News Summary for July 13, 2011

This is your Benzinga news summary and traders' outlook for Wednesday, July 13, 2011, covering headlines from overnight and Wednesday’s pre-market session.

Today in domestic pre-market trading, U.S. equity futures are trading higher as investors wait to see what Federal Reserve Chairman Ben Bernanke says about the U.S. economy at 10:00 a.m. The U.S. dollar is trading slightly lower this morning as markets overseas traded higher.

Overseas, European markets were higher on the session. Britain's FTSE 100 added over 0.3% and France's CAC 40 rose over 0.25% on the session. Asian stocks were stronger as well. China’s Shanghai Index jumped 1.5%, Japan's Nikkei 225 added 0.4% and Hong Kong's Hang Seng Index rose over 1%.

Data released last night, which fueled the rally overseas, showed that in the April to June quarter, the Chinese economy grew at a faster-than-expected rate, at 9.5%.

Yesterday, Moody’s downgraded Ireland’s debt rating to Ba1 or junk status. Moody’s also kept Ireland’s outlook negative.

On the economic calendar today, MBA mortgage applications came in at -5.1% from a -5.2% prior reading. The Import Price Index for the period of June is set to be reported at 8:30 a.m. and the U.S. monthly budget statement is due at 2:00 p.m.

On the commodity front, gold and silver futures are higher in pre-market trading, with silver trading 2% higher. However, energy futures are trading flat with crude oil near the $97 per barrel level, and gasoline futures near the $3.08 level; however, natural gas futures are over 0.5% higher on the session. Finally, copper futures are trading slightly higher, up 0.25% on the session.

On the earnings front, ASML Holding ASML net profit rose to €432 million ($604.7 million), from €239 million, in the year-earlier period. Its sales jumped 43% to €1.529 billion. Analysts were expecting a net profit of €411.6 million on sales of €1.5 billion.

Also, Capital One COF reported its quarterly earnings at $911 million, or $1.97 per share, up from $608 million, or $1.33 per share, in the year-ago period. Analysts were expecting a profit of $1.73 per share. The company also announced a $2 billion common stock offering. Read more here.

In corporate news, Electronic Arts Inc. ERTS announced an agreement to acquire PopCap Games for $650 million in cash and $100 million in EA shares, or up to $1.3 billion. Read more about this acquisition here.

Also, medical device maker Kinetic Concepts KCI agreed to be acquired by a private equity firm for $4.98 billion in cash or at $68.50 per share.

Finally, notable players reporting after the close today include Marriott MAR and YUM! Brands YUM.

This concludes your news summary for July 13, 2011.