even before accounting for a
takeover premium.
The biggest deal targeting a chemical producer to date was
the combination of Hoechst and Rhone-Poulenc SA, a more than $20
billion deal that created drugmaker Aventis SA in 1999. The
largest transaction among agricultural-chemical makers was the
merger between Russian potash producers OAO Uralkali and OAO
Silvinit in 2011, valued at less than $10 billion.
Syngenta trades at about 12.5 times its earnings before
interest, taxes, depreciation and amortization in the last 12
months. Large chemical companies purchased in the last decade
have commanded a median multiple of about 9 times, so a purchase
of Syngenta would also rank as one of the industry’s more
expensive deals, according to data compiled by Bloomberg.

For Related News and Information:
Monsanto Is Said to Approach Syngenta Again About a Takeover
Novozymes Tie-Up With Monsanto Raises Prospect of Joint M&A
No Monsanto, No Problem for Syngenta on Path to Deal: Real M&A
Bloomberg Intelligence, agricultural chemicals: BI AGCHG <GO>
Real M&A columns: NI REALMNA <GO>
Top deal stories: DTOP <GO>

To contact the reporter on this story:
Brooke Sutherland in New York at +1-212-617-0448 or
bsutherland7@bloomberg.net
To contact the editors responsible for this story:
Beth Williams at +1-212-617-2307 or
bewilliams@bloomberg.net
Mohammed Hadi

>>> US Close Dow-1,08% S&P-1,01% Nasdaq-1,64% Russell-2,15%

Closing Market Summary: April Ends on Cautious Note; Dollar Index Logs First Monthly Decline Since June

The major averages ended April on a lower note, but managed to escape with monthly gains. The S&P 500 lost 1.0% and narrowed its April advance to 0.9% while the Nasdaq Composite (-1.6%) underperformed today and ended the month (+0.8%) just behind the benchmark index.  

Equity indices faced selling pressure from the get-go with the largest sector—technology (-1.6%)—leading the daylong retreat. The influential group faced broad-based weakness with its top component—Apple (AAPL 125.15, -3.49)—sliding 2.7% after the Wall Street Journal reported that some watch components provided by AAC Technologies (AACAY 53.31, -2.79) may be defective. That being said, other sector members also struggled with Yelp (YELP 39.36, -11.92) cratering in reaction to its quarterly report. Shares of YELP tumbled 23.2% in reaction to disappointing earnings/revenue and cautious revenue guidance for Q2.

The tech sector contributed to the underperformance of the Nasdaq, but the index also faced significant weakness in the biotech group. The iShares Nasdaq Biotechnology ETF (IBB 333.66, -11.15) lost 3.2% and settled just above its 100-day moving average (331.05). The ETF dropped 2.8% in April while the health care sector (-1.5%) underperformed today and lost 1.4% for the month.

Elsewhere among influential groups, the industrial sector (-0.9%) ended ahead of the broader market, but that masked relative weakness among transport stocks. The Dow Jones Transportation Average lost 1.3%, ending the month lower by 1.7%. On the earnings front, freight carrier Con-way (CNW 41.10, -1.40) lost 3.3% after reporting a one-cent beat on light revenue while shipper Kirby (KEX 78.53, -3.37) dropped 4.1% after its cautious guidance overshadowed a one-cent beat.

All ten sectors finished the day in negative territory with energy (-0.4%) succumbing to the pressure during late afternoon action. The sector displayed intraday strength thanks to crude oil's 1.8% advance to $59.63/bbl. For the month, the energy sector gained 6.6% while crude oil spiked 20.8% amid a pullback in the dollar.

Fittingly, the Dollar Index (94.78, -0.43) retreated again today, which represented the seventh consecutive decline. Greenback weakness was a recurring theme in April with the Dollar Index losing 3.5% for the month after posting nine monthly gains. The euro benefitted from the pullback in the dollar with the single currency rising from 1.0731 to 1.1225 in April.

Treasuries retreated in the morning, but reclaimed all of their losses during the day. The 10-yr yield ended at 2.04%, representing the highest level since mid-March.

Today's participation was above average with month-end flows likely responsible for the difference. As a result, more than a billion shares changed hands at the NYSE floor.

Economic data included initial claims, Personal Income/Spending data, Q1 Employment Cost Index, and Chicago PMI:
  • The initial claims level declined to 262,000 for the week ending April 25 from an upwardly revised 296,000 (from 295,000) while the consensus expected a decline to 290,000 
    • According to the Department of Labor, there were no special factors that impacted the initial claims reading, which hit the lowest level since April 2000 
  • Personal income growth was virtually flat in March after increasing 0.4% in February while the consensus expected an increase of 0.2% 
    • That was the weakest personal income increase since December 2013 
    • Personal spending increased 0.4% in March after increasing an upwardly revised 0.2% (from 0.1%) in February while the consensus expected an increase of 0.5% 
  • The Employment Cost Index increased 0.7% in Q1 2015 after increasing a downwardly revised 0.5% (from 0.6%) in Q4 2014 while the consensus expected an increase of 0.6% 
    • Wages and salaries increased 0.7% in the first quarter, up from a 0.6% increase in Q4 2014 
    • Benefits spending growth held steady at 0.6% 
  • The Chicago PMI increased to 52.3 in April from 46.3 in March while the Consensus expected an increase to 50.0 
    • The increase ended two consecutive monthly contractions 
    • The Production Index increased to 52.7 in April from 49.3 in March 
Tomorrow, the ISM Index for April (consensus 51.9), March Construction Spending (expected 0.4%), and the final reading of the April Michigan Sentiment Index (consensus 96.0) will all be released at 10:00 ET.
  • Nasdaq Composite +4.3% YTD 
  • Russell 2000 +1.3% YTD 
  • S&P 500 +1.3% YTD 
  • Dow Jones Industrial Average +0.1% YTD