US President Barack Obama met with his top national security
advisers on Monday to discuss how to move forward in Iraq.
Sunni insurgents have taken control of much of the north of the
nation and have been joined by several other groups that oppose
oppression by Maliki.
The UN has said that the rebel groups have committed war crimes
such as holding mass executions of people who were not involved in
the fighting over the past week.
Obama has yet to make a decision about how to respond to Iraq's
calls for aid, but he has ruled out the possibility of sending US
troops into combat. Secretary of State John Kerry said an airstrike
may be on the table, though it wouldn't be the "whole answer."
In other news around the markets:
In an effort to fend off a $53 billion takeover bid by Valeant,
Allergan released private communications from senior Morgan Stanley
bankers degrading Valeant's business practices. However, Morgan
Stanley is now working for Valeant, putting the finance firm in an
awkward position. Allergan released the emails together with
documents outlining why its shareholders should reject the
Following late night talks organized by the European Union,
Russian gas company Gazprom has cut off natural gas supplies to
Ukraine over the nation's unpaid debts. The decision could topple
Ukraine's already shaky economy and has raised concerns about
energy shortages elsewhere in Europe. For the moment, Gazprom has
said it will continue to ship its supplies through Ukraine to other
parts of the EU. Next week EU policymakers are expected to discuss
the issue at a summit in Brussels to try to resolve the dispute
before the winter.
On Monday, Apple reached a settlement in a class action suit
that accused Apple of overcharging customers by $280 million for
e-books. A filing with a New York court confirmed the agreement,
but the terms of the settlement are currently sealed and waiting
for the approval of the court.
General Motors recalled 3.36 million more cars related to the
ongoing ignition switch problem, nearly doubling the total number
affected vehicles. To date, GM has recalled about 20 million
vehicles in 44 recalls this year. That figure surpasses total
vehicle sales in the US for an entire year.
Asian markets were mixed; the NIKKEI rose 0.29 percent and the
KOSPI was up 0.40 percent, but the Shanghai composite lost 0.92
percent and the Shenzhen composite was down 0.93 percent. The Hang
Seng index lost 0.42 percent and Australia's ASX 200 fell 0.22
percent, but New Zeland's NZ50 increased by 0.28 percent.
Europe's markets were up across the board; the FTSE gained 0.19
percent, the STOXX 600 rose 0.35 percent, Germany's DAX gained 0.72
percent, Italy's MIB rose 0.58 percent and France's CAC 40 was up
Energy futures lost as investors took profits; Brent futures
lost 0.41 percent and WTI was down 0.63 percent. Gold and silver
were down 0.84 percent and 0.66 percent respectively, but
industrial metals were up across the board with the exception of
tin, which lost 0.69 percent. Zinc gained 0.74 percent, aluminum
was up 0.43 percent and copper gained 0.10 percent.
The dollar gained as the US Federal Reserve began its two day
policy meeting, up 0.17 percent against the yen, 0.12 percent
against the pound and 0.48 percent against the Australian dollar.
The euro also lost against the dollar, down 0.10 percent, but
gained 0.07 percent against the yen.
Notable earnings released on Monday included:
Korn/Ferry International (NYSE:
) reported fourth quarter EPS of $0.32 on revenue of $251.70
million, compared to last year's EPS of $0.32 on revenue of $238.68
million. Layne Christensen Company (NASDAQ:
) reported a first quarter loss of $1.41 on revenue of $191.20
million, compared to last year's loss of $0.81 on revenue of
$226.45 million. Amira Nature Foods (NYSE:
) reported fourth quarter EPS of $0.47 on revenue of $186.60
million, compared to last year's EPS of $0.24 on revenue of $140.25
Stocks moving in the Premarket included:
) was up 2.28 percent in premarket trade after losing 1.10 percent
on Monday. Delta Airlines (NYSE:
) gained 0.41 percent in premarket trade after falling 7.24 percent
over the past five days. International Business Machines (NYSE:
) rose 0.41 percent in premarket trade after falling 2.08 percent
over the past five days. Transocean LTD (NYSE:
) was down 0.34 percent in premarket trade after gaining 0.90
percent on Monday.
Notable earnings expected on Tuesday include:
Bob Evans Farms (NASDAQ:
) is expected to report fourth quarter EPS of $0.42 on revenue of
$333.31 million, compared to last year's EPS of $0.71 on revenue of
$333.91 million. Adobe Systems (NASDAQ:
) is expected to report second quarter EPS of $0.30 on revenue of
$1.03 billion, compared to last year's loss of $0.36 on revenue of
$1.01 billion. Yingli Green Energy (NYSE:
) is expected to report a first quarter loss of $0.24 on revenue of
$464.04 million, compared to last year's loss of $0.63 on revenue
of $431.39 million. La-Z-Boy (NYSE:
) is expected to report fourth quarter EPS of $0.32 on revenue of
$368.12 million, compared to last year's EPS of $0.30 on revenue of
Tuesday's economic calendar will be dominated by US releases
including oil inventory reports, building permits, housing starts
and the Redbook. Other notable releases include German ZEW economic
sentiment, British PPI, Italian trade balance and British CPI.
For a recap of Monday's market action, click .
Tune into Benzinga's #PreMarket Prep today to hear Andrew
Giovinazzi, Serge Berger and David Peltier by clicking
© 2014 Benzinga.com. Benzinga does not provide investment
advice. All rights reserved.
Free Trading Education -
Check out the free events taking place on Marketfy
this week. Spaces are limited. Sign up today.