On Tuesday, the Iraqi government held its first session with its
new parliament including representation from Sunnis and Kurds.
However, both groups walked out of the meeting after the Shi'ite
government did not announce Prime Minister Nouri al-Maliki's
replacement. Meanwhile, fighting throughout northern Iraq continued
as Sunni insurgents tried to expand their stronghold.
Reuters reported that the Iraqi parliament is not expected to
reconvene for a least a week, leaving the nation divided without
any cohesive leadership at a time when it is most needed.
In other news around the markets:
After Ukrainian President Petro Poroshenko announced that he was
planning to launch an offensive against pro-Moscow rebels and end
the nation's week-long ceasefire, Kiev reported that it had
forcefully regained control of two of the nation's eastern cities
previously held by rebel groups. Poroshenko is hoping to secure the
nation's borders and force rebel groups into agreeing to his peace
plans. With six world powers and Iran finishing up negotiations
over Tehran's nuclear capabilities this week, companies from around
the world are preparing to jump into one of the largest markets in
the Middle East should the sanctions be lifted. However, ending the
decade old dispute over Iran's nuclear program has not been easy,
with both sides struggling to agree to the terms of a permanent
agreement. Instead, many are anticipating that the negotiators will
extend the July 20 deadline by six months. Nestle sold its Juicy
Juice brand to Brynwood Partners in what Brynwood has said was the
company's largest purchase in 30 years. While the financial details
of the deal are not public knowledge, The Wall Street Journal
reported that sources close to the deal claim it couldn't have
exceeded $200 million. Swiss pharmaceutical company Roche is
planning to acquire Seragon Pharmaceuticals for $725 million in
cash. Seragon, a private company which focuses primarily on breast
cancer research, could draw up to $1 billion more as the deal
Asian markets were moderately higher with the exception of
China's Shanghai and Shenzhen composites, which lost 0.21 percent
and 0.19 percent respectively. The NIKKEI rose 0.36 percent, the
KOSPI was up 0.57 percent and the Hang Seng index gained 1.03
European markets were up across the board; the FTSE and the
STOXX 600 both gained 0.29 percent, the IBEX rose 0.21 percent, the
DAX was up 0.27 percent and the MIB gained 0.29 percent.
Energy futures were modestly higher; Brent futures gained 0.02
percent and WTI futures were up 0.03 percent. Gold and silver lost
0.05 percent and 0.36 percent respectively and industrial metals
also fell lower with the exception of tin, which gained 1.13
percent. Copper was down 0.44 percent, aluminum fell 0.37 percent
and zinc lost 1.42 percent.
Currency markets were quiet on Wednesday; the euro lost 0.08
percent against the dollar and 0.11 percent against the pound. The
dollar was lower against the Australian dollar, down 0.44 percent,
but rose 0.09 percent against the yen.
Notable earnings released on Tuesday included:
) reported fourth quarter EPS of $0.40 on revenue of $639.00
million, compared to last year's EPS of $0.38 on revenue of $585.30
million. A. Schulman (NASDAQ:
) reported third quarter EPS of $0.66 on revenue of $627.50
million, compared to last year's EPS of $0.74 on revenue of $645.70
million. Acuity Brands (NYSE:
) reported third quarter EPS of $1.00 on revenue of $603.90
million, compared to last year's EPS of $0.97 on revenue of $541.50
Stocks moving in the Premarket included:
Exxon Mobil (NYSE:
) was up 0.24 percent in premarket trade after a week of choppy
trading took the stock down 1.33 percent. Apple (NASDAQ:
) rose 0.04 percent in premarket trade after gaining 3.59 percent
over the past five days. Harley-Davidson (NYSE:
) was down 0.87 percent in premarket trade after rising 0.69
percent on Tuesday.
Notable earnings expected on Wednesday include:
Synnex Corporation (NYSE:
) is expected to report second quarter EPS of $1.36 on revenue of
$3.17 billion, compared to last year's EPS of $0.81 on revenue of
$2.59 billion. UniFirst Corporation (NYSE:
) is expected to report third quarter EPS of $1.42 on revenue of
$349.24 million, compared to last year's EPS of $1.43 on revenue of
$335.76 million. Constellation Brands (NYSE:
) is expected to report first quarter EPS of $0.93 on revenue of
$1.41 billion, compared to last year's EPS of $0.38 on revenue of
Notable economic releases due out on Wednesday include China's
non-manufacturing PMI, US oil inventory data, eurozone GDP and
British construction PMI.
For a recap of Tuesday's market action, click .
Tune into Benzinga's #PreMarket Prep today to hear Dennis
Gartman, Harlan Pyan & Todd Schoenberger by clicking
© 2014 Benzinga.com. Benzinga does not provide investment
advice. All rights reserved.
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