10 Things You Need To Know Before The Opening Bell

Matthew Boesler and Eric Platt

Aug. 20, 2012

AP Images

Good morning. Here's what you need to know.

• Markets in Asia were mostly flat in overnight trade, with Japan's Nikkei up 0.09 percent. Shares in Europe are higher with the exception of the FTSE (down 0.17 percent) and U.S. futures are up slightly (0.2 percent).

• Europe began the week in risk-on mode after reports yesterday that the ECB was considering capping sovereign bond yields at pre-determined levels to aid European countries struggling to contain funding costs. However, the ECB's denial of such a plan this morning sent the euro lower again.

• Leading health insurer Aetna announced Monday plans to acquire Coventry Health for $5.7 billion or $42.08 per share, which will make Aetna one of the biggest providers of government health care.

• Best Buy has named Hubert Joly as its new CEO. Joly is the former CEO of Carlson, the parent company of TGI Friday's and Radisson Hotels. 

• Lowes missed Wall Street's expectations when it reported earnings of $0.64 per share this morning versus estimates of $0.70. The company also cut full-year EPS guidance to $1.64 from $1.83. Shares are down nearly 6 percent in pre-market trading. 

• The Chicago Mercantile Exchange plans on creating the first major European derivatives exchange within days, the Wall Street Journal's Michelle Price reports. The exchange would officially open in the second quarter of 2013 and follows the company's failed attempt at purchasing the LME after the Hong Kong Exchanges and Clearing outbid it.

• The main U.S. economic announcement of the day is the Federal Reserve Bank of Chicago's National Activity Index, scheduled for release at 8:30 a.m. There is no consensus for the report. 

• The Spanish government announced over the weekend that it wanted to see details about the support the ECB is willing to give peripheral bond markets if Spain would submit a formal request for a bailout to the eurozone's bailout mechanisms, the EFSF and ESM.

• China's Shanghai Composite index tumbled to a post-crisis low this morning.  This is a sharp and stunning divergence from the US stock market. Some analysts are concerned this is signaling a hard landing for China's economy.

• Gu Kalai, the wife of former Chinese politician Bo Xilai who was charged for the murder of British businessman Neil Heywood, was imprisoned and given a suspended death sentence for the crime.