US Secretary of State John Kerry traveled to Baghdad on Monday
to pledge the US' "intense" and "sustained" support in Iraq's
ongoing crisis. However, the promise of support came with one
condition; that the Iraqi government take the necessary steps to
reunite the nation.
The White House answered calls from Iraqi leaders for an air
strike by offering 300 military advisers and asking the nation's
government to address the underlying issues by reorganizing the
government and including the voice of minority parties.
In his discussions with Nouri al-Maliki, Kerry said the Iraqi
Prime Minister had committed to create a new government that would
include minority parties like Sunnis and Kurds beginning on July 1.
Still, many believe that the conflict can't be resolved until
Maliki steps down.
In other news around the markets:
The Wall Street Journal
founder Dennis Wilson is working with Goldman Sachs to find a way
to reorganize the company's board of directors. After a very public
disagreement with the board last week, Wilson could be considering
teaming up with a private equity firm for a buyout or a proxy
fight. Last week,
offered to pay
shareholders $72.00 as well as 0.83 Valeant share per Allergan
share. On Monday, Allergan responded by saying the tender offer was
"grossly inadequate" as it undervalues the company and would be a
risky move for shareholders. Valeant's offer will expire on August
15, with the possibility of being extended. The investigation into
insider trading allegations against activist investor Carl Icahn,
pro golfer Phil Mickelson and Sports bettor William Walters
continued as Federal authorities subpoenaed both
Dean Foods Co
. and . It isn't clear what type of information investigators have
requested from the two companies, but all three of the accused men
claim they had no involvement and no charges have been filed to
date. After founder Dov Charney was ousted from the company's
leadership by the board of directors last week, he began to look
for a way to maintain his post as CEO. Charney filed a petition for
arbitration on Monday, saying that some shareholders may be open to
making changes to the board.
Asian markets were mostly higher; the NIKKEI rose 0.05 percent,
the Shanghai composite was up 0.47 percent, the Shenzhen composite
gained 0.65 percent, the Hang Seng index rose 0.33 percent and the
KOSPI was up 0.98 percent.
Europe's markets continued to struggle on Tuesday; the STOXX 600
and the FTSE both fell 0.12 percent, the DAX lost 0.04 percent, the
MIB was down 0.32 percent and the IBEX fell 0.10 percent.
Energy futures eased as geopolitical tension around the globe
lessened. Brent futures were down 0.31 percent and WTI futures lost
0.54 percent. Gold was down 0.09 percent, but silver gained 0.05
percent. Industrial metals were also mixed with copper and tin down
0.06 percent and 0.11 percent respectively, but aluminum up 0.21
percent and zinc up 0.32 percent.
The euro made a modest comeback on Tuesday morning, gaining 0.12
percent against the dollar, 0.21 percent against the pound and 0.09
percent against the yen. The dollar was up 0.09 percent against the
pound, but lost 0.15 percent against the franc and 0.04 percent
against the yen.
Notable earnings released on Monday included:
Micron Technology (NASDAQ:
) reported third quarter EPS of $0.79 on revenue of $3.98 billion,
compared to last year's EPS of $0.04 on revenue of $2.32 billion.
Sonic Corp. (NASDAQ:
) reported third quarter EPS of $0.30 on revenue of $152.20
million, compared to last year's EPS of $0.26 on revenue of $146.63
Stocks moving in the Premarket included:
Berkshire Hathaway (NYSE:
) gained 2.35 percent in premarket trade after rising 0.41 percent
over the past five days. Bed Bath & Beyond (NASDAQ:
) was down 0.85 percent in premarket trade after climbing 1.51
percent on Monday. Staples (NASDAQ:
) fell 0.71 percent in premarket trade after gaining 1.63 percent
over the past week. Carnival Corp (NYSE:
) was down 0.41 percent in premarket trade after a steady 2.58
percent climb over the past five days.
Notable earnings expected on Tuesday include:
Carnival Corporation (NYSE:
) is expected to report second quarter EPS of $0.02 on revenue of
$3.61 billion, compared to last year's EPS of $0.09 on revenue of
$3.48 billion. Walgreen Co. (NYSE:
) is expected to report third quarter EPS of $0.94 on revenue of
$19.30 billion, compared to last year's EPS of $0.85 on revenue of
Tuesday's economic calendar will be dominated by US data, with
new home sales data being a star. After better than expected
existing home sales data out on Monday, many are looking for
today's report to confirm that the US housing market is getting
back on solid ground. Other notable releases include US consumer
confidence, US oil inventory data, the US redbook, the Italian
trade balance and Germany's Ifo Business Climate index.
For a recap of Monday's market action, click .
Tune into Benzinga's #PreMarket Prep today to hear Barry James,
Sang Lucci and Nic Chahine by clicking
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advice. All rights reserved.
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