President Obama addressed the US people on Tuesday night and
confirmed that he was planning to put his plan to launch targeted
military attacks in Syria on the shelf, for now. The President,
together with the UN, has agreed to allow Syria to turn over its
chemical weapons in order to avoid a military strike.
There is a lot of skepticism surrounding the proposal, backed by
Syrian ally, Russia, as many worry about stalling tactics. Moving
forward, UN leaders are expected to iron out the details of this
plan and avoid military involvement.
In other news around the markets:
The Bank of Japan's Koji Ishida said on Wednesday that exports will
be a vital part of the country's recovery. He also argued for the
Japanese government's planned sales tax hike, saying it could
increase consumption as it may boost confidence in Japan's economic
outlook. He said the bank is willing to step in with policy changes
if need be, but urged lawmakers not to overreact to a temporary dip
due to the sales tax increase. The Greek Finance Ministry released
data on Tuesday which showed the country was moving in the right
direction and keeping up with the terms of its bailout. The data
showed a primary surplus of 2.9 billion euros so far in 2013,
compared to last year's 1.4 billion euro deficit. The figures
surpassed estimates in the country's bailout plan which forecast a
2.5 billion euro deficit. Immediately following Apple Inc's
announcement of its new, lower cost iPhone 5C, the company's share
prices slipped 0.6 percent to $502.85. On Tuesday afternoon, shares
had fallen below $500, a three percent drop. Suppliers' shares also
slumped following the announcement as many worried that the new
cheaper phone was still too expensive to reach key emerging
markets. In pre-market trade, shares of Apple sit just above $483,
an 11.54 percent drop below Tuesday's close. Reuters reported that
analysts are expecting that the US Federal reserve will announce
the beginning of its tapering plan at next week's policy meeting.
Most see the bank cutting its asset purchases by $10 billion, down
from previous estimates of a $15 billion reduction.
Asian markets were mixed on Wednesday; the Shanghai composite
was up 0.15 percent but the Shenzhen composite lost 0.50 percent.
The KOSPI was up 0.49 percent and Australia's ASX 200 was up 0.64
percent. The Hang Seng index was down 0.42 percent and the Japanese
NIKKEI was flat.
European markets were also mixed, the UK's FTSE was down 0.14
percent and the STOXX 600 was mostly flat with just 0.04 percent
gains. France's CAC 40 was down 0.20 percent and Italy's MIB was up
Brent futures for October delivery rose 0.52 percent while WTI
futures slipped 0.13 percent. Gold gained 0.15 percent and silver
was up 0.36 percent. Copper was up 0.28 percent but aluminum and
tin lost 0.50 percent and 0.44 percent respectively.
The euro and the pound were steady against the dollar and the
yen continued to trade above the 100 yen to one dollar mark. The
rupee gained 0.82 percent against the dollar and the Australian
dollar lost 0.20 percent against the greenback.
Earnings Reported Yesterday
Notable companies that reported earnings on Tuesday
Restoration Hardware (NYSE:
) reported second quarter EPS of $0.49 on revenue of $382.10
million, compared to estimated EPS of $0.43 on revenue of $377.60
million. Christopher & Banks Corporation (NYSE:
) reported a second quarter loss of $0.01 per share on revenue of
$104.20 million, compared to last year's loss of $0.06 per share on
revenue of $103.44 million.
Stocks moving in the pre-market included:
Omnicom Group Inc (NYSE:
) gained 1.03 percent in pre-market trade as the company's merger
with Publicis Groupe SA approaches. Most expect the deal to close
in the last quarter of 2013 or the first quarter of 2014. Morgan
) gained 0.57 percent in pre-market trade after the firm's Finance
Chief announced that company's buy out of Citigroup's stake in
their joint venture will leave Morgan Stanley with large deposits
which it plans to use for lending to corporate and retail clients.
Carnival Corp (NYSE:
) lost 0.86 percent in pre-market trade as the company struggles to
regain passenger confidence following the January 2012 grounding of
a ship in Italy. Apache Corp (NYSE:
) lost 0.38 percent in pre-market trade as a member of the
company's board bought 10,000 of the company shares.
Notable companies expected to report earnings on Wednesday
Men's Wearhouse, Inc. (NYSE:
) is expected to report EPS of $1.14 on revenue of $671.04 million,
compared to last year's EPS of $1.15 on revenue of $662.30 million
Vera Bradley, Inc. (NASDAQ:
) is expected to report EPS of $0.32 on revenue of $124.81 million,
compared to last year's EPS of $0.33 on revenue of $123.04 million.
On Wednesday's economic calendar, investors will be watching for
US crude oil and gasoline inventories, the British unemployment
rate, French non-farm payrolls and current account data and German
Good luck with your mid-week trades!
For a recap of Tuesday's market action, click .
Tune into Benzinga's pre-market info show with Dennis Dick and
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