Worries over Portuguese Lender Banco Espirito Santo dragged
markets down on Thursday after the bank delayed payments on some of
its short-term debt securities.
The news took Portugal's stock market down 4.2 percent and
dragged the rest of the world's markets down with it. Asian trading
on Friday began with markets lower, suggesting that worries about
another financial crisis in Europe are taking hold.
The issue with Banco Espirito is reminiscent of the banking
troubles that the eurozone has been trying to remedy over the past
This problem has undone much of the region's forward progress in
regaining investors' trust in the eurozone's financial systems.
In other news around the markets:
Retailers like Family Dollar Stores (NYSE:
) and The Container Store (NYSE:
) have reported that decreasing store traffic has had a real impact
on growth this year as shoppers are more selective about their
visits to shopping centers, reducing the amount of impulse buys.
Many worry that it was more than just poor weather keeping shoppers
from spending in the first quarter, and that it could take some
time for the US' economic gains to translate into more consumer
spending. The Federal Trade Commission has filed a law suit against
), saying the company's app store allows children to make purchases
without the consent of their parents. Amazon didn't require
informed consent for in-app purchases until June, leaving many
parents with a huge bill when their children made unsuspecting
purchases. The FTC is looking for Amazon to refund affected
families as well as reworking their system to require parental
consent to make a purchase. On Friday, Imperial Tobacco announced
that it was looking to acquire parts of Reynolds (NYSE:
) and Lorillard (NYSE:
), both of which are in talks to complete a merger. If Imperial is
able to buy assets from the two cigarette makers, it could help the
company gain market share in the tobacco market, which is dominated
by Altria Group (NYSE:
). Tension between the US and Germany continued to worsen on
Thursday after German Chancellor Angela Merkel ordered Berlin's
chief of the CIA station to leave the country. Speaking in Berlin,
Merkel expressed her disappointment in the US and said that it was
a waste of effort and resources to spy in friends.
Asian markets were mostly lower with the exception of the
Shanghai composite and the Shenzhen composite, which gained 0.42
percent and 0.78 percent respectively. The NIKKEI was down 0.34
percent. The KOSPI lost 0.17 percent and the Hang Seng index was
down 0.13 percent.
Europe's markets recovered modestly on Friday after a scare with
one of Portugal's largest lenders took European markets lower. The
FTSE was up 0.34 percent, the STOXX 600 gained 0.43 percent, the
MIB was up 0.88 percent and the DAX and the CAC 40 were both up
Energy futures were poised to end the week on a loss; Brent
futures and WTI futures were both down 0.35 percent. Gold and
silver lost 0.20 percent and 0.13 percent respectively, while
industrial metals were lower across the board. Copper lost 0.03
percent, aluminum was down 0.72 percent, zinc fell 0.44 percent and
tin was down 1.03 percent.
Currency markets were quiet; the euro was steady at $1.3607 and
lost 0.03 percent against the pound. The dollar gained 0.01 percent
against the yen and 0.04 percent against the pound, but lost 0.11
percent against the Canadian dollar.
Notable earnings released on Thursday included:
Progressive Corporation (NYSE:
) reported second quarter EPS of $0.49 on revenue of $4.63 billion,
compared to last year's EPS of $0.39 on revenue of $4.39 billion.
) reported third quarter EPS of $0.70 on revenue of $615.00
million, compared to last year's EPS of $0.61 on revenue of $571.72
million. Family Dollar Stores (NYSE:
) reported third quarter EPS of $0.85, compared to last year's EPS
of $1.05 on revenue of $2.57 billion.
Stocks moving in the Premarket included:
) gained 4.61 percent in premarket trade after losing 2.05 percent
over the past week. Transocean Ltd (NYSE:
) was down 0.32 percent in premarket trade after falling 1.30
percent on Thursday. Verizon Communications (NYSE:
) fell 0.26 percent in premarket trade after rising 1.51 on
Thursday. Bank of America (NYSE:
) was down 0.13 percent in premarket trade after falling 3.68
percent over the past week.
Notable earnings releases expected on Friday include:
Wells Fargo & Company (NYSE:
) is expected to report second quarter EPS of $1.00 on revenue of
$20.80 billion, compared to last year's EPS of $0.98 on revenue of
$21.38 billion. Fastenal Company (NASDAQ:
) is expected to report second quarter EPS of $0.44 on revenue of
$952.95 million, compared to last year's EPS of $0.41 on revenue of
$847.60 million. Infosys Limited (NASDAQ:
) is expected to report first quarter EPS of $0.76 on revenue of
$2.13 billion, compared to last year's EPS of $0.73 on revenue of
Friday will be another slow day for economic releases with
investors looking forward to the US Federal budget balance, Spanish
CPI and German CPI.
For a recap of Thursday's market action, click .
Tune into Benzinga's #PreMarket Prep today to hear Chris Whalen,
Cate Long & Justin Pulitzer by clicking
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