The US government's 11th hour deal on Thursday helped more than
80 percent of S&P 500 stocks rise in value on Thursday.
The index broke its intraday trading record and closed at an all
time high. Technology was the only sector to falter with IBM's
weaker than expected revenue taking the company's shares down 6.4
The dollar slipped to an eight month low early on Friday as most
saw the US budget deal as a temporary fix that merely postponed
another battle between Democrats and Republicans in Washington.
The American currency was also weighed down by speculation that
the US Federal Reserve will stay well away from tapering its bond
buying program in the coming months due to the shutdown's effects
on the nation's economy as well as the possibility of round two of
the budget showdown in early 2014.
In other news around the markets:
On Friday, Bank of Japan Governor Haruhiko Kuroda said that the
effects of the Japanese central bank's stimulus programs are
spreading through the economy and are evident in the country's
improving economic activity and prices. Kuroda said the bank will
continue with its easing until a price stability target of two
percent is achieved. China's GDP grew 7.8 percent in the third
quarter, its fastest pace in 2013. However, many are questioning
whether or not the nation can sustain that level of growth.
Analysts see the People's Bank of China shifting its stance from
expansionary to neutral in the fourth quarter. The UK is
encouraging Chinese companies to invest and potentially take
majority stakes in nuclear-power programs. On Thursday, the British
government said Chinese companies like China National Nuclear Corp
could initially take minority positions nuclear projects, but over
time garner a majority stake. Ebay Inc's founder, Pierre Omidyar,
is planning to create a new media organization which he hopes will
'convert mainstream readers into engaged citizens'. Omidyar is
looking to recruit journalists who used Edward Snowden's leaked
documents to expose the US' surveillance program for his new
Asian markets were mostly higher on Friday. China's Shanghai
composite was up 0.24 percent and the Shenzhen composite gained
0.53 percent. The Hang Seng index was up 1.06 percent but the
Japanese NIKKEI lost 0.17 percent.
European markets were up across the board heading into the
weekend; the UK's FTSE was up 0.22 percent and the eurozone STOXX
600 gained 0.26 percent. The Spanish IBEX was up 0.44 percent and
France's CAC 40 rose 0.27 percent.
Energy futures were quiet with Brent futures for November
delivery up 0.06 percent and WTI futures were up 0.07 percent. Gold
lost 0.26 percent and silver fell 0.10 percent. Industrial metals
were mixed with copper up 0.64 percent and tin down 1.17
Currency markets were quiet on Friday, the euro traded steadily
at $1.36 and the yen to dollar ratio was flat at ¥97.90. The
British pound gained 0.10 percent against the American currency and
the Australian dollar was up 0.13 percent against the
Notable earnings released on Thursday included:
Google Inc. (NASDAQ:
) reported third quarter EPS of $10.74 on revenue of $11.90
billion, compared to last year's EPS of $9.03 per share on revenue
of $11.33 billion. Goldman Sachs Group (NYSE:
) reported third quarter EPS of $2.88 on revenue of $6.72
billion, compared to last year's EPS of $2.85 on revenue of $8.35
billion. Verizon Communications Inc. (NYSE:
) reported third quarter EPS of $0.77 on revenue of $30.28 billion,
compared to last year's EPS of $0.64 on revenue of $29.01 billion.
UnitedHealth Group Inc. (NYSE:
) reported third quarter EPS of $1.53 on revenue of $30.62 billion,
compared to last year's EPS of $1.50 on revenue of $27.30 billion.
Intuitive Surgical, Inc. (NASDAQ:
) reported third quarter EPS of $3.99 on revenue of $499.00
million, compared to last year's EPS of $3.54 on revenue of $525.61
Stocks moving in the pre-market included:
JC Penney Company Inc (NYSE: JCP gained 0.41 percent in pre-market
trade following an 8.13 percent loss over the last five days.
AT&T Inc. (NYSE:
) gained 0.17 percent in pre-market trade after gaining 0.70
percent over the past week. UnitedHealth Group Inc (NYSE:
) lost 0.42 percent in pre-market trade after falling 5.08 percent
Earnings reports expected on Friday include:
Morgan Stanley (NYSE:
) is expected to report third quarter EPS of $0.46 on revenue of
$7.76 billion, compared to last year's loss of $0.55 per share on
revenue of $5.29 billion. General Electric Company (NYSE:
) is expected to report third quarter EPS of $0.36 on revenue of
$35.90 billion, compared to last year's EPS of $0.36 on revenue of
$36.35 billion. Ingersoll-Rand plc (NYSE:
) is expected to report EPS of $1.10 on revenue of $3.73 billion,
compared to last year's EPS of $1.07 on revenue of $3.59 billion.
Schlumberger N.V. (NYSE:
) is expected to report third quarter EPS of $1.24 on revenue of
$11.59 billion, compared to last year's EPS of $1.08 on revenue of
$10.61 billion. Honeywell International (NYSE:
) is expected to report EPS of $1.24 on revenue of $9.92 billion,
compared to last year's EPS of $1.20 on revenue of $9.34 billion.
Friday will be another quiet day for economic releases.
Investors will be watching for Canadian CPI, the Mexican
unemployment rate, and US leading indicators.
Happy trading and good luck!
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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