Nonfarm payrolls data for September is due out on Tuesday,
almost two months late due to the US government shutdown.
The data is expected to show that US job growth increased in
September before the political squabbling halted some of the
nation's momentum. Analysts are expecting that employers added
180,000 jobs and that the unemployment rate will remain at 7.3
The report would make a good case for the Federal Reserve to
begin tapering its $85 billion per month bond buying plan, however
the recent government shutdown likely dragged on the US economy.
The bank will have to wait for October's data for a clearer picture
of the damage done by the shutdown.
In other news around the markets:
The relationship between the US and Saudi Arabia has slowly been
eroded over the past few months as disputes over Syria, Iran and
Egypt policy put the two sides at odds. On Friday, Saudi Arabia
elected not to take a seat on the UN Security Council, saying the
UN had "double standards". Over the weekend, Saudi Arabia's
intelligence chief claimed he is planning to cut back on his
cooperation with the US to arm and train Syrian rebels. On Tuesday
Australia's freshly elected conservative government announced plans
to raise the debt limit by A$500 billion. The increase was widely
expected and had a minimal impact on Australian markets. JP Morgan
is nearing a settlement with the Justice Department in which it
won't be penalized for problems from Washington Mutual or Bear
Stearns Co, both of which the bank bought during the financial
crisis. The deal will force JP Morgan to pay $13 billion and could
be finalized this week. As part of a global probe into currency
market manipulation, the Commodity Futures Trading Commission has
asked big banks to look through their records for evidence of foul
play and hand their findings over to the CFTC. Several large banks,
including Deutsche Bank, are spending millions scanning traders'
emails and chats looking for keywords and phrases that could
Asian markets were mixed on Tuesday, the Japanese NIKKEI gained
0.13 percent, but the Shanghai composite was down 0.89 percent and
the Shenzhen composite lost 1.03 percent. The Hang Seng Index was
also down 0.49 percent, but New Zealand's NZ 50 was up 0.61
Europe's markets were quiet on Tuesday, the UK's FTSE was up
0.10 percent and the eurozone's STOXX 600 lost 0.05 percent. The
Spanish IBEX was down 0.39 percent and the German DAX was down 0.09
Energy futures were mixed, Brent futures were up 0.11 percent
and WTI futures were down 0.23 percent. Gold gained 0.08 percent
and silver was down 0.46 percent. Industrial metals were mostly
higher with zinc up 0.31 percent and tin up 0.44 percent.
The dollar was steady against the euro on Tuesday morning, but
the pound gained 0.14 percent against the American currency. The
yen lost 0.07 percent against the dollar and the Australian dollar
gained 0.11 percent against the greenback.
Earnings Reported Yesterday
Notable earnings released on Monday included:
Netflix, Inc. (NASDAQ:
) reported third quarter EPS of $0.52 on revenue of $1.11 billion,
compared to last year's EPS of $0.13 on revenue of $905.09 million.
McDonald's Corporation (NYSE:
) reported third quarter EPS of $1.52 on revenue of $7.32 billion,
compared to last year's EPS of $1.43 on revenue of $7.15 billion.
Halliburton Company (NYSE:
) reported third quarter EPS of $0.83 on revenue of $7.50 billion,
compared expected EPS of $0.82 on revenue of $7.50 billion. Texas
Instruments Incorporated (NASDAQ:
) reported third quarter EPS of $0.56 on revenue of $3.24 billion,
compared to last year's EPS of $0.52 on revenue of $3.39 billion.
Stocks moving in the pre-market included:
Yahoo! Inc. (NASDAQ:
) gained 1.29 percent in premarket trade after rising 1.64 percent
on Monday First Solar Inc. (NASDAQ:
) rose 0.41 percent in premarket trade after gaining 21.46 percent
over the past week International Business Machines Inc. (NYSE:
) gained 0.39 percent in premarket trade after dropping 7.55
percent over the past five days.
Earnings reports expected on Tuesday include:
The Travelers Company Inc. (NYSE:
) is expected to report third quarter EPS of $1.69 on revenue of
$5.83 billion, compared to last year's EPS of $2.22 on revenue of
$5.70 billion. Delta Airlines Inc. (NYSE:
) is expected to report third quarter EPS of $1.36 on revenue of
$10.47 billion, compared to last year's EPS of $0.90 on revenue of
9.92 billion. United Technologies Corporation (NYSE:
) is expected to report third quarter EPS of $1.53 on revenue of
$16.18 billion, compared to last year's EPS of $1.37 on revenue of
$15.04 billion. Lockheed Martin Corporation (NYSE:
) is expected to report third quarter EPS of $2.26 on revenue of
$11.15 billion, compared to last year's EPS of $2.21 on revenue of
Delayed US nonfarm payrolls data will be the most anticipated
economic release on Tuesday. Other notable releases include
Australian CPI, US unemployment rate and Canadian retail sales.
For a recap of Monday'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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