Investors remained focused on the state of the Chinese economy
on Wednesday morning after the nation released much weaker than
expected export data at the beginning of the week.
Asian shares tumbled as investors worried that the world's
second largest economy was stuck in a rut.
On top of disappointing economic data, Chinese companies have
been reporting dismal figures as well. Power equipment manufacturer
Baoding Tianwei Baobian Electric Co. reported a net loss for the
second year in a row, causing the company's shares to fall 5.1
percent on Wednesday and its corporate bond to be suspended for the
second consecutive day.
In other news around the markets:
After more than a decade of working to integrate Russia into
Western financial systems, US and European officials are preparing
to enact sanctions that will reverse their previous efforts. For
the moment, officials are focusing on targeted, individual
sanctions in an effort to protect Western businesses from Russian
retaliation. General Motors shares are on the decline as the
company is being investigated for taking almost ten years to recall
faulty cars which have been linked to 12 deaths. On Tuesday, GM's
stock lost five percent to trade at $1.91 per share as the company
faced probes from several institutions. The media industry has
begun to voice concern about Comcast's proposed takeover of Time
Warner Cable. Regulators will be tasked with determining whether
combined company would have too much control over the broadband
market as well as TV-viewing data before the $45 billion deal goes
ahead. On Wednesday, rescue teams expanded their search for a
missing Malaysia Airlines jetliner, which was destined for Beijing,
to include everything from China to the Andaman Sea. With no leads
and no sign of the jet or the 239 people on board, authorities have
been unable to explain the plane's disappearance.
Asian markets continued to tumble on worries about China's
slowing economy. The Japanese NIKKEI lost 2.59 percent, the
Shanghai composite was down 0.17 percent, the South Korean KOSPI
lost 1.60 percent and the Hang Seng index was down 1.64
European markets were mixed; the UK's FTSE was down 0.06
percent, the eurozone's STOXX 600 lost 0.06 percent and France's
CAC 40 was down 0.48 percent. However, the German DAX gained 0.46
percent and Italy's MIB was up 0.39 percent.
Energy futures were lower as investors worried about waning
global demand. Brent futures lost 0.51 percent and WTI futures were
down 1.80 percent. Gold and silver gained 0.85 percent and 1.44
percent consecutively, but industrial metals were down across the
board with copper posting the largest loss, down 2.46 percent.
Currency markets were relatively quiet; the euro lost 0.11
percent against the dollar and the pound was up 0.08 percent
against the greenback. The dollar lost 0.14 percent to the yen, but
gained 0.16 percent against the Australian dollar.
Notable earnings released on Tuesday included:
Caesars Entertainment Corporation (NASDAQ:
) reported a fourth quarter loss of $1.49 on revenue of $2.08
billion, compared to last year's loss of $3.75 on revenue of $2.02
billion. American Eagle Outfitters, Inc (NYSE:
) reported fourth quarter EPS of $0.27 on revenue of $1.04 billion,
compared to last year's EPS of $0.55 on revenue of $1.12 billion.
The Bon-Ton Stores, Inc. (NASDAQ:
) reported fourth quarter EPS of $3.04 on revenue of $914.90
million, compared to last year's EPS of $3.73 on revenue of $1.03
Stocks moving in the Premarket included:
Walgreen Co. (NYSE:
) gained 0.60 percent in premarket trade after losing 2.86 percent
over the past week. Walt Disney Co. (NYSE:
) was up 0.56 percent in premarket trade after falling 1.12 percent
on Tuesday. Freeport-McMoRan Copper & Gold Inc (NYSE:
) lost 1.01 percent in premarket trade after falling 9.44 percent
over the past five days. Motorola Solutions Inc (NYSE:
) was down 0.85 percent in premarket trade after losing 0.53
percent on Tuesday.
Notable earnings releases expected on Wednesday include:
Williams-Sonoma, Inc (NYSE:
) is expected to report fourth quarter EPS of $1.36 on revenue of
$1.43 billion, compared to last year's EPS of $1.34 on revenue of
$1.41 billion. Express, Inc (NYSE:
) is expected to report fourth quarter EPS of $0.59 on revenue of
$722.02 million, compared to last year's EPS of $0.75 on revenue of
$728.71 million. Vail Resorts, Inc. (NYSE:
) is expected to report second quarter EPS of $1.87 on revenue of
$471.16 million, compared to last year's EPS of $1.65 on revenue of
$422.45 million. Krispy Kreme Doughnuts, Inc. (NYSE:
) is expected to report fourth quarter EPS of $0.13 on revenue of
$119.59 million, compared to last year's EPS of $0.09 on revenue of
Wednesday will be another quiet day for economic releases.
Investors will be watching for eurozone industrial production,
British trade balance, Spanish CPI, Indian CPI, and the Australian
For a recap of Tuesday's market action, click .
Tune into Benzinga's pre-market info show with Dennis Dick and
© 2014 Benzinga.com. Benzinga does not provide investment
advice. All rights reserved.
Free Trading Education -
Check out the free events taking place on Marketfy
this week. Spaces are limited. Sign up today.