The suggestion that Syrian President Bashar al-Assad could avoid
military intervention by giving up his chemical weapons to
international regulators has quickly grown into a possible
non-violent resolution to the crisis in Syria.
The proposal, backed by Russia, has been named a possible
breakthrough by President Obama, who will spend the day discussing
the matter with US lawmakers before addressing the American public
on Tuesday night.
In other news around the markets:
In Japan, Prime Minister Shinzo Abe has asked the country's
Economic and Finance Ministers to put together a stimulus package
by the end of September that would help the economy cope with the
planned sales tax hike. Although the Japanese government has not
yet decided whether or not to move forward with plans to raise the
sales tax, recent economic indicators have suggested that the
economy could withstand a tax increase. On September 23rd, the
Securities and Exchange Commission will lift a ban that prevents
privately held businesses from asking for funding or investments
via advertisements. The SEC ban has been in place for 80 years, and
the change has some regulators worried that loosening the rules
could pave the way for scams and fraud. On Wednesday, Verizon
communications is set to have the largest ever debt sale at which
it is expected to raise at least $20 billion. The debt being sold
is expected to range in maturity from three to 30 years and the
funds raised will help pay for the company's $130 billion buyout of
Vodafone, the company's US wireless joint venture partner. In a
speech on Monday, the UK's Chancellor of the Exchequer George
Osborne claimed the UK's economy was "turning a corner" after data
from the second quarter showed signs of considerable economic
growth. Osborne defended his government's austerity program and
highlighted the importance of continuing with spending cuts and tax
hikes in order to close the nation's budget gap.
Asian markets rallied as tension between the West and Syria
eased. The Japanese Nikkei was up 1.54 percent, the Shanghai
composite was up 1.15 percent and the Shenzhen composite gained
0.77 percent. Indonesia's JSX composite gained 3.19 percent and the
Hang Seng index was up 0.84 percent.
European markets were up across the board on Tuesday morning,
the UK's FTSE gained 0.77 percent and the eurozone's STOXX 600 was
up 0.97 percent. The German DAX had the largest gains, up 1.37
percent and the Spanish IBEX was up 1.22 percent.
Energy futures tumbled as tension in the Middle East eased.
Brent futures lost 0.40 percent and traded at $113.27 per barrel
and WTI futures were down 0.71 percent. Metals were down across the
board as well, gold lost 0.66 percent and sliver was down 1.51
The euro gained against the dollar and traded at $1.3249, but
the yen lost 0.45 against the green back and traded at 100 yen to a
dollar. The pound gained 0.04 percent against the dollar and the
rupee gained 1.49 percent against the dollar.
Earnings Reported Yesterday
Notable companies that reported earnings on Monday included:
Five Below, Inc. (NASDAQ:
) reported second quarter EPS of $0.11 on revenue of $117.10
million, compared to last year's EPS of $0.04 on revenue of $86.82
million. PVH Corp. (NYSE:
) reported second quarter EPS of $1.39 on revenue of $1.97 billion,
compared to last year's EPS of $1.25 on revenue of $1.34 billion.
Casey's General Store (NASDAQ:
) reported first quarter EPS of $1.43 on revenue of $2.11 billion,
compared to last year's EPS of $1.01 on revenue of $1.87 billion.
Hovnanian Enterprises Inc. (NYSE:
) reported second quarter EPS of $0.06 on revenue of $478.40
million, compared to last year's EPS of $0.25 on revenue of $387.01
Stocks moving in the pre-market included:
NRG Energy (NYSE:
) lost 5.09 percent in pre-market trade after ending 1.3 percent
higher on Monday. Citigroup (NYSE:
) gained 0.20 percent in pre-market trade after reports that the
FDIC is selling $2.4 billion in bonds issued by the bank in the
2008 financial crisis. Bank of America (NYSE:
) gained 0.14 percent in pre-market trade despite reports that the
company is planning to cut 2,100 jobs and close 16 mortgage offices
as higher interest rates weaken the demand for loans.
Notable companies expected to report earnings on Tuesday
Pep Boys- Manny, Moe & Jack (NYSE:
) is expected to report EPS of $0.19 on revenue of $539.35 million,
compared to last year's EPS of $0.13 on revenue of $525.67 million.
Christopher & Banks Corporation (NYSE:
) is expected to report a second quarter loss of $0.02 per share on
revenue of $106.70 million, compared to last year's loss of $0.06
per share on revenue of $103.44 million. Unilife Corporation
) is expected to report a loss of $0.10 on revenue of $6.30
million, compared to last year's loss of $0.16 on revenue of
On Tuesday's economic calendar, we saw Chinese retail sales and
industrial production data as well as Australian consumer sentiment
data. Still to come is French industrial production, Italian GDP,
Canadian housing starts, and Norwegian CPI and core inflation.
Happy trading and good luck!
For a recap of Monday's market action, click .
Tune into Benzinga's pre-market info show with Dennis Dick and
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