After Islamist militants overtook a third military air base in
Syria this week, the U.S. began to re-examine its role in the
Middle Eastern conflict.
While the White House initially planned to intervene with
targeted airstrikes in northern Iraq, the Pentagon has said it is
planning to send surveillance aircraft to Syria to gather
intelligence. The decision indicates that the U.S. is contemplating
extending its airstrikes into Syria to keep ISIS from growing any
In other news around the markets:
In an effort to get ahead of the trend, Amazon.com (NASDAQ:
) announced on Monday that it had inked a deal to acquire Twitch
Interactive, a video game broadcasting channel. The deal, worth
$970 million, will give
a head start in the spectator aspect of video gaming, as Twitch
boasts the United States' fourth-largest internet traffic volume,
putting it among the ranks of Netflix (NASDAQ:
), Google (NASDAQ:
) and Apple (NASDAQ:
). Infighting within the French government over how to promote
growth in the struggling eurozone led to the resignation of Economy
Minister Arnaud Montebourg, Education Minister Benoit Hamon and
Culture Minister Aurelie Filippetti. Now, the nation's Prime
Minister Manuel Valls is tasked with forming a new government for
the second time in less than five months. With accusations flying
that Moscow has sent soldiers across the border into Ukraine, hopes
are dim for talks between Russian President Vladmir Putin and his
Ukrainian counterpart Petro Poroshenko to provide any progress.
Though Russia has denied the allegations, the Ukrainian military
has said it captured Russian paratroopers, as well as stopping a
convoy of 10 tanks and two armored vehicles from entering at the
nation's south eastern border. On Monday, the United Nations
condemned what it described as "appalling, widespread" war crimes
committed by the Islamic State in Iraq. The group has allegedly
carried out mass killings of its prisoners of war, most of which
were civilians. The U.N.'s statement came just days after the
Islamic State released a video of the beheading of an American
Asian markets were mostly lower as investors took profit, with
the exception of the KOSPI, which gained 0.35 percent. The NIKKEI
was down 0.59 percent, the Shanghai composite lost 0.99 percent,
the Shenzhen composite lost 1.50 percent and the Hang Seng index
fell 0.37 percent.
European markets were mixed; the FTSE gained 0.35 percent, the
STOXX 600 was up 0.01 percent and the IBEX rose 0.03 percent.
However, the Dax fell 0.38 percent, the CAC 40 fell 0.07 percent
and the MIB was down 0.40 percent.
Energy futures improved; Brent futures were up 0.06 percent and
WTI futures rose 0.27 percent. Gold and silver gained 0.84 percent
and 0.77 percent, respectively, while industrial metals declined.
Copper lost 0.53 percent, zinc was down 0.42 percent and tin lost
The euro gained modestly overnight after Draghi's comments at
the Jackson Hole summit weighed on Monday. The common currency
traded at $1.3193 and gained 0.08 percent against the pound, but
lost 0.14 percent against the yen. The dollar was also lower
against the yen, down 0.15 percent, but gained 0.02 percent against
both the pound and the franc.
Notable earnings released on Monday included:
OSI Systems (NASDAQ:
) reported fourth quarter EPS of $1.19 on revenue of $260.10
million, compared to last year's EPS of $1.02 on revenue of $227.90
million. Adept Technology (NASDAQ:
) reported a fourth quarter loss of $0.03 on revenue of $14.30
million, compared to last year's EPS of $0.00 on revenue of $13.70
Stocks moving in the Premarket included:
Exxon Mobil (NYSE:
) was up 1.26 percent in premarket trade after gaining 0.25 percent
on Monday. Gilead Sciences (NASDAQ:
) was down 0.16 percent in premarket trade after rising 6.09
percent over the past five days.
Notable earnings expected on Tuesday include:
Best Buy Co. (NYSE:
) is expected to report second quarter EPS of $0.32 on revenue of
$9.01 billion, compared to last year's EPS of $0.32 on revenue of
$9.30 billion. Bank of Nova Scotia (NYSE:
) is expected to report third quarter EPS of $1.43 on revenue of
$5.94 billion, compared to last year's EPS of $1.32 on revenue of
$5.60 billion. Bank of Montreal (NYSE:
) is expected to report third quarter EPS of $1.66 on revenue of
$4.25 billion, compared to last year's EPS of $1.68 on revenue of
$4.05 billion. Sanderson Farms (NASDAQ:
) is expected to report third quarter EPS of $3.85 on revenue of
$789.20 million, compared to last year's EPS of $2.95 on revenue of
Notable economic releases expected on Tuesday include U.S. oil
inventory data, U.S. house price data, U.S. durable goods and
British mortgage approvals.
For a recap of Monday's market action, click .
Tune into Benzinga's pre-market info show with Nic Chahine,
Aurelija Augulyte & Phillip Streible
© 2014 Benzinga.com. Benzinga does not provide investment
advice. All rights reserved.
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