Good morning. Here's what you need to know.
- Asian markets were mixed in overnight trading with the Nikkei down 0.82 percent after Japan posted a record trade deficit. Europe is moving lower and U.S. stocks are flat.
- Brazil's central bank cut interest rates by 75 basis points to 9 percent. The central bank also said it sees few inflation risks suggesting that they could cut rates some more. Citi: Here's what the 21 hottest emerging markets will do this year >
- Spain sold €2.54 billion in government debt today, slightly exceeding its target. Yields on the 2022 bond climbed to 5.743 percent, while yields on the 2014 bond eased to 3.463 percent.
- Bank of America beat expectations reporting adjusted earnings of $0.31 per share, on revenue of $22.5 billion. Meanwhile, Morgan Stanley also beat when it reported adjusted earnings of $0.71 per share, on revenue of $8.9 billion. Meanwhile, Verizon Communications posted earnings of $0.59 per share, beating expectations. Microsoft is expected to report earnings of $0.57 per share. Don't Miss: The 21 most controversial stocks in the world >
- Yum Brands reported a 73 percent rise in net income to $458 million or $0.76 per share, beating expectations. China continues to be a region of strength for the company with total sales gaining 28 percent.
- Initial jobless claims fell to 386K missing estimates of a drop to 360K, but below revised claims level of 388K for last week >
- In M&A news, Johnson & Johnson got EU clearance for a $21 billion acquisition of Swiss medical device maker Synthes Inc. Meanwhile, GlaxoSmithKline made a hostile $13 per share cash bid for Human Genome Sciences Inc. HGSI rejected the offer.
- India successfully tested a new nuclear-capable missile, the Agni-V with a range of 3,100 miles that could hit targets in China and Eastern Europe.
- Japan posted a 4.41 trillion yen trade deficit for the fiscal year ending March 31. Exports fell 3.7 percent year-over-year, while imports surged 11.6 percent. These 10 countries will command world trade in 2050 >
- Existing home sales for March and the Philadelphia Fed Survey for April will be released at 10 a.m. ET. Consensus is for a rise in existing home sales to a 4.62 million annual rate, and a drop in general business conditions level to 12. Follow the release at Money Game >
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