#PreMarket Primer: Wednesday, December 4: Taper Talk Back On The Table
Federal Reserve taper speculation is beginning to take hold on the markets ahead of the closely watched nonfarm payrolls data, due out on Friday.
Most expect to see the nonfarm payrolls increase by 180,000 in November. The figure would be lower than October's 204,000 increase and slightly below the monthly average of 186,000, but most would consider it a solid reading. Seasonal hiring could help buoy the figure, but because Thanksgiving fell late in November, holiday hiring isn't expected to play a huge role in the data.
Also on Friday, the US will release an employment report which many see as tied to the Fed's taper plans. Some see strong employment data from November as reason for the Fed to begin tapering as early as December. However, the general consensus is that the US central bank will wait until congress can agree on a budget deal and evidence proves that the labor market's recovery is sustainable.
Asian markets were mixed on Wednesday. The Japanese NIKKEI lost 2.17 percent and the South Korean KOSPI was down 1.12 percent. However, China's Shanghai composite was up 1.31 percent and the Shenzhen composite gained 1.39 percent.
European markets were down across the board. The UK's FTSE fell 0.95 percent and the eurozone's STOXX 600 slipped 2.06 percent. France's CAC 40 fell 2.65 percent and Italy's MIB was down 1.95 percent.
Energy futures were on the rise, Brent futures gained 0.03 percent and WTI futures were up 1.18 percent. Gold lost 0.12 percent, but silver was up 0.26 percent. Industrial metals were mostly lower with aluminum down 0.20 percent and tin down 0.22 percent.
The euro lost 0.13 percent to the dollar and the pound fell 0.11 percent against the greenback. The dollar gained 0.26 percent against the yen and 1.27 percent against the Australian dollar.
Notable earnings released on Tuesday included:
Bank Of Montreal (NYSE: BMO ) reported fourth quarter EPS of $1.64 on revenue of $4.19 billion, compared to last year's EPS of $1.65 on revenue of $4.18 billion.OmniVision Technologies, Inc. (NASDAQ: OVTI ) reported second quarter EPS of $0.60 on revenue of $397.20 million, compared to last year's EPS of $0.33 on revenue of $390.14 billion. United Natural Foods, Inc. (NASDAQ: UNFI ) reported first quarter EPS of $0.46 on revenue of $1.69 billion, compared to last year's EPS of $0.46 on revenue of $1.41 billion.
Stocks moving in the Premarket included:
Hewlett-Packard Co (NYSE: HPQ ) gained 1.38 percent in premarket trade after rising 0.66 percent on TuesdayVerizon Communications Inc (NYSE: VZ ) was up 0.81 percent in premarket trade after falling 0.66 percent over the past week. The Coca-Cola Co (NYSE: KO ) gained 0.37 percent in premarket trade after rising 0.67 percent on Tuesday AT&T Inc (NYSE: T ) lost 0.78 percent in premarket trade after falling 1.89 percent over the past five days.
Notable earnings expected on Wednesday include:
Brown Forman Corporation (NYSE: BFB ) is expected to report second quarter EPS of $0.91 on revenue of $1.04 billion, compared to last year's EPS of $0.80 on revenue of $1.01 billion.Avago Technologies Limited (NASDAQ: AVGO ) is expected to report fourth quarter EPS of $0.82 on revenue of $731.58 million, compared to last year's EPS of $0.71 on revenue of $618.00 million. Aeropostale Inc. (NYSE: ARO ) is expected to report a third quarter loss of $0.24 per share on revenue of $520.04 million, compared to last year's EPS of $0.31 on revenue of $605.92 million
There will be several important releases on Wednesday's economic calendar including US new home sales, US crude inventories, the US beige book, US ISM non-manufacturing PMI, eurozone GPD, Eurozone retail sales, and services PMI from the eurozone, the UK, Germany, France, Spain, and Italy.
For a recap of Tuesday's market action, click .
Tune into Benzinga's pre-market info show with Dennis Dick and Joel Elconin here .
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