While Western nations try to agree on broader sanctions against
Russia following the shooting down of a passenger plane in Ukraine,
pro-Moscow separatists have agreed to hand over the plane's
recording device as well as the remains of the nearly 300
Russia has been accused of backing the separatists by providing
artillery and training, something Western leaders say makes Moscow
responsible for the Malaysian Airlines incident.
Preliminary investigations show that the shooting was a mistake,
but the incident has ignited further tension between Russia and the
West, and stricter sanctions are expected.
In other news around the markets:
The conflict in Iraq continued on Monday after a government
airstrike north of Baghdad left 10 people, reportedly all
civilians, dead. The attack was part of the Iraqi government's
attempts to regain control of northern Iraq, but rebel groups had
created their base in the center of a civilian town. On Monday,
Netflix released better than expected second-quarter earnings due
in large part to the company's 1.7 million new subscribers. The
movie and TV subscription service provider cautioned that its third
quarter profits could take a hit, as the company is planning a
massive international expansion into six European countries
beginning in September. In an effort to keep shareholders happy,
Allergan is planning a series of layoffs that will cut about 13
percent of the drug maker's workforce. The company is working to
fend off a takeover from Valeant Pharmaceuticals and has said the
spending cuts are necessary in order to help Allergan move forward
on its own. With the death toll in Gaza up to a staggering 571 as
of Monday, the U.S. has begun to push for an immediate ceasefire.
Secretary of State John Kerry is on his way to Cairo, where he will
begin talks and hopefully come to an agreement with both sides to
end the fighting. Israeli troops are working to destroy
cross-border tunnels, but the fighting is increasingly affecting
civilians with reports that about 150 of those killed were
Asian markets were mostly higher; the NIKKEI gained 0.84
percent, the Shanghai composite was up 1.02 percent, the Shenzhen
composite rose 1.31 percent, the Hang Seng index gained 1.69
percent and the KOSPI was up 0.52 percent.
European markets started the day on a high note with the
region's indexes up across the board. The FTSE rose 0.82 percent,
the STOXX 600 was up 0.89 percent, the DAX gained 0.80 percent and
the CAC 40 was up 0.86 percent.
Energy futures were higher; Brent futures gained 0.34 percent
and WTI futures were up 0.51 percent. Gold and silver were down
0.43 percent and 0.37 percent respectively, while industrial metals
rose across the board. Copper was up 0.42 percent, aluminum gained
1.97 percent and zinc was up 1.83 percent.
The euro was lower against the dollar, trading at $1.3481. The
common currency also fell 0.15 percent against the yen and 0.23
percent against the pound. The dollar gained 0.14 percent against
the yen and 0.36 percent against the franc, but lost 0.06 percent
against the pound and 0.21 percent against the Australian
Notable earnings released on Monday included:
) reported second quarter EPS of $1.15 on revenue of $1.34 billion,
compared to last year's EPS of $0.49 on revenue of $1.07 billion.
Halliburton Company (NYSE:
) reported second quarter EPS of $0.91 on revenue of $8.05 billion,
compared to last year's EPS of $0.73 on revenue of $7.32 billion.
BB&T Corporation (NYSE:
) reported second quarter EPS of $0.58 on revenue of $2.30 billion,
compared to last year's EPS of $0.77 on revenue of $2.50 billion.
SunTrust Banks (NYSE:
) reported second quarter EPS of $0.81 on revenue of $2.20 billion,
compared to last year's EPS of $0.68 on revenue of $2.10 billion.
Stocks moving in the PreMarket included:
) was up 0.88 percent in premarket trade after losing 2.60 percent
over the past week. Perrigo Company (NYSE:
) rose 0.71 percent in premarket trade after falling 2.40 percent
on Monday. Amazon.com (NASDAQ:
) was down 1.21 percent in premarket trade after gaining 1.25
percent over the past five days. AbbVie (NYSE:
) fell 0.93 percent in premarket trade after losing 1.66 percent on
Notable earnings releases expected on Tuesday include:
) is expected to report second quarter EPS of $1.44 on revenue of
$7.28 billion, compared to last year's EPS of $1.38 on revenue of
$7.08 billion. Microsoft (NASDAQ:
) is expected to report fourth quarter EPS of $0.61 on revenue of
$23.11 billion, compared to last year's EPS of $0.66 on revenue of
$19.93 billion. Coca-Cola Company (NYSE:
) is expected to report second quarter EPS of $0.63 on revenue of
$12.82 billion, compared to last year's EPS of $0.63 on revenue of
$12.75 billion. Verizon Communications (NYSE:
) is expected to report second quarter EPS of $0.91 on revenue of
$31.05 billion, compared to last year's EPS of $0.73 on revenue of
Tuesday's economic calendar will be dominated by U.S. data
including U.S. CPI, chain store sales, existing home sales and the
For a recap of Monday's market action, click .
Tune into Benzinga's #PreMarket Prep today to hear Nic Chahine,
Dave Landry, Michael Hewson & Eric Marshall by clicking
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advice. All rights reserved.
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