Several US reporting agencies were unable to release data last
week due to the US government shutdown.
Now, as the reopened government catches up a spate of data is
expected to hit the markets this week. The most anticipated figures
are nonfarm payrolls, which are due out on Tuesday.
Most see US employers adding 180,000 workers in September with
no change in the 7.3 percent unemployment rate. If the report
confirms speculation, it could provide a strong case for the US
Federal Reserve to begin its taper. In general, the bank is
expected to maintain its easy monetary policy well into 2014 in the
wake of the government shutdown.
However, if the flood of delayed US data paints a favorable
picture, investors could start to hedge their bets on a sooner than
In other news around the markets:
Japan's Fukushima Daiichi nuclear power plant is facing more
scrutiny after a large rainfall on Sunday left the plant with too
much water and not enough time to pump it out. The plant was unable
to pump the rainwater into empty tanks and as a result highly
radioactive water overflowed the plant's barriers. Google and
Morgan Stanley shone on Friday after their better than expected
earnings reports helped the S&P 500 climb to a record high.
Google's shares rose 13.8 percent to surpass the $1,000 mark for
the first time. The momentum in the technology sector is set to
continue on Monday as Netflix earnings are expected to follow suit.
The Bank of Japan's Governor Haruhiko Kuroda spoke on Monday
morning and reassured investors that the Bank's easing was going as
planned. He said that the Japanese financial system is running
smoothly and that the bank is planning to continue easing until the
country's inflation rate is stable at 2 percent. Nokia is set to
reveal six new products on Tuesday, its first big event since
Nokia's handset division was acquired by Microsoft a month earlier.
The unveiling of the new products could be a ray of hope for
Microsoft as it tries to gain market share in the smartphone and
tablet space where Apple and Samsung dominate.
Asian markets were mostly higher to begin the week; the Japanese
NIKKEI was up 0.69 percent, China's Shanghai composite gained 1.22
percent and the Shenzhen composite was up 1.87 percent. Hong Kong's
Hang Seng Index was up 0.53 percent, but the South Korean KOSPI
lost 0.14 percent.
European markets were quiet, the eurozone's STOXX 600 was flat
and the UK's FTSE was up 0.71 percent. Italy's MIB also gained, up
Energy futures were quiet on Monday morning, Brent futures were
down 0.05 percent and WTI futures lost 0.03 percent. Precious
metals were higher with gold up 0.23 percent and silver up 0.81
percent. Industrial metals were mixed with copper down 0.17 percent
and Zinc up 0.29 percent.
The dollar remained under pressure on Monday as most were
expecting the Federal Reserve to delay its taper. The euro traded
at $1.36 and the pound gained 0.04 percent against the dollar. The
yen lost 0.32 percent to the American currency.
Notable earnings released on Friday included:
Morgan Stanley (NYSE:
) reported third quarter EPS of $0.50 on revenue of $8.10 billion,
compared to last year's loss of $0.55 per share on revenue of $5.29
billion. General Electric Company (NYSE:
) reported third quarter EPS of $0.36 on revenue of $35.7 3
billion, compared to last year's EPS of $0.36 on revenue of $36.35
billion. Ingersol-Rand (NYSE:
) reported EPS of $0.57 on revenue of $3.75 billion, compared to
last year's EPS of $1.07 on revenue of $3.59 billion. Schlumberger
) reported third quarter EPS of $1.29 on revenue of $11.61 billion,
compared to last year's EPS of $1.08 on revenue of $10.61 billion.
Honeywell International (NYSE:
) reported EPS of $1.24 on revenue of $9.65 billion, compared to
last year's EPS of $1.20 on revenue of $9.34 billion.
Stocks moving in the pre-market included:
Teradata Corp (NYSE:
) gained 2.93 percent in premarket trade after slipping 19.47 over
the past week. Salesforce.com Inc (NYSE:
) was up 2.59 percent in premarket trade after climbing 5.93
percent over the past week. AT&T Inc (NYSE:
) rose 2.57 percent in premarket trade after gaining 0.49 percent
on Friday. Cliffs Natural Resources (NYSE:
) gained 2.09 percent in premarket trade after rising 7.42 percent
over the past five days.
Earnings reports expected on Monday include:
Netflix, Inc. (NASDAQ:
) is expected to report third quarter EPS of $0.48 on revenue of
$1.10 billion, compared to last year's EPS of $0.13 on revenue of
$905.09 million. Discover Financial Services (NYSE:
) is expected to report third quarter EPS of $1.19 on revenue of
$2.07 billion, compared to last year's EPS of $1.21. W.R. Berkley
) is expected to report third quarter EPS of $0.71 on revenue of
$1.57 billion, compared to last year's EPS of $0.61 on revenue of
$1.42 billion. Gannett Co., Inc. (NYSE:
) is expected to report third quarter EPS of $0.44 on revenue of
$1.27 billion, compared to last year's EPS of $0.56 on revenue of
On Monday's economic calendar, investors are expecting Chinese
house prices, US existing home sales, Hong Kong's CPI, Italian
industrial sales and German PPI.
Happy trading and good luck!
For a recap of Friday'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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