#PreMarket Primer: Tuesday, November 19: Putin Optimistic About Iranian Deal
Negotiations between World powers and Iranian officials over Iran's nuclear program are on everyone's mind as they are set to resume on Wednesday. Russian President Vladimir Putin said there is a real chance for a deal to be reached when speaking to Iranian President Hassan Rouhani.
Optimism surrounding the talks has many expecting to see some sort of progress on the decade long standoff.
However, not all involved are optimistic. Israel has been strongly opposed to any type of deal and French leaders have said they will not agree to anything unless Iran can prove that its nuclear facilities are not part of a weapons development program.
In other news around the markets:
- Activist investor Carl Icahn spoke on Monday and drove the S&P 500 down 0.4 percent. Icahn said that many company's earnings are buoyed by low borrowing costs rather than profitability. In his opinion, share markets could be in for a large drop in the future.
On Monday, JP Morgan Chase & Co made an agreement with the Justice Department in order to end its ongoing legal battle for the landmark price of $13 billion. The Wall Street Journal reported that $4 billion of aid to distressed homeowners was agreed to on Monday as the last part of the deal. The company could make a public announcement as early as Tuesday.
Edward Snowden's leaked security documents are causing a rift between Australia and Indonesia as some of the documents indicated that Australian security forces attempted to tap the phones of several of Indonesia's high ranking officials. Australian Prime Minister Tony Abbott has been unapologetic about the matter, causing the relationship between the two neighbors to sour.
The Reserve Bank of Australia's meeting minutes showed that the bank was happy with the region's current progress, but has not shut off the possibility of easing further. The bank noted that recent economic figures show that the positive effects of past rate cuts are still trickling through the nation's economy, and that the impact of the bank's easing policies is expected to continue for some time.
Asian markets were mixed on Tuesday, the Japanese NIKKEI was down 0.25 percent and China's Shanghai composite lost 0.19 percent. However, the South Korean KOSPI was up 1.04 percent and Indonesia's JSX composite was up 0.11 percent.
European markets were down across the board, the UK's FTSE lost 0.54 percent and the eurozone's STOXX 600 fell 0.63 percent. France's CAC 40 and the Spanish IBEX were both down 1.05 percent and Italy's MIB lost 0.72 percent.
Energy futures lost ground on Tuesday, Brent futures were down 0.02 percent and WTI futures lost 0.23 percent. Precious metals were also lower with gold down 0.03 percent and silver down 0.18 percent. Industrial metals slipped as well with tin posting the largest losses, down 1.19 percent.
Currency markets were quiet, the pound slipped 0.27 percent against the dollar and the euro was lower by 0.04 percent. The dollar lost 0.10 percent to the yen and 0.46 to the Australian dollar.
Notable earnings released on Monday:
- Salesforce.com Inc (NYSE: CRM) reported third quarter EPS of $0.09 on revenue of $1.08 billion, compared to last year’s EPS of $0.08 on revenue of $788.40 million.
Tyson Foods Inc. (NYSE: TSN) reported fourth quarter EPS of $0.70 on revenue of $8.89 billion, compared to last year’s EPS of $0.55 on revenue of $8.37 billion.
Brocade Communication (NASDAQ: BRCD) reported fourth quarter EPS of $0.24 per share on revenue of $1.21 billion, compared to last year’s loss of $0.09 per share on revenue of $1.13 billion.
Stocks moving in the Premarket included:
- Southern Co (NYSE: SO) gained 0.47 percent in premarket trade after rising 2.00 percent over the past five days.
Perrigo Co (NYSE: PRGO) rose 0.47 percent in premarket trade after falling 0.55 percent on Monday.
EMC Corp (NYSE: EMC) gained 0.33 percent in premarket trade after a week of choppy trading.
Carnival Corp (NYSE: CCL) lost 1.23 percent in premarket trade after falling 1.19 percent over the past five days.
Notable earnings expected on Tuesday include:
- Home Depot, Inc (NYSE: HD) is expected to report third quarter EPS of $0.89 on revenue of $19.17 billion, compared to last year’s EPS of $0.88 on revenue of $18.13 billion.
Medtronic, Inc. (NYSE: MDT) is expected to report second quarter EPS of $0.90 on revenue of $4.18 billion, compared to last year’s EPS of $0.88 on revenue of $4.10 billion.
Campbell Soup Company (NYSE: CPB) is expected to report third quarter EPS of $0.87 on revenue of $2.29 billion, compared to last year’s EPS of $0.88 on revenue of $2.34 billion.
TJX Companies, Inc. (NYSE: TJX) is expected to report third quarter EPS of $0.74 on revenue of $6.91 billion, compared to last year’s EPS of $0.62 on revenue of $6.41 billion.
The highlight of Tuesday's economic calendar will be the release of the German ZEW economic sentiment survey. Other notable releases include Italian industrial sales and Norwegian GDP.
For a recap of Monday’s market action click here.
Tune into Benzinga’s pre-market info show with Dennis Dick and Joel Elconin here.
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