According to The
Wall Street Journal
, a letter from the Federal Reserve Bank of New York to Deutsche
Bank alerted the lender of its financial reporting problems back in
December, but the bank did nothing to fix them.
In fact, the New York Fed is alleging that Deutsche Bank has
known about its reporting errors for years. The bank is under
scrutiny at the moment as U.S. regulators crack down on overseas
banks operating in the U.S. to ensure the region's financial health
In other news around the markets:
Apple released strong earnings on Tuesday that showed sales of the
company's iPhones had grown 12 percent. However, iPad sales were
disappointing, something CEO Tim Cook has said he isn't worried
about. In his view, the iPad is still finding its footing as a
relatively new product, and the company expects demand for the
tablets to pick up in the corporate market. On Wednesday, Chinese
officials detained five people who are linked to Shanghai Husi Food
Co Ltd.'s selling of rotten meat to its customers. The Shanghai
food and drug watchdog has said that the investigation into the
company's safety violations shows that the violations were
organized by the company and were not just the actions of a few
individuals. The U.S. has stopped all flights to Israel because of
security concerns as the Israeli army continues its push to fend
off Hamas Islamists. Secretary of State John Kerry is now in Tel
Aviv trying to organize a ceasefire agreement as the region's
conflict worsens and the death toll rises to include more and more
civilians. On Wednesday, the Ukrainian government announced that
the downed Malaysian Airlines plane's black boxes have arrived in
the U.K. After the plane was accidentally shot down near the
Russian border last week, Ukrainian separatists returned the
remains of the near 300 victims and turned over the black boxes so
that an international investigation can take place.
Asian markets were mostly higher with the exception of the
NIKKEI and the Shenzhen composite, which lost 0.10 percent and 0.51
percent, respectively. The Shanghai composite was up 0.14 percent,
the Hang Seng index rose 0.80 percent and the KOSPI was flat.
European markets were up across the board; the FTSE gained 0.24
percent, the STOXX 600 rose 0.28 percent, the DAX gained 0.49
percent and the CAC 40 was up 0.41 percent.
Energy futures were mixed ahead of U.S. inventory data; Brent
futures were up 0.06 percent and WTI futures lost 0.20 percent.
Gold and silver were up 0.17 and 0.06 percent, respectively, but
industrial metals were mixed. Copper lost 0.25 percent and tin was
down 0.45 percent, but aluminum rose 1.14 percent and zinc gained
The euro was steady at $1.3465 on Wednesday morning after
falling to an eight-month low on Tuesday. The common currency also
lost to the yen, down 0.11 percent, but gained 0.13 percent against
the pound. The dollar was also lower against the yen, down 0.12
percent, but gained 0.14 percent against the pound and 0.01 percent
against the franc.
Notable earnings released on Tuesday included:
) reported third quarter EPS of $1.28 on revenue of $37.43 billion,
compared to last year's EPS of $1.07 on revenue of $35.32 billion.
) reported second quarter EPS of $1.40 on revenue of $7.18 billion,
compared to last year's EPS of $1.38 on revenue of $7.08 billion.
) reported fourth quarter EPS of $0.55 on revenue of $23.38
billion, compared to last year's EPS of $0.66 on revenue of $19.93
billion. Coca-Cola (NYSE:
) reported second quarter EPS of $0.64 on revenue of $12.57
billion, compared to last year's EPS of $0.63 on revenue of $12.75
billion. Verizon Communications (NYSE:
) reported second quarter EPS of $0.91 on revenue of $31.50
billion, compared to last year's EPS of $0.73 on revenue of $29.79
Stocks moving in the premarket included:
Southern Co. (NYSE:
) was up 2.98 percent in premarket trade after rising 0.13 percent
on Tuesday. Microsoft (NASDAQ:
) gained 1.61 percent in premarket trade after rising 5.61 percent
over the past week. Nabors Industries Ltd. (NYSE:
) was down 3.31 percent in premarket trade after gaining 1.83
percent over the past five days. E I du Pont de Nemours and
) was down 1.00 percent in premarket trade after losing 0.90
percent on Tuesday.
Notable earnings releases expected on Wednesday include:
) is expected to report second quarter EPS of $0.65 on revenue of
$33.36 billion, compared to last year's EPS of $0.67 on revenue of
$32.08 billion. Boeing Company (NYSE:
) is expected to report second quarter EPS of $1.99 on revenue of
$22.44 billion, compared to last year's EPS of $1.67 on revenue of
$21.82 billion. PepsiCo (NYSE:
) is expected to report second quarter EPS of $1.23 on revenue of
$16.79 billion, compared to last year's EPS of $1.31 on revenue of
$16.81 billion. Dow Chemical Company (NYSE:
) is expected to report second quarter EPS of $0.74 on revenue of
$14.85 billion, compared to last year's EPS of $0.64 on revenue of
Wednesday's economic calendar will consist mostly of Asian
releases, including Chinese manufacturing PMI, Japanese
manufacturing PMI, the Japanese trade balance and the Reserve Bank
of New Zealand's interest rate decision. Other notable releases
around the world include U.S. oil inventory data, British mortgage
approvals and Canadian retail sales.
For a recap of Tuesday's market action, click .
Tune into Benzinga's #PreMarket Prep today to hear Phil
Pearlman, Larry McMillan, Michael Lamothe & Harlan Pyan by
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