Policymakers in Washington continued to struggle with passing a
spending bill that will keep the government going past October 1.
Unfortunately, even if the bill is passed, most see this battle as
just the tip of the iceberg as US Treasury Secretary Jack Lew has
indicated that the US will reach its borrowing capacity on October
With the possibility of a government shutdown looming, the US
dollar and stocks have softened, but US Treasuries have rallied as
investors look for security "just in case."
In other news around the markets:
Reports that the Japanese government was considering plans for
corporate tax cuts helped boost Japanese shares on Thursday. Kyodo
News wire reported that Prime Minister Shinzo Abe will soon
announce his plans to study corporate tax cuts as part of an
economic stimulus package. US Treasury yields neared the 2.6
percent mark as investors flocked to a safe haven while the Federal
spending budget hung in the balance. Treasury prices climbed for
the fourth consecutive session on Wednesday as both the debt
ceiling and the Fed's tapering plan encouraged buyers. The Bank of
England's Financial Policy Committee made its first public comments
on real estate on Wednesday saying it had its eye on the housing
market. The committee, organized to recognize crises before they
develop, will be focused on increased mortgage lending as UK house
prices rise. Many are worried that the inflating housing prices are
the beginning of a housing bubble. The recent wave of computer
glitch errors have rival NYSE Euronext and NASDAQ OMX Group
considering a partnership to cut down on trading errors. The two
are discussing a plan in which each company houses a backup feed
for the other's stock price data, so if one group's data is lost,
investors can turn to the other exchange for the information.
Asian markets were mixed on Thursday; The Japanese NIKKEI was up
1.22 percent and Indonesia's JSX composite was up by 1.29 percent.
China's Shanghai composite lost 1.94 percent and the Shenzhen
composite was down 1.61 percent.
European markets suffered on Thursday morning, the UK's FTSE was
down 0.07 percent and the eurozone's STOXX 600 was down 0.12
percent. Italy's MIB lost 0.84 percent and France's CAC 40 was down
Brent futures were down 0.19 percent and WTI futures lost 0.14
percent. Gold was up 0.12 percent but silver lost 0.12 percent.
Industrial metals were up across the board with Tin posting the
largest gains, up 1.20 percent.
The euro was back above $1.35 on Thursday and the pound to
dollar ratio remained flat. The yen lost 0.54 percent against the
dollar and the Australian dollar was up 0.25 percent against the
Notable companies that reported earnings on Wednesday
Jabil Circuit, Inc. (NYSE:
) reported fourth quarter EPS of $0.56 on revenue of $4.81 billion,
compared to last year's EPS of $0.54 on revenue of $4.34 billion.
Synnex Corporation (NYSE:
) reported third quarter EPS of $1.24 on revenue of $2.73 billion,
compared to last year's EPS of $0.93 on revenue of $2.58 billion.
Bed Bath & Beyond (NASDAQ:
) reported second quarter EPS of $1.16 on revenue of $2.82 billion,
compared to last year's EPS of $0.98 on revenue of $2.59 billion.
AutoZone, Inc (NYSE:
) reported fourth quarter EPS of $10.42 on revenue of $3.10
billion, compared to last year's EPS of $8.46 on revenue of $3.10
Stocks moving in the pre-market included:
Carnival Corp (NYSE:
) continued its fall and lost 0.36 percent in pre-market trade
McDonald's Corp (NYSE:
) gained 0.33 percent in pre-market trade after falling just over 1
percent over the past week.
Earnings Reports Expected On Thursday Include:
Accenture plc. (NYSE:
) is expected to report EPS of $1.01 on revenue of $6.09 billion,
compared to last year's EPS of $0.88 on revenue of $6.84 billion.
Nike, Inc. (NYSE:
) is expected to report EPS of $0.78 on revenue of $6.97 billion,
compared to last year's EPS of $0.64 on revenue of $6.47 billion.
Wednesday's economic calendar is a busy one with British
consumer confidence, current account and GDP data, US pending home
sales, initial and continuing jobless claims, and GDP data, the
Brazilian unemployment rate and Italian retail sales.
(c) 2013 Benzinga.com. Benzinga does not provide investment
advice. All rights reserved.
Free Trading Education -
Check out the free events taking place on Marketfy
this week. Spaces are limited. Sign up today.