European market jitters are continuing after the long weekend ahead of a European Central Bank rate decision and after Moody's Investors Service downgraded the European Union's credit outlook from "stable" to "negative". Moody's has also warned it will cut the EU's sovereign AAA rating. Investors today will be awaiting for the U.S. Institute for Supply Management to issue its manufacturing index for August. Economists expect a reading of 49.9.
Here are the stocks we're watching today:
*Campbell Soup Co. will report its fiscal fourth quarter earnings on Tuesday. Analysts expect to see earnings of 39 cents per share on revenue of $1.59 billion, which would mark more than a 25 per cent earnings-per-share increase compared to 2011. The Camden, N.J.-based 143-year-old company has seen its soup business decline in recent years but investors would be wise to take a closer look at the moves it's been making to improve sales.
*Smithfield Foods Inc., the world's largest pork producer and processor headquartered in Smithfield, Virginia, saw its quarterly profit fall below analysts' expectations. Weak demand in the U.S. has hurt the company's fresh pork business. Smithfield's first quarter net income fell to $61.7 million, or 40 cents per share, from $82.1 million, or 49 cents per share, one year ago.
*Valeant Pharmaceuticals International Inc., is making headlines this morning after the Laval, Que.-based company acquired Scottsdale, Ariz.-based Medicis Pharmaceutical Corp. for $2.6 billion. It is the 15th acquisition Valeant has made this year. The deal, valued at $44 per share, has been approved by both companies' boards of directors and is expected to close by mid-2013.
*General Motors Company will report its monthly sales results for August on Tuesday. While many think GM may be inching towards another bankruptcy as it implements a management reorganization that will see decision-making shifted from regional heads to global leaders, others remain hopeful but await solid results.
*United States Steel Corp., and the United Steelworkers union announced a tentative agreement over the holiday long weekend on a three-year deal covering more than 16,000 workers. The company said the talks covered employees at domestic flat-rolled and iron ore mining facilities as well as tubular operations in Lorain, Ohio, and Fairfield, Ala. Details of the contract have yet to be released.