Atlanta's Federal Reserve Bank President Dennis Lockhart told
reporters on Tuesday that the bank has not ruled out the
possibility of beginning to taper its stimulus spending at the
Fed's December meeting.
Lockhart also commented that monetary policy should continue to
be accommodative for "quite some time"; adding to growing confusion
about the bank's direction.
In other news around the markets:
Chinese shares slid after investors were disappointed with the
Chinese government's initial release of the nation's blueprints for
the coming decade. The reform agenda did not include many specific
details and instead offered a more general overview of the nation's
direction. US Airways and American Airlines have come to an
antitrust settlement with the government, allowing them to move
forward on their $17 billion merger. When the two combine, they
will become the world's largest airline. After a partnership
between Kraft Foods and Starbucks went sour in 2010, Starbucks
terminated the agreement without Kraft's consent, resulting in a
bitter, 3 year legal battle. On Tuesday the fight ended with
Starbucks ordered to pay $2.23 billion in damages as well as $527
million for attorney's fees. As Africa becomes more tech savy and
urbanized, Samsung is hoping to gain market share and double its
sales on the continent in 2014. The company expects to sell 50
percent of Africa's smartphones next year; with usage of the mobile
devices on the continent forecast to increase to 20 percent of the
Asian markets were down across the board, the Japanese NIKKEI
lost 0.15 percent, China's Shanghai composite fell 1.83 percent and
the Shenzhen composite lost 1.93 percent. The Hang Seng index was
down 1.91 percent and the JSX composite fell 1.80 percent.
Europe's markets were started the day on a low note; the UK's
FTSE was down 0.83 percent and the eurozone's STOXX 600fell 0.41
percent. The German DAX was down 0.23 percent and France's CAC 50
lost 0.33 percent.
Energy futures gained on Wednesday morning, Brent futures were
up 0.59 percent and WTI futures gained 0.19 percent. Gold was up
0.28 percent, but silver lost 0.09 percent. Industrial metals were
down across the board with copper posting the largest losses, down
The euro was steady at $1.34, and the pound gained 0.10 percent
against the dollar. The dollar lost 0.10 percent to the yen but
gained 0.09 percent on the Australian dollar.
Notable earnings released on Tuesday included:
D.R. Horton, Inc. (NYSE:
) reported fourth quarter EPS of $0.40 on revenue of $1.82 billion,
compared to last year's EPS of $0.30 on revenue of $1.30 billion.
YRC Worldwide, Inc. (NASDAQ:
) reported a third quarter loss of $4.45 on revenue of $1.25
billion, compared to last year's loss of $4.30 on revenue of $1.24
billion. DISH Network Corporation (NASDAQ:
) reported third quarter ESP of $0.68 on revenue of $3.60 billion,
compared to last year's loss of $0.35 on revenue of $3.52 billion.
Stocks moving in the Premarket included:
United States Steel Corp (NYSE:
) gained 2.70 percent in premarket trade after losing 0.66 percent
on Tuesday. Red Hat Inc. (NYSE:
) gained 0.85 percent in premarket trade after rising 3.89 percent
over the past five days. Alcoa Inc. (NYSE:
) lost 1.12 percent in premarket trade after suffering a steep 7.35
percent loss on Thursday. Bank of America Corp (NYSE:
) lost 0.84 percent in premarket trade after rising 2.80 percent
over the past week.
Earnings reports expected on Wednesday include:
Cisco Systems, Inc. (NASDAQ:
) is expected to report first quarter EPS of $0.51 on revenue of
$12.36 billion, compared to last year's EPS of $0.48 on revenue of
$11.88 billion. Macy's Inc. (NYSE:
) is expected to report third quarter EPS of $0.39 on revenue of
$6.20 billion, compared to last year's EPS of $0.36 on revenue of
$6.08 billion. Pinnacle Foods (NYSE:
) is expected to report third quarter EPS of $0.35 on revenue of
On Wednesday, all eyes will be on the Fed as Chairman Ben
Bernanke is set to speak. In Europe, several economic releases
are due out including the Bank of England's inflation report, the
British unemployment rate, eurozone industrial production and
For a recap of Tuesday's market action click .
Tune into Benzinga's pre-market info show with Dennis Dick and
(c) 2013 Benzinga.com. Benzinga does not provide investment
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