Dallas Federal Reserve President James Bullard said the US
central bank could begin to taper its bond buying program at its
December meeting next week after Friday's US labor data showed
Bullard's comments on Monday added to growing speculation that
the bank could cut back on its stimulus spending sooner than
expected. Bullard, who has a vote at the FOMC said earlier that the
Fed's taper would be closely tied to the US' payrolls figure, which
came in surprisingly high last week.
Although the general consensus is that the bank will hold off on
a taper until March, some analysts have begun to warm to the idea
of a taper in December or January.
Computer security firm, FireEye, has said it found evidence that
Chinese hackers were spying on communications from five European
nations ahead of September's G20 summit. The hackers were able to
get into the nations' computer networks by sending emails to the
ministries' staff containing tainted files. No evidence has been
found which links the hackers to the Chinese government. Ukranian
President Viktor Yanukovych called for talks between the
Yanukovych's government and opposition leaders on Monday in an
effort to de-escalate the growing tension. However the opposition
rejected the idea, saying it was not willing to enter into talks
until Yanukovych's government has been dismissed and police
responsible for beating student protestors have been punished.
Sysco announced that it is planning to buy US Foods for $3.5
billion. The deal will unite the two largest food distribution
companies, which together garner nearly 27 percent of the market
share. Eurozone finance ministers were hopeful that they will come
to an agreement on the details of the region's banking union on
Tuesday after talks on Monday resulted in a breakthrough on a
resolution mechanism for failing banks. The ministers discussed
setting up a system under which failing banks could be partially
financed by banks from other EU countries. In order to move forward
with this idea, the nations will have to sign a new treaty as the
bloc's current legal rules wouldn't permit such a system.
Asian markets were moderately lower on Tuesday, the Japanese
NIKKEI fell 0.25 percent and the South Korean KOSPI was down 0.35
percent. The Hang Seng index fell 0.19 percent, but China's
Shenzhen composite was up 0.11 percent.
European markets continued on a high note, the UK's FTSE was up
0.11 percent and the eurozone's STOXX 600 gained 0.29 percent. The
German DAX was also higher, up 0.25 percent.
Energy futures were higher, Brent futures gained 0.31 percent
and WTI futures were up 0.40 percent. Gold was up 0.83 percent and
silver gained 1.19 percent. Industrial metals were up across the
board with aluminum posting the largest gains, up 0.79 percent.
Currency markets were quiet on Tuesday morning, the euro was up
0.09 percent against the dollar and the pound gained 0.08 percent
against the greenback. The dollar lost 0.16 percent to the yen and
gained 0.31 percent against the Australian dollar.
Notable earnings released on Monday included:
Pep Boys- Manny, Moe & Jack (NYSE:
) reported third quarter EPS of $0.02 on revenue of $507.00
million, compared to last year's EPS of $0.12 on revenue of $509.61
million. Vail Resorts, Inc. (NYSE:
) reported a first quarter loss of $2.04 on revenue of $123.40
million, compared to last year's loss of $1.70 on revenue of
$166.35 million. ABM Industries Incorporated (NYSE:
) reported fourth quarter EPS of $0.48 on revenue of $1.24 billion,
compared to last year's EPS of $0.50 on revenue of $1.09 billion.
Stocks moving in the Premarket included:
Transocean Ltd (NYSE:
) gained 0.30 percent in premarket trade after falling 1.29 percent
over the past week Dow Chemical Co (NYSE:
) fell 4.17 percent in premarket trade after rising 3.90 percent on
Monday American Express Co. (NYSE:
) lost 0.87 percent in premarket trade after climbing 1.35 percent
over the past five days Carnival Corp (NYSE:
) fell 0.62 percent in premarket trade after gaining 0.74 percent
Notable earnings expected on Tuesday include:
Toll Brothers Inc. (NYSE:
) is expected to report fourth quarter EPS of $0.41 on revenue of
$981.62 million, compared to last year's EPS of $2.35 on revenue of
$632.83 million. H &R Block, Inc. (NYSE:
) is expected to report a third quarter loss of $0.37 per share on
revenue of $137.85 million, compared to last year's loss of $0.37
on revenue of $137.26 million. AutoZone, Inc. (NYSE:
) is expected to report third quarter EPS of $6.29 on revenue of
$2.11 billion, compared to last year's EPS of $5.41 on revenue of
Tuesday's economic calendar will be dominated with European
releases including Italian GDP, Italian industrial production,
French industrial production, and British trade balance data,
manufacturing production and industrial production.
For a recap of Monday'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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