The relationship between the U.S. and Russia became even more
tense on Monday after U.S. officials accused Russia of violating
the Intermediate Range Nuclear Forces treaty.
Although the accusations did not detail Russia's infractions,
the U.S. called for high-level talks with Moscow in hopes that the
Kremlin would return to compliance with the treaty.
reported that Executive Director of the Arms Control Association
Daryl Kimball said that Russia's decision to disregard the treaty
suggests that the nation is moving away from the its agreement with
the U.S. to refrain from using their most dangerous weapons despite
In other news around the markets:
Israeli Prime Minister Benjamin Netanyahu quashed any hopes of a
prolonged cease fire agreement when he announced on Tuesday that
his country was preparing for a long conflict in the Gaza strip.
Overnight, Israeli forces bombed Gaza City and leveled the home of
Hamas Gaza leader, but there were no casualties. Netanyahu has said
the offensive will not be complete until the cross-border tunnels
have been completely destroyed. On Monday, Darden Restaurants
announced that its Chairman and Chief Executive Clarence Otis was
leaving the company. Darden also shook up its board of directors by
giving Starboard Value LP, which controls around eight percent of
its stock, three seats. Darden will then nominate nine further
members to sit on the board and leave three more seats open for
shareholders to elect. With the U.S. recession over and the
nation's economy and job market on the rise, stores that served
America's poorest consumers are facing some setbacks. In an effort
to thrive during a difficult period, Dollar Tree has made a deal to
buy Family Dollar Stores for nearly $8.50 billion. The deal will
give the number two and three dollar-store companies the ability to
negotiate better deals with suppliers and compete with rival Dollar
General Corp. The U.S. and the EU announced that they were planning
to enact stricter sanctions against Russia that would target the
nation's finance, energy and defense sectors. The European
sanctions are expected to kick in beginning as early as Tuesday,
something that will likely create a problem for the Russian economy
as the EU is Russia's largest trading partner. However, officials
say that despite the tougher sanctions, it seems that Moscow will
refuse to give up its support for Ukrainian separatists.
Asian markets were mostly higher; the NIKKEI was up 0.57
percent, the Shanghai composite gained 0.24 percent, the KOSPI rose
0.64 percent and the Shenzhen composite rose 0.86 percent.
European markets were lower with the exception of the FTSE,
which gained 0.03 percent. The STOXX 600 was up 0.13 percent, the
DAX rose 0.20 percent, the MIB was up 0.15 percent and the CAC 40
gained 0.23 percent.
Energy futures were mixed, Brent futures gained 0.12 percent,
but WTI futures lost 0.16 percent. Gold and silver gained 0.55
percent and 0.96 percent respectively and industrial metals were
also higher. Copper rose 0.15 percent, aluminum was up 0.90
percent, zinc gained 0.68 percent and tin rose 0.78 percent.
Currency markets were quiet as investors awaited the outcome of
the two-day Fed meeting that got underway on Tuesday. The euro was
steady at $1.3435 and gained 0.02 percent against the yen, but fell
0.09 percent against the pound. The dollar gained 0.05 percent
against the yen, but lost 0.05 percent against the pound.
Notable earnings released on Monday included:
Tyson Foods (NYSE:
) reported EPS of $0.75 on revenue of $9.68 billion, compared to
last year's EPS of $0.69 on revenue of $8.73 billion. XL
) reported EPS of $1.02 on revenue of $1.83 billion, compared to
last year's EPS of $0.75 on revenue of $1.49 billion.
) reported EPS of $1.55 on revenue of $1.31 billion, compared to
last year's EPS of $1.41 on revenue of $1.22 billion.
) reported EPS of $2.43 on revenue of $4.80 billon, compared to
last year's EPS of $2.20 on revenue of $4.52 billion.
Stocks moving in the Premarket included:
Under Armour (NYSE:
) gained 1.97 percent in premarket trade after rising 18.10 percent
over the past week. EOG Resources (NYSE:
) was up 0.76 percent in premarket trade after falling 1.25 percent
on Monday. Facebook (NASDAQ:
) rose 0.41 percent in premarket trade after gaining 7.95 percent
over the past week. Mircosoft (NASDAQ:
) was down 0.39 percent in premarket trade after falling 1.19
percent on Monday.
Notable earnings releases expected on Tuesday include:
Express Scripts (NASDAQ:
) is expected to report EPS of $1.22 on revenue of $24.38 billion,
compared to last year's EPS of $1.13 on revenue of $26.42 billion.
United Parcel Service (NYSE:
) is expected to report EPS of $1.24 on revenue of $14.11 billion,
compared to last year's EPS of $1.13 on revenue of $13.51 billion.
) is expected to report EPS of $0.57 on revenue of $12.50 billion,
compared to last year's EPS of $0.56 on revenue of $12.97 billion.
) is expected to report EPS of $0.80 on revenue of $10.60 billion,
compared to last year's EPS of $0.84 on revenue of $11.01 billion.
For a recap of Monday's market action, click .
Tune into Benzinga's #PreMarket Prep today to hear Nic Chahine,
Jeffrey Hirsch & Larry Doyle by clicking
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