The US Commerce Department took the first step to do away with a
near forty year old ban on selling unrefined US oil abroad when it
approved requests from both Pioneer Natural Resources Co. and
Enterprise Products Partners LP to begin selling condensate oil to
Permission has only been granted to these two companies, but
many believe that the motion to allow the export of condensate will
push other businesses to ask for the same right.
The Commerce Department issued a statement on Tuesday saying
that the policy on US crude oil exports hasn't changed, but
The Wall Street Journal
reported that the department is already working to create industry
wide rules that will allow companies to ship abroad.
In other news around the markets:
With BNP Paribas SA facing a near $10 billion fine for violating US
sanctions, many other European banks are beginning to worry that
they could face a similar penalty.
Credit Agricole SA
are all being investigated for similar accusations; but if they are
found guilty, fines of that magnitude could have economic
repercussions across the eurozone. On Wednesday, the Russian
Parliament denied President Vladimir Putin's request to order
military intervention in Ukraine. The decision was intended to help
promote the ongoing peace efforts in Ukraine as both the Ukrainian
government and pro-Russia separatists have laid down their weapons
for a seven day ceasefire. However, the Parliament said Putin's
ability to call on the military could be reinstated on short
notice. On Wednesday, US teams arrived in Iraq to help hold off the
rebel militants who have gained control of much of the north of the
nation. Around the same time, rebels from the Islamic State in Iraq
and the Levant (
) attacked one of Iraq's largest air bases in Yathrib, just 90 km
from Baghdad. At its annual developer conference this week, Google
is expected to reveal plans to expand its software to encompass the
growing variety of internet connected devices. The conference
begins on Thursday morning, and will likely highlight Google's new
ventures into everything from cars to televisions.
Asian markets were lower; the NIKKEI fell 0.71 percent, the
Shanghai composite lost 0.41 percent, the Shenzhen composite was
down 0.42 percent and the KOSPI lost 0.63 percent.
European markets were down across the board, spooked by worries
about the conflict in Iraq. The FTSE was down 0.73 percent, the
STOXX 600 lost 0.72 percent, the DAX fell 0.45 percent and the CAC
40 was down 0.80 percent.
Brent futures dipped 0.63 percent as investors began to believe
that the risk in Iraq has already been priced in, while WTI futures
gained 0.43 percent on speculation that US oil stocks fell last
week. Gold and silver were down 0.62 percent and 0.96 percent
respectively, while industrial metals were mostly higher. Copper
gained 0.08 percent, aluminum was up 0.32 percent and tin gained
Currency markets were quiet on Wednesday; the euro was steady at
$1.3604 and gained 0.07 percent against the pound. The dollar lost
0.07 percent against the yen, but gained 0.09 percent against the
Notable earnings released on Tuesday included:
Apogee Enterprises, Inc. (NASDAQ:
) reported first quarter EPS of $0.21 on revenue of $210.90
million, compared to last year's EPS of $0.14 on revenue of $179.31
million. Walgreen Co. (NYSE:
) reported third quarter EPS of $0.91 on revenue of $19.40 billion,
compared to last year's EPS of $0.85 on revenue of $18.31 billion.
Stocks moving in the Premarket included:
) was up 1.46 percent in premarket trade after falling 1.20 percent
on Tuesday. Walt Disney (NYSE:
) gained 1.09 percent in premarket trade after losing 0.58 percent
over the past five days. Walgreen (NYSE:
) gained 0.61 percent in premarket trade after falling 1.70 percent
on Tuesday. Carnival Corp (NYSE:
) was down 0.86 percent in premarket trade after losing 2.99
percent on Tuesday.
Notable earnings expected on Wednesday include:
Bed Bath & Beyond (NASDAQ:
) is expected to report first quarter EPS of $0.95 on revenue of
$2.69 billion, compared to last year's EPS of $0.93 on revenue of
$2.61 billion. General Mills (NYSE:
) is expected to report fourth quarter EPS of $0.72 on revenue of
$4.43 billion, compared to last year's EPS of $0.53 on revenue of
$4.41 billion. Monsanto Company (NYSE:
) is expected to report third quarter EPS of $1.55 on revenue of
$4.41 billion, compared to last year's EPS of $1.66 on revenue of
$4.25 billion. Barnes & Noble (NYSE:
) is expected to report a fourth quarter loss of $0.59 on revenue
of $1.19 billion, compared to last year's loss of $1.80 on revenue
of $1.28 billion.
US GDP will be the star of Wednesday's economic calendar as
investors wait to see whether or not the nation's growth picked up
in the second quarter after difficult weather depressed the first
quarter figures. Other notable economic releases include US oil
inventory data, US services PMI, Italian consumer confidence,
Spanish PPI, and Germany's GfK consumer climate data.
For a recap of Tuesday's market action, click .
Tune into Benzinga's #PreMarket Prep today to hear Kate Stalter,
Greg Harmon and Martha Stokes by clicking
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