U.S. employment figures became a lot more important on Tuesday
after Federal Reserve Chair Janet Yellen said the US central bank
would consider raising its interest rate sooner if the job market
improves ahead of expectations.
Speaking before Congress, Yellen defended the bank's
accommodative stance, saying that the U.S.' recovery was still in
progress and that the economy was not yet ready to stand on its
However, Yellen did admit that the bank was open to a sooner
than expected rate hike if jobs data improves more quickly than
In other news around the markets:
European policymakers will meet on Wednesday to discuss whether or
not to approve a new round of sanctions against Moscow because of
the Kremlin's lack of effort in diffusing the crisis in Ukraine.
The new round of sanctions, expected to be approved later in the
day, will target companies linked to the conflict in Ukraine rather
than individuals tied to the government. More evidence that
Beijing's stimulus efforts were paying off came in the form of GDP
data on Wednesday. The report showed that China's economy expanded
7.5 percent in the second quarter, surpassing expectations for 7.4
percent growth. The figure helped boost confidence as it indicates
that the nation's economy is getting back on track after months of
lackluster economic reports. Research firm Counterpoint released
the results of a survey which showed that Samsung Electronics'
market share in the smartphone space is slowly slipping away. The
company is losing customers to cheaper rivals and will likely see a
decline in purchases once Apple launches its new iPhone 6. Samsung
is still nursing wounds from a poor reception of the Galaxy S5, as
it didn't meet consumer expectations. Apple and IBM announced that
the former rivals will team up in the mobile device space in order
to help both companies expand their reach in the marketplace. The
Wall Street Journal reported that two will work together to create
easy to use business apps and plan to sell iPhones and iPads to
IBM's corporate customers.
Asian markets were mostly lower with the exception of the KOSPI
and the Hang Seng Index, which gained 0.04 percent and 0.27 percent
respectively. The NIKKEI was down 0.10 percent, the Shanghai
composite lost 0.15 percent and the Shenzhen composite was down
European markets were up across the board; the UK's FTSE rose
0.89 percent, the STOXX 600 gained 1.02 percent, the DAX was up
1.10 percent and the CAC 40 rose 1.29 percent.
Energy futures were higher; Brent futures gained 0.35 percent
and WTI futures were up 0.79 percent. Gold was up 0.10 percent,
silver declined 0.52 percent, while industrial metals were mostly
higher. Copper gained 0.03 percent, aluminum rose 0.93 percent and
tin was up 0.07 percent.
The euro was on the decline on Wednesday, falling 0.29 percent
against the dollar, 0.23 percent against the yen and 0.20 percent
against the pound. The dollar was flat against the yen, but gained
0.21 percent against the franc and 0.20 percent against the
Notable earnings released on Tuesday included:
J P Morgan Chase (NYSE:
) reported second quarter EPS of $1.59 on revenue of $24.45
billion, compared to last year's EPS of $1.60 on revenue of $25.96
billion. Johnson & Johnson (NYSE:
) reported second quarter EPS of $1.66 on revenue of $19.50
billion, compared to last year's EPS of $1.48 on revenue of $17.88
billion. Intel Corporation (NASDAQ:
) reported second quarter EPS of $0.55 on revenue of $13.80
billion, compared to last year's EPS of $0.39 on revenue of $12.81
billion. Goldman Sachs (NYSE:
) reported second quarter EPS of $4.10 on revenue of $9.13 billion,
compared to last year's EPS of $3.70 on revenue of $8.61 billion.
) reported second quarter EPS of $0.37 on revenue of $1.04 billion,
compared to last year's EPS of $0.35 on revenue of $1.07 billion.
Stocks moving in the Premarket included:
) was up 5.01 percent in premarket trade after rising 2.99 percent
over the past week. Apple (NASDAQ:
) rose 2.04 percent in premarket trade after losing 1.17 percent on
Tuesday. International Business Machines (NYSE:
) gained 1.95 percent in premarket trade after falling 0.72 percent
on Tuesday. Yahoo! (NASDAQ:
) was down 1.83 percent in premarket trade after gaining 3.13
percent over the past five days.
Notable earnings releases expected on Wednesday include:
Bank of America (NYSE:
) is expected to report second quarter EPS of $0.30 on revenue of
$21.71 billion, compared to last year's EPS of $0.32 on revenue of
$22.73 billion. eBay (NASDAQ:
) is expected to report second quarter EPS of $0.69 on revenue of
$4.38 billion, compared to last year's EPS of $0.63 on revenue of
$3.88 billion. Abbott Laboratories (NYSE:
) is expected to report second quarter EPS of $0.51 on revenue of
$5.53 billion, compared to last year's EPS of $0.46 on revenue of
$5.45 billion. U.S. Bancorp (NYSE:
) is expected to report second quarter EPS of $0.77 on revenue of
$4.92 billion, compared to last year's EPS of $0.76 on revenue of
$4.95 billion. PNC Financial Services (NYSE:
) is expected to report second quarter EPS of $1.78 on revenue of
$3.82 billion, compared to last year's EPS of $1.99 on revenue of
Notable economic releases due out on Wednesday include U.S.
industrial production, U.S. oil inventory data, the British
unemployment rate and U.S. PPI.
For a recap of Tuesday's market action, click .
Tune into Benzinga's #PreMarket Prep today to hear Chris
Kaufman, Kevin McPartland & Ryan Detrick by clicking
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