On Tuesday, the US sent 130 additional troops to Iraq to help
free a group of Iraqi citizens who have been trapped on Mount
Sinjar by Islamic State militants.
However, while the US worked to get the conflict in Northern
Iraq under control, political turmoil has took hold in Baghdad,
setting the stage for a dangerous political battle.
Though Haider al-Abadi has been named Iraq's new Prime Minister,
Nouri al-Maliki has refused to step aside and let Abadi take over
his role. The situation has created chaos in the capital with at
least 17 people killed in car bombings on Tuesday and a suicide
bomber near Abadi's home.
In other news around the markets:
FleetCor Technologies announced that it was planning to buy Comdata
Inc from Ceridian LLC for $3.45 billion. The deal will allow
FleetCor to expand its business into the virtual payments space as
Comdata produces gift cards and payroll cards among other services.
On Wednesday, China's National Bureau of Statistics released a
report showing that industrial production met expectations with a 9
percent increase in July, but that retail sales missed the mark
with just a 12.2 percent rise. The data compounded growing worries
about the Chinese economy and added to speculation that Beijing
would need to introduce further stimulus measures in the future. As
the Ukrainian army tightened its ring around Donetsk, the last
major separatist stronghold, rebel forces ambushed a military bus,
killed twelve Ukrainian soldiers and took an unknown number
captive. The incident marks the nationalist fighters' largest loss
of life in a single day since the fighting began. Following April's
sales tax hike, the Japanese economy struggled in the second
quarter with a steep contraction. Real gross domestic product fell
6.8 percent from April to June, a bit better than the forecast 7.1
percent drop. Most expect that the sharp decline could prompt
Japanese policymakers to provide new stimulus measures to help deal
with the effects of a higher sales tax.
Asian markets were higher; the NIKKEI gained 0.35 percent, the
Shanghai composite was up 0.06 percent, the KOSPI gained 1.02
percent, the Shenzhen composite rose 0.10 percent and the Hang Seng
index was up 0.81 percent.
European markets were up across the board; the FTSE rose 0.04
percent, the STOXX 600 rose 0.44 percent, the DAX gained 0.95
percent and the CAC 40 was up 0.74 percent.
Energy futures were lower after reports that OPEC's output had
risen in July. Brent futures were down 0.41 percent and WTI futures
lost 0.08 percent. Gold lost 0.13 percent, but silver was up 0.03
percent and industrial metals were also mixed. Copper lost 0.73
percent but aluminum and zinc gained 0.91 percent and 1.13 percent
The dollar was higher on Wednesday, gaining 0.16 percent against
the euro, 0.21 percent against the yen and 0.18 percent against the
franc. The euro continued its slide and lost 0.11 percent against
the pound and 0.40 percent against the Australian dollar.
Notable earnings released on Tuesday included:
CST Brands (NYSE:
) reported second quarter EPS of $0.43 on revenue of $3.26 billion,
compared to last year's EPS of $0.66 on revenue of $3.21 billion.
) reported third quarter EPS of $1.21 on revenue of $1.20 billion,
compared to last year's EPS of $1.07 on revenue of $1.09 billion.
Flowers Foods (NYSE:
) reported second quarter EPS of $0.21 on revenue of $877.40
million, compared to last year's EPS of $0.24 on revenue of $898.15
million. Fossil (NASDAQ:
) reported second quarter EPS of $0.98 on revenue of $773.80
million, compared to last year's EPS of $1.15 on revenue of $706.20
Stocks moving in the Premarket included:
Carnival Corp (NYSE:
) was up 1.16 percent in premarket trade after gaining 2.67 percent
over the past five days. Ford Motor (NYSE:
) gained 1.10 percent in premarket trade after rising 2.02 percent
over the past week. Qualcomm (NASDAQ:
) was up 0.69 percent in premarket trade after losing 0.79 percent
on Tuesday. Facebook (NASDAQ:
) was up 0.33 percent in premarket trade after falling 0.83 percent
Notable earnings releases expected on Wednesday include:
Cisco Systems (NASDAQ:
) is expected to report fourth quarter EPS of $0.53 on revenue of
$12.14 billion, compared to last year's EPS of $0.52 on revenue of
$12.42 billion. Deere & Company (NYSE:
) is expected to report third quarter EPS of $2.20 on revenue of
$8.75 billion, compared to last year's EPS of $2.56 on revenue of
$9.32 billion. Macy's (NYSE:
) is expected to report second quarter EPS of $0.86 on revenue of
$6.30 billion, compared to last year's EPS of $0.72 on revenue of
$6.07 billion. Pinnacle Foods (NYSE:
) is expected to report second quarter EPS of $0.33 on revenue of
$629.33 million, compared to last year's EPS of $0.29 on revenue of
Notable economic releases expected on Wednesday will include US
retail sales, US oil inventory data, eurozone industrial
production, the British unemployment rate, Spanish CPI, French CPI
and German CPI.
For a recap of Tuesday's market action, click .
Tune into Benzinga's #PreMarket Prep today to hear Nic Chahine,
William Decker & Rev. Emmanuel Lemelson by clicking
© 2014 Benzinga.com. Benzinga does not provide investment
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