With several large retail chains planning to begin their Black Friday deals on Thanksgiving, some retailers are holding firm and refusing to participate even if it means losing some of their sales. Although the stores could loose valuable sales as many shoppers are planning to head out on Thursday to pick up large ticket items like gaming consoles and TVs, their strategy includes an emotional “save Thanksgiving” message which could win them customers. The National Retail Federation has estimated that 33 million people will spend money on Thanksgiving, whether it be in stores or online.
- Two US B-53 planes flew into China's newly declared air zone without announcing themselves on Tuesday. The US and Japan have opposed China's “air defense identification zone” as it includes disputed islands controlled by Japan as well as overlapping with Japan's air zone. China's decision could upset international relationships and escalate regional tension.
- Early on Wednesday morning, German Chancellor Angela Merkel struck a deal with the Social Democratic Party in order to form a governing coalition. The deal puts Germany one step closer to having a stable government in place by the Christmas holiday. The agreement will have to jump through one final hoop; it will be put to a vote in which the 470,000 SPD members will approve or deny the coalition's terms.
- The Nasdaq rose 23.18 points on Tuesday to close above 4000 for the first time in 13 years. The index is up 33 percent for the year and has been fueled by the Fed's stimulus spending and investors' appetite for rapidly expanding companies.
- China is looking to make its market more accessible to foreign investors in its latest plans to completely overhaul the nation's economic and social standing. The Ministry of Commerce will lift the restrictions on foreign investment in several sectors as well as change unifying laws and regulations in order to make investment policy easier to understand.
Asian markets were mixed again on Wednesday, the Japanese NIKKEI was down 0.42 percent and Australia's ASX 200 lost 0.45 percent. However China's Shanghai composite gained 0.82 percent and the Shenzhen composite rose 1.12 percent.
European Markets
European markets began the day on a low note, the UK's FTSE lost 0.87 percent and Italy's MIB was down 0.05 percent. The eurozone's STOXX 600 fell 0.33 percent and France's CAC 40 lost 0.57 percent.
Energy futures were mixed, Brent futures were up 0.03 percent and WTI futures lost 0.23 percent. Gold gained 0.30 percent and silver was up 0.31 percent. Industrial metals were down across the board with zinc falling the furthest, down 0.89 percent.
Currency markets were quiet, the euro was steady at $1.35 and the pound was up 0.02 percent on the greenback. The dollar gained 0.35 percent on the yen and 0.12 percent against the Australian dollar.
Earnings
Notable earnings released on Tuesday:
- Hewlett-Packard Company HPQ reported fourth quarter EPS of $1.10 on revenue of $29.10 billion, compared to last year’s EPS of $1.16 on revenue of $29.96 billion.
- Hormel Foods Corporation HRL reported fourth quarter EPS of $0.58 on revenue of $2.30 billion, compared to last year’s EPS of $0.49 on revenue of $2.17 billion.
- Tiffany & Co. TIF reported third quarter EPS of $0.73 on revenue of $911.50 million, compared to last year’s EPS of $0.49 on revenue of $852.74 million.
- TiVo Inc. TIVO reported third quarter EPS of $0.10 on revenue of $117.30 million, compared to last year’s EPS of $0.44 on revenue of $60.96 million.
Stocks moving in the Premarket included:
- Hewlett-Packard Co HPQ gained 7.17 percent in premarket trade after falling 0.91 percent on Tuesday.
- United States Steel Corp X rose 0.38 percent in premarket trade after falling 3.03 percent over the past week
- Ford Motor Co F was up 0.12 percent in premarket trade after losing 0.41 percent on Tuesday
- Intel Corp INTC was down 0.47 percent in premarket trade following a 4.25 percent loss over the past five days
No notable earnings expected on Wednesday
Economics
Notable economic releases on Wednesday include British GDP, Spanish retail sales, US durable goods orders, US housing starts, US new home sales and US consumer sentiment.
For a recap of Tuesday’s market action click here
<p>Tune into Benzinga’s pre-market info show with Dennis Dick and Joel Elconin <a> http://optionshouse.benzinga.com/pre-market-show/ />here</a>.</p>
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