Markets across the world improved after Janet Yellen was
approved as the new Federal Reserve Chairwoman on Thursday.
Yellen's appointment allowed investors to release a collective sigh
of relief as she dovishly defended the Fed's easy money
The prospect of extended US monetary stimulus kept Asian markets
climbing higher on Friday morning and helped US shares soar on
In other news around the markets:
Spain and Ireland announced on Thursday that they were ready to
stand on their own as their bailout programs are set to finish in
the near future. Although the region's finance ministers praised
the decision, it does carry risks; especially after the bloc's
recent GDP data showed that the eurozone's economic growth was far
from roust. The United Nations reported that Iran has cut down on
its nuclear activity since President Hasan Rouhani took office back
in August. With talks between the West and Iran over the nation's
nuclear capabilities set to resume next week, the report could help
aid diplomacy. The two sides will be working on a deal to prevent
Tehran from developing nuclear weapons in exchange for easing
sanctions. On Thursday, Berkshire Hathaway disclosed that it had
bought 40.1 million shares of Exxon Mobil, resulting in a $3.45
billion stake. Following news of the deal, Exxon shares rose 0.9
percent. On Friday morning, ECB Executive Board Member Joerg
Asmussen said it would be necessary for the eurozone to have
backstops in place before the ECB performs its health check
assessments. EU finance ministers will meet later on Friday to
discuss how to implement backstops before the checks begin in
Asian markets ended the week on a high note with the prospect of
US monetary stimulus continuing until March of next year. The
Japanese NIKKEI was up 1.95 percent and the South Korean KOSPI
gained 1.94 percent. China's Shanghai composite gained 1.68 percent
and the Shenzhen composite was up 1.84 percent.
European markets were mixed, the UK's FTSE gained 0.29 percent
and the eurozone's STOXX 600 was mostly flat. Italy's MIB lost 0.90
percent and the Spanish IBEX lost 0.34 percent.
Energy futures were higher with Brent futures up 1.33 percent
and WTI futures up 0.20 percent. Gold lost 0.27 percent and silver
was down 0.56 percent. Industrial metals were mixed with copper
down 0.22 percent and tin up 0.77 percent.
The euro lost 0.15 percent against the dollar and the pound was
down 0.04 percent against the greenback. The dollar gained 0.34
percent against a tumbling yen, and remained flat against the
Notable earnings released on Thursday included:
Wal-Mart Stores, Inc. (NYSE:
) reported third quarter EPS of $1.14 on revenue of $115.69
billion, compared to last year's EPS of $1.08 on revenue of $113.93
billion. Kohl's Corporation (NYSE:
) reported third quarter EPS of $0.81 on revenue of $4.44 billion,
compared to last year's EPS of $0.91 on revenue of $4.49 billion.
Nordstrom, Inc. (NYSE:
) reported third quarter EPS of $0.69 on revenue of $2.88 billion,
compared to last year's EPS of $0.71 on revenue of $2.81 billion.
Stocks moving in the Premarket included:
Exxon Mobil Corp (
) gained 1.62 percent in premarket trade after rising 0.68 percent
on Thursday. ADT Corp (NYSE:
) gained 1.45 percent in premarket trade after climbing 1.47
percent yesterday. Interpublic Group of Companies (NYSE:
) lost 0.58 percent in premarket trade after rising 3.47 percent
over the past five days. Prudential Financial Inc (NYSE:
) lost 0.47 percent in premarket trade after climbing 6.23 percent
over the past five days. Citigroup Inc. (NYSE:
) fell 0.42 percent in premarket trade after gaining 3.85 percent
over the past week.
No notable earnings to report
Friday's economic calendar will be relatively quiet; notable
releases expected include eurozone CPI, Italian trade balance, US
industrial production, US CPI, and Germany's house price index.
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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