Optimism seemingly returned to the markets despite recent losses
due to Fed taper speculation.
US stocks rose on Monday after posting massive losses last week.
Manufacturing output in the US increased for the fourth consecutive
month, providing a solid economic backdrop for US markets.
The Federal Reserve is set to begin its two day policy meeting
on Tuesday while markets scrutinize data for clues about the bank's
taper timeline. Most analysts still expect the bank to hold off on
a taper at this month's meeting, however some have begun to think
that the Fed may hint at a January taper.
In other news around the markets:
Nasdaq OMX Group Inc's motion to dismiss the lawsuits filed by
investors who claim the exchange mismanaged Facebook's IPO were
denied on Monday. Nasdaq will still have to answer for what
investors say are poorly designed and inadequately tested systems,
which many say caused them to lose money. Boeing announced a $10
billion buyback set to begin in 2014. The company's board also
raised the stock's dividend by nearly 50 percent. Boeing's Chief
Executive Jim McNerney said the decision reflects the company's
current strength as well as anticipation of a bright future. On
Monday, Russia announced that it has been in talks with Ukraine
about the possibility of a bailout loan and cheaper natural gas
which would keep the nation's economy from collapsing. Ukrainian
President Viktor Yanukovych and Russian President Vladimir Putin
are set to meet on Tuesday, where many expect the two to cut
several deals despite the ongoing protests in Ukraine. The Reserve
Bank of Australia's December meeting minutes were released with few
surprises. The bank expects to see mining investment decline
further over the next few years and has not shut the door on the
possibility of further easing. RBA members stressed that the
Australian dollar has been hat uncomfortably high levels recently,
and that the currency will need to drop in order to ensure balanced
Asian markets were mixed on Tuesday, the Japanese NIKKEI rose
0.83 percent, but China's Shanghai composite fell 0.45 percent. The
Shenzhen composite was also lower, down 0.70 percent, but the South
Korean KOSPI gained 0.23 percent.
Europe's markets were up across the board, the UK's FTSE gained
1.28 percent and the eurozone's STOXX 600 was up 1.95 percent. The
Spanish IBEX rose 1.69 percent and France's CAC 40 gained 1.48
Energy futures were lower, Brent futures were down 0.13 percent
and WTI futures lost 0.18 percent. Gold gained 0.10 percent, but
silver lost 0.05 percent. Industrial metals were mixed with zinc up
0.71 percent and aluminum down 0.31 percent.
Currency markets were quiet, the euro and the pound both gained
0.15 percent on the dollar. The greenback lost 0.04 percent against
the yen and gained 0.09 percent against the Australian dollar.
No notable earnings released on Monday
Stocks moving in the Premarket included:
General Electric Co (NYSE:
) gained 0.22 percent after gaining 0.52 percent on Monday.
Citigroup Inc. (NYSE:
) lost 0.37 percent in premarket trade after falling 2.32 percent
over the past week. Perrigo Co (NYSE:
) fell 0.23 percent in premarket trade after losing 2.25 percent
over the past five days Carnival Corp (NYSE:
) lost 0.11 percent in premarket trade after climbing 1.33 percent
Notable earnings reports expected on Tuesday include:
Jabil Circuit, Inc. (NYSE:
) is expected to report first quarter EPS of $0.55 on revenue of
$4.49 billion, compared to last year's EPS of $0.61 on revenue of
$4.64 billion. Verifone Systems, Inc. (NYSE:
) is expected to report fourth quarter EPS of $0.26 on revenue of
$421.36 million, compared to last year's EPS of $0.76 on revenue of
Tuesday's economic calendar will be dominated by US data, which
will be scrutinized for clues about the Fed's taper plans. Notable
releases include US API crude stockpile data, US CPI, eurozone CPI,
Germany's ZEW economic sentiment survey, and Canadian manufacturing
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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