World leaders and Iranian officials came to an agreement over
the weekend regarding Iran's nuclear program.
The deal will relieve Iran from some of the sanctions that
have put pressure on its economy in exchange for the nation's
willingness to curb its nuclear development. Although the deal is
only a temporary fix, set to last just six months, many are
heralding it as a massive step towards a lasting treaty in a
decade long standoff between the two sides. Oil prices tumbled
following the news even though the deal will not ease sanctions
on Iranian oil just yet.
In other news around the markets:
Prominent fund managers expressed their worries at the Reuters
2014 Global Investment Outlook Summit, saying that the market's
recent record setting highs are likely to crumble. Investors are
concerned that the Fed's stimulus taper in 2014 could bring
equities down from their 2013 highs. Carl Icahn has said earnings
in 2013 have largely been a product of easy money rather than
actual profitability, and the Fed's taper will likely readjust
Chrysler Group LLC is working to complete an IPO by
mid-December and could set a price range as early as this week.
The company's two owners are trying to strike a deal that will
allow majority owner, Fiat, to take full control before the IPO
Over the weekend, ECB executive board member Benoit Coeure
said that Europe's central bank was planning to keep rates low
for the foreseeable future and that the bank is prepared to ease
further if inflation data continues to decline. Inflation in the
17 nation bloc has fallen to 0.7 percent, well below the bank's 2
percent target, and caused many to worry that the region could
slip into a period of deflation.
Apple paid about $350 million to acquire PrimeSense, an
Israeli start-up that specializes in motion sensitive technology.
The purchase indicates that the company is moving toward new,
more interactive, features for it's devices.
Asian markets were mixed to begin the week, the Japanese
NIKKEI was up 1.54 percent but China's Shanghai composite was
down 0.47 percent. The South Korean KOSPI was up 0.49 percent and
Australia's ASX 200 was up 0.32 percent.
Europe's markets were quiet on Monday, the UK's FTSE was down
0.11 percent and the eurozone's STOXX 600 was flat. Italy's MIB
lost 0.10 percent, and the German DAX was unchanged.
Energy futures were under pressure with the new Iran deal,
Brent futures were down 2.45 percent and WTI futures lost 1.61
percent. Gold lost 1.03 percent and silver slid 1.11 percent.
Industrial metals were mixed with copper down 0.25 percent and
Zinc up 1.06 percent.
The euro was steady at $1.35 and the pound fell 0.05 percent
against the greenback. The dollar gained 0.49 percent against the
yen and 0.45 percent against the Australian dollar.
No notable earnings were released on Friday.
Stocks moving in the Premarket included:
Alcoa Inc (NYSE:
) gained 2.27 percent in premarket trade after rising 2.33
percent last week.
Delta Airlines Inc. (NYSE:
) rose 1.64 percent in premarket trade after increasing 2.00
percent on Friday
Omnicom Group Inc (NYSE:
) gained 1.20 percent in premarket trade after rising 2.56
percent last week.
Carnival Corp (NYSE:
) rose 1.19 percent in premarket trade after gaining 0.67 percent
Newmont Mining Corp (NYSE:
) fell 0.70 percent in premarket trade after falling 7.38 percent
over the past five days
Notable earnings expected on Monday include:
Nuance Communications (NASDAQ:
) is expected to report fourth quarter EPS of $0.29 on revenue of
$489.56 million, compared to last year's EPS of $0.51 on revenue
of $490.09 million.
Qihoo 360 Technology Co. Ltd. (NYSE:
) is expected to report third quarter EPS of $0.37 on revenue of
$181.51 million, compared to last year's EPS of $0.20 on revenue
of $84.04 million.
Monday's economic calendar will be relatively quiet. Notable
releases expected include US pending home sales, the Italian
trade balance and the French business survey.
For a recap of Friday'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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