#PreMarket Primer: Monday, April 21: Fatal Gun Battle In Ukraine To Test Geneva Accord
The recent agreement between Ukraine and Russia to deescalate growing tension between the two nations will be put to the test just days after it was made.
On Sunday evening, a gun Battle in a pro-Russian separatist controlled Ukrainian city ended with at least three dead.
The city’s mayor has called on Russia to send in troops, and both sides have accused the other or provoking the fight.
In other news around the markets:
- Japanese Prime Minister Shinzo Abe angered South Korea and China on Monday when he sent an offering to the controversial Yasukuni Shrine. The shrine is seen as a symbol of past Japanese militarism. Tension between Japan and China was already simmering over the weekend after a Japanese ship was seized by a Chinese maritime court which said the company hadn’t paid compensation which dated back to a wartime contract.
- Several Chinese companies which were planning IPOs on the mainland are pulling back after the nation’s regulators released yet another set of regulations. Chinese regulation officials have published 16 different sets of guidelines within the last six months. The lack of clarity is causing concern among investors who are uncertain of what the new regulations will actually mean.
- Google, Apple, Intel and Adobe Systems are facing a class-action lawsuit brought by 64,000 employees who are seeking $3 billion in damages. The companies are accused of colluding to suppress wages between 2005 and 2009. Now, documents showing the company’s chief executives frequently spoke before recruiting have been released raising questions about who was involved and to what extent.
- According to The Wall Street Journal, Square Inc. is considering a possible sale to larger rivals like Google in an effort to cut growing losses. Many speculate that the mobile-payments startup had conversations with Apple and eBay as well, but no deal was ever reached.
Asian markets were mostly lower, the Shanghai composite lost 1.52 percent and the Shenzhen composite was down 1.46 percent. The Japanese NIKKEI was down 0.03 percent, the South Korean KOSPI fell 0.25 percent and the Hang Seng index declined 0.28 percent.
Europe’s markets were quiet with British, Italian, French and German markets all closed for Easter holidays.
Energy futures were lower; Brent futures lost 0.10 percent and WTI futures were down 0.39 percent. Precious metals were also on the decline with gold down 0.44 percent and silver down 1.03 percent. Industrial metals also fell with aluminum posting the largest losses, down 0.53 percent.
Currency markets were quiet, but the euro continued to creep upwards against the dollar reaching $1.3826. The euro gained 0.30 percent against the yen, but lost 0.06 percent against the pound. The dollar gained 0.13 percent against the yen but lost 0.10 percent against the franc.
Notable earnings released on Friday included:
- First Citizens Banc Corp (NASDAQ: FCZA) reported first quarter EPS of $0.22, compared to last year’s EPS of $0.21 on revenue of $13.11 million.
Stocks moving in the Premarket included:
- Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX) gained 1.48 percent in premarket trade after rising 0.51 percent on Thursday.
- Halliburton Co (NYSE: HAL) gained 1.00 percent in premarket trade after rising 5.16 percent over the past five days.
- Yum! Brands Inc. (NYSE: YUM) was down 0.55 percent in premarket trade after rising 1.53 percent last week.
Notable earnings releases expected on Monday include:
- Netflix, Inc. (NASDAQ: NFLX) is expected to report first quarter EPS of $0.83 on revenue of $1.27 billion, compared to last year’s EPS of $0.05 on revenue of $1.02 billion.
- Hasbro, Inc. (NASDAQ: HAS) is expected to report first quarter EPS of $0.10 on revenue of $689.97 million, compared to last year’s EPS of $0.05 on revenue of $663.69 million.
- Kimberly-Clark Corporation (NYSE: KMB) is expected to report first quarter EPS of $1.47 on revenue of $5.31 billion, compared to last year’s EPS of $1.48 on revenue of $5.32 billion.
- United Health Group Incorporated (NYSE: UNH) is expected to report first quarter EPS of $1.09 on revenue of $32.52 billion, compared to last year’s EPS of $1.16 on revenue of $30.34 billion.
Monday’s economic calendar will be thin as several world markets remain closed for the Easter holiday. Notable releases will include Taiwan’s unemployment rate, the US CB leading index and Australia’s CB leading index.
For a recap of Thursday’s market action, click here.
Tune into Benzinga’s #PreMarket Prep show with Dennis Dick and Joel Elconin here.
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