PMI data released this week showed that most manufacturers have
been expanding. The eurozone had the biggest success story as
manufacturing PMI for the region rose to its highest level in over
Peripheral countries like the Czech Republic and even Turkey saw
a boost as a result. The US, China and Japan followed suit as well
with improving PMI figures that suggested the global economic
recovery was gaining momentum.
In other news around the markets:
US President Barack Obama's plan to launch a military attack in
Syria received support from key members of Congress on Tuesday,
making military action in Syria more likely. Obama's proposal
includes limited military strikes that would be designed to punish
Syrian President Bashar al-Assad for his use of chemical weapons.
Russian President Vladimir Putin has cautioned the West about
taking military action in Syria without UN approval. In an
interview on Tuesday, Putin told the Associated Press that he would
support military intervention if evidence proves the Syrian
government used chemical weapons against its civilian; but not
without UN approval. Chinese President Xi Jinping gave an interview
on Tuesday in which he said that China's lackluster economic growth
was the government's choice. Xi said that his leadership team
brought down the country's growth rate so that fundamental problems
could be solved. On Tuesday, LinkedIn filed with the Securities
Exchange Commission for a stock offering worth $1 billion. The Wall
Street Journal reported that the company will offer $1 billion
worth of class A shares, with underwriters having the option to
sell $150 million worth of additional stock.
Asian markets struggled with jitters from the situation in
Syria. The Hang Seng index was down 0.31 percent and the Shenzhen
composite lost 0.07 percent. The Australian ASX 200 fell 0.67
percent, but the Japanese NIKKEI index and the Shanghai composite
gained 0.54 percent and 0.21 percent respectively.
European markets were also dragged down by worries about
military intervention in Syria. Italy's MIB had the largest losses
and shed 1.38 percent. The eurozone's STOXX 600 was down 0.28
percent and the UK's FTSE lost 0.33 percent. The German DAX was
down 0.17 percent and the Spanish IBEX shed 0.38 percent.
n commodity markets, Brent futures were mostly flat with just
0.06 percent gains while WTI futures fell 0.40 percent. Gold
slipped 0.25 percent and silver lost 1.90 percent. Copper was down
1.13 percent and Aluminum lost 0.38 percent.
The euro to dollar ratio was little changed, and the pound
gained 0.19 percent on the dollar. The yen continued to slide
against the dollar, trading at 99.62 and slowly approaching to 100
yen to a dollar mark.
Earnings Reported Yesterday
Notable companies that reported earnings on Tuesday
H&R Block, Inc. (NYSE:
) reported a first quarter loss of $0.40 per share on revenue of
$127.00 million, compared to last year's loss of $0.37 per share on
revenue of $96.49 million. Pike Electric Corp. (NYSE:
) reported fourth quarter EPS of $0.02 on revenue of $200.19
million, compared to last year's EPS of $0.14 on revenue of $178.58
Stocks moving in the pre-market included:
J.C. Penny Company Inc. (NYSE:
) gained 2.20 percent in pre-market trade after Hayman Capital
Management revealed that it owns a 5.2 percent passive stake in the
company. Micron Technology Inc (NASDAQ:
) was up 1.71 percent in premarket trade after the company's
management presented at the 2013 Citi Global Technology Conference.
Halliburton Co (NYSE:
) gained 0.54 percent in pre-market trade following reports that
Trinidad Drilling Ltd. has entered into a joint venture with
Halliburton in which it will provide and operate drilling rigs for
Halliburton on international projects. Carnival Corp (NYSE:
) lost 3.28 percent in pre-market trade as the company continued to
suffer losses from accidents earlier in the year and poor PR.
Notable companies expected to report earnings on Wednesday
CIENA Corporation (NASDAQ:
) is expected to report third quarter EPS of $0.16 on revenue of
$532.28, compared to last year's loss of $0.04 per share on revenue
of $474.09 million. Dollar General Corporation (NYSE:
) is expected to report second quarter EPS of $0.74 on revenue of
$4.36 billion, compared to last year's EPS of $0.69 on revenue of
Wednesday's economic calendar is packed full of important
releases. In Europe, investors will be watching for British,
eurozone, German, Spanish, French, and Italian services PMI. The US
is set to release its beige book, the BOJ will announce its rate
decision and South Korea will release GDP data.
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
(c) 2013 Benzinga.com. Benzinga does not provide investment
advice. All rights reserved.
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