#PreMarket Primer: Tuesday, November 12: China's Economic Blueprints Anxiously Awaited
A four day meeting of China’s Communist Party ended on Tuesday with investors anxious to see the nation’s plans for the next ten years.
Most expect China’s policy makers to plan important changes needed to balance the nation’s economy while still preserving its fragile recovery. Most are expecting the report to be released without any major surprises, although some of the nation’s government officials have claimed that the four day meeting will end with “unprecedented” reforms.
In other news around the markets:
- Demand for homes in the UK jumped in October, resulting in the largest house price increase in more than 11 years. Many investors worry that the nation’s rising house prices without a commensurate recovery indicates that the UK could be facing a new property bubble.
- Talks between Western leaders and Iranian officials resulted in a partial deal on Iran’s disputed nuclear program. Although Iran hasn’t agreed to make its entire nuclear development program transparent, the nation did agree to open up several parts of its nuclear infrastructure to UN inspectors. The Iranian concession is a good indicator for talks coming up on November 20.
- At Wednesday’s meeting, the European Commission is expected to move forward with a review of the German economy in order to correct its trade imbalance and help spur the economies of the rest of the bloc.
- Three days after a Typhoon in the Philippines, the death toll continued to rise as food and water became scarcer. The massive storm destroyed much of the nation’s infrastructure, making rescue efforts more complicated.
Asian markets were mixed on Tuesday, the Japanese NIKKEI gained 2.23 percent and China’s Shanghai composite was up 0.82 percent. However, the Hang Seng index lost 0.54 percent and Indonesia’s JSX composite fell 0.21 percent.
European markets were modestly higher, the UK’s FTSE gained 0.30 percent, the eurozone’s STOXX 600 was little changed, and Italy’s MIB was up 0.77 percent.
Energy futures slipped on Tuesday, Brent futures were down 0.18 percent and WTI futures lost 0.25 percent. Gold lost 0.10 percent and silver fell 0.50 percent.
The euro fell 0.10 percent against the dollar and the pound was down 0.21 percent against the American currency. The dollar gained 0.52 percent against the yen and 0.26 percent against the Australian dollar.
Notable earnings released on Monday included:
- Sotheby’s (NYSE: BID) reported a third quarter loss of $0.44, compared to last year’s loss of $0.48 on revenue of $68.46 million.
- Rackspace Hosting, Inc (NYSE: RAX) reported Q3 EPS of $0.11 which may not compare to the estimated $0.16. Revenue came in at $388.60M which may not compare to the estimated $387.47M.
- Hologic, Inc. (NASDAQ: HOLX) reported Q4 EPS of $0.39 versus the estimated $0.37, beating by $0.02. EPS were Up 5% from the same quarter last year.
Stocks moving in the Premarket included:
- Carnival Corp (NYSE: CCL) lost 1.11 percent in premarket trade after falling 5.25 percent over the past five days.
- Cablevision Systems Corp (NYSE: CVC) lost 3.78 percent in premarket trade after gaining 2.56 percent over the past five days.
Earnings reports expected on Tuesday include:
- D.R. Horton, Inc. (NYSE: DHI) is expected to report fourth quarter EPS of $0.40 on revenue of $1.79 billion, compared to last year’s EPS of $0.30 on revenue of $1.30 billion.
- YRC Worldwide, Inc. (NASDAQ: YRCW) is expected to report a third quarter loss of $0.46 on revenue of $1.26 billion, compared to last year’s loss of $4.30 on revenue of $1.24 billion.
- DISH Network Corporation (NASDAQ: DISH) is expected to report third quarter ESP of $0.43 on revenue of $3.58 billion, compared to last year’s loss of $0.35 on revenue of $3.52 billion.
On Tuesday’s economic calendar will be packed with CPI data including reports from Germany, Italy, and the UK.
For a recap of Tuesday’s market action click here
Tune into Benzinga’s pre-market info show with Dennis Dick and Joel Elconin here.
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