Markets rallied after news that productive talks between
Republican leaders and President Obama on Thursday may have
resulted in a proposal which will put an end to the debt standoff;
at least temporarily.
A GOP proposal to extend the US government's borrowing authority
for six weeks in exchange for the President's willingness to
negotiate on budget issues has been touted as a major breakthrough
in the ongoing stalemate.
Although no deal has been reached, the offer is the first step
in a compromise between the two sides that could avoid a US default
on October 17.
In other news around the markets:
Libyan Prime Minister Ali Zeidan was abducted from his hotel room
in the early hours of Thursday, only to be released hours later on
the same day. The incident highlighted the country's fragile state
as the country battles a power struggle between the Libyan
government and its militant groups. As expected, the Bank of
England kept its interest rate fixed and did not make any changes
to its bond buying program. Bank of England Governor Mark Carney
has been very vocal about his pledge to maintain an accommodative
stance until UK unemployment falls to 7 percent. US Federal
officials are discussing the possibility of creating a new system
to release sensitive economic data in order to meet the demands of
fast moving financial markets. The government is considering
several options to control data leaks and make the data available
to everyone at the same time. On Thursday, the European Central
Bank and the People's Bank of China announced that the two had
agreed on a currency swap deal. The agreement will allow the ECB to
access up to 350 billion yuan and the PBOC will have 45 billion
euros available. The currency swap underscores the Chinese
currency's growing importance in the marketplace.
Asian markets ended the week on a high note, with the Shanghai
composite posting the largest gains, up 1.70 percent. The Shenzhen
composite gained 1.10 percent, the Japanese NIKKEI rose 1.48
percent and the Hang Seng index was up 1.16 percent.
European markets were mostly higher on Friday, the UK's FTSE was
up 0.65 percent and the eurozone's STOXX 600 gained 0.32 percent.
The German DAX rose 0.37 percent, but the Spanish IBEX lost 0.29
Energy futures slid on Friday, Brent crude futures lost 0.35
percent and WTI futures were down 1.24 percent. Precious metals
also slipped with gold down 0.85 percent and silver down 1.81
percent. Industrial metals gained with aluminum up 1.24 percent and
zinc up 0.42 percent.
The euro gained 0.41 percent against the dollar and the pound
was up 0.12 percent against the greenback. However the yen lost out
against the dollar, down 0.17 percent.
Notable earnings released on Thursday included:
Micron Technology, Inc. (NASDAQ:
) reported EPS of $0.20 on revenue of $2.80 billion, compared to
last year's loss of $0.24 per share on revenue of $1.96 billion.
Lindsay Corporation (NYSE:
) reported EPS of $0.81 on revenue of $148.40 million, compared to
last year's EPS of $0.68 on revenue of $127.82 million.
Marriot Vacations Worldwide Corporation (NYSE:
) reported EPS of $0.72, compared to last year's EPS of $0.23 on
revenue of $383.00 million. Safeway Inc. (NYSE:
) is expected to report EPS of $0.10 on revenue of $8.60 billion,
compared to last year's EPS of $0.16 on revenue of $10.05 billion.
Stocks moving in the pre-market included:
Newmont Mining Corp (NYSE:
) gained 0.46 percent in pre-market trade after falling 2.45
percent over the past week. McDonald's Corp (NYSE:
) gained 0.21 percent in pre-market trade after gaining 1.25
percent on Thursday Northrop Grumman Corporation (NYSE:
) after rising 4.32 percent over the past week, Northrop Grumman
gained 0.21 percent in pre-market trade Eli Lilly and Co (NYSE:
) lost 4.37 percent in pre-market trade after rising 2.48 percent
on Thursday Corning Inc (NYSE:
) fell 2.28 percent in pre-market trade after a week of choppy
Earnings reports expected on Friday include:
Infosys Limited (NASDAQ:
) is expected to report EPS of $0.70 on revenue of $2.00 billion,
compared to last year's loss of $0.75 per share on revenue of $1.80
billion. Webster Financial Corporation (NYSE:
) is expected to report EPS of $0.49 on revenue of $149.73 million,
compared to last year's EPS of $0.48 on revenue of $144.89
million. Wells Fargo & Company (NYSE:
) is expected to report EPS of $0.97 on revenue of $21.00 billion,
compared to last year's EPS of $0.88 on revenue of $21.21 billion.
J P Morgan Chase & Co (NYSE:
) is expected to report EPS of $1.22 on revenue of $24.06 billion,
compared to last year's EPS of $1.40 on revenue of $25.86 billion.
Economic releases on Friday will include Canadian employment
change and the unemployment rate, US PPI, Spanish CPI, German CPI
and the French current account.
Good luck with your trades and have a great weekend!
For a recap of Thursday's market action, click
Tune into Benzinga's pre-market info show with Dennis Dick and
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