The dollar gained momentum after positive US data on Thursday
stoked speculation that the US Federal Reserve may consider
tapering its stimulus spending sooner than expected.
Business activity in the Midwest rose more than forecast, and
new jobless claims declined. Moving forward, investors will be
closely watching the release of the US ISM survey of manufacturing
on Friday for fresh clues about the Fed's course of action.
In other news around the markets:
China's manufacturing sector picked up the pace in October, proving
that the nation's economic recovery was continuing. However,
discrepancies over new export orders between the nation's official
PMI and HSBC/Markit final PMI suggested that the recovery would
continue to be gradual. The Organization for the Prohibition of
Chemical Weapons reported that Syria had met the deadline for its
disarmament program by destroying all of its chemical weapons.
Although the organization was unable to visit two of Syria's
chemical weapons sites due to safety concerns, the chemical weapons
at those sites had been moved to different sites that inspectors
did visit. Europe's fragile recovery is being threatened by
dangerously low inflation rates. October's annual inflation rate
slipped to 0.7 from 1.1 percent in September. The data has many
speculating that the European Central Bank will ease further at its
policy meeting next week. Tension between the US and Germany
escalated after German officials deemed the US Treasury's critique
of the German economy as "incomprehensible". The US report accused
Germany of consuming too little and running significant surpluses,
which the report said, weighed on the global economy.
Asian markets were mixed on Friday, the Japanese NIKKEI was down
0.88 percent but the Shanghai composite gained 0.37 percent. The
Hang Seng index was up 0.19 percent and Indonesia's JSX composite
fell 1.34 percent.
European markets were also mixed on Friday morning, the UK's
FTSE was down 0.68 percent and the Eurozone's STOXX 600 was flat.
Italy's MIB gained 0.96 percent and the German DAX was
Energy futures were up on Friday, Brent futures gained 0.40
percent and WTI futures were up 0.10 percent. Gold was up 0.14
percent and silver gained 0.33 percent. Industrial metals were
lower with aluminum posting the largest loss, down 1.80
The dollar gained on strong US data as investors speculated
about a sooner than expected Fed taper. The dollar was up 0.18
percent against the euro and 0.07 percent against the pound. The
yen and the Australian dollar both gained 0.32 percent against the
Notable earnings released on Thursday included:
) reported third quarter EPS of $1.47, compared to last year's EPS
of $1.44 per share on revenue of $15.09 billion. Mastercard
) reported EPS of $7.27 on revenue of $2.20 billion, compared to
last year's EPS of $6.17 on revenue of $1.92 billion. Exxon Mobil
) reported third quarter EPS of $1.79, compared to last year's EPS
of $2.09 on revenue of $115.71 billion. American International
Group, Inc. (NYSE:
) reported third quarter EPS of $0.96, compared to last year's EPS
of $1.00 on revenue of $8.75 billion.
Stocks moving in the Premarket included:
Visa Inc. (NYSE:
) gained 0.67 percent in premarket trade after losing 3.51 percent
on Thursday. Oracle Corp (NYSE:
) gained 0.24 percent in premarket trade after rising 1.30 percent
over the past five days. Procter & Gamble Co (NYSE:
) lost 0.36 percent in premarket trade after losing 0.94 percent on
both Wednesday and Thursday.
Earnings reports expected on Friday include:
Chevron Corporation (NYSE:
) is expected to report third quarter EPS of $3.11 on revenue of
$63.39 billion, compared to last year's EPS of $2.57 per share on
revenue of $58.04 billion. WellCare Health Plans, Inc. (NYSE:
) is expected to report EPS of $1.50 on revenue of $2.38 billion,
compared to last year's EPS of $1.05 on revenue of $1.82 billion.
CBOE Holdings, Inc. (NASDAQ:
) is expected to report third quarter EPS of $0.47 on revenue of
$140.35 million, compared to last year's EPS of $0.43 on revenue of
Friday's economic releases will be dominated by PMI data with
Canadian, British, US, and Swiss manufacturing data all due out.
Other notable releases will include US construction spending, the
US ISM survey and the Brazilian trade balance.
For a recap of Thursday'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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