With Republicans in full control of the U.S. Congress, the stage is set for a very rocky two years as Democratic President Barack Obama finishes his final term in office.
Speaker of the House John Boehner said Thursday that he plans to put Obamacare up to another vote and that although Obama will surely veto its repeal, Republicans in Congress will have the opportunity to cut out certain parts.
Boehner’s first public address since the vote, which shifted the balance of power in Congress, set a worrisome tone for the next two years and suggested that the Obama administration is likely to face challenges in trying to accomplish anything not on the Republican agenda.
Boehner also warned that his party would be unwilling to consider any type of immigration reform if Obama acts unilaterally by using his executive powers. Earlier in the year, Obama promised to help the millions of undocumented immigrants who have been living in the U.S. and raising their families here by making it possible for them to get a job without worrying about being deported.
His pledge suggests that he is planning to use his executive authority in order to make a change without the approval of Congress, something Boehner has said he won’t stand for.
In news around the markets:
Home Depot Reveals Extent Of Breached Data
The Home Depot, Inc. HD revealed that the hacking attacks it suffered in September may have been worse than initially believed. The company said that in addition to the 56 million payment cards that were exposed, the hackers had access to a database of around 53 million email addresses. Home Depot representatives have said that no password or other personal information was included with the emails and confirmed that the security breach would end up costing the company around $62 million.
PepsiCo Executive Surprises With Retirement Announcement
PepsiCo, Inc. PEP lost one of its most valuable management team members on Thursday when Zein Abdalla notified the company of his planned retirement. Abdalla’s departure from PepsiCo, effective on December 31, was unexpected by those inside and outside of the company as he was considered as a front runner for CEO once the company’s current leader, Indra Nooyi, steps down.
OPEC Likely To Take Action If Oil Continues To Decline
With OPEC’s planned annual meeting set to take place November 27, the cartel’s members arranged an informal meeting on Thursday to discuss the possibility of a supply cut. While most of the group needs prices above $100 in order to balance their budgets, several member nations have expressed their willingness to accept low prices in order to gain market share. However, following Thursday’s meeting, The Wall Street Journal reported that an OPEC official revealed that a supply cut was imminent if prices fall to $70 per barrel.
ECB Could Still Introduce Quantitative Easing
The European Central Bank’s policy meeting ended with President Mario Draghi assuring investors that the bank was ready to act if need be. Despite rumors that the governing council was at odds over whether or not more easing was necessary, Draghi said the group was in agreement that it would deliver more stimulus when the time comes. Draghi also implied that more quantitative easing was on its way as he said the bank plans to expand its balance sheet to match the levels seen in March 2012, when the region’s financial crisis was well underway. The bank’s current bond-purchase program would be unable to increase the bank’s financials to such a level, sparking speculation that more easing is on its way in December.
Asian Markets
Asian markets were mostly lower with the exception of the NIKKEI, which gained 0.52 percent, and the KOSPI, which rose 0.17 percent. The Shanghai composite fell 0.28 percent, the Shenzhen composite was down 0.70 percent and the Hang Seng index fell 0.42 percent.
European Markets
European markets were mostly higher with the exception of France’s CAC 40, which lost 0.09 percent, and Italy’s MIB, which fell 0.38 percent. The STOXX 600 gained 0.16 percent, the FTSE was up 0.70 percent and the DAX rose 0.25 percent.
Energy futures were mixed; Brent futures were down 0.31 percent and WTI futures gained 0.03 percent. Gold and silver were both up 0.05 percent, and industrial metals were also higher. Copper gained 0.20 percent, aluminum was up 0.78 percent, zinc rose 0.29 percent and tin was up 1.65 percent.
The euro was lower against the dollar on Friday, down 0.23 percent, but gained 0.22 percent against the pound and 0.21 percent against the yen. The dollar was down 0.03 percent against the yen, 0.02 percent against the pound and 0.50 percent against the Australian dollar.
Earnings
Notable reports released on Thursday included:
- Walt Disney Co DIS reported fourth quarter EPS of $0.89 on revenue of $12.39 billion, compared to last year’s EPS of $0.77 on revenue of $11.57 billion.
- AstraZeneca plc AZN reported third quarter EPS of $1.05 on revenue of $6.54 billion, compared to last year’s EPS of $1.22 on revenue of $6.25 billion.
- Apache Corporation APA reported third quarter EPS of $1.38 on revenue of $3.74 billion, compared to last year’s EPS of $2.32 on revenue of $4.41 billion.
- DIRECTV DTV reported quarter EPS of $1.33 on revenue of $8.37 billion, compared to last year’s EPS of $1.28 on revenue of $7.88 billion.
Stocks moving in the #PreMarket included:
- Alcoa Inc AA was up 5.01 percent in premarket trade after gaining 0.92 percent over the past five days.
- First Solar, Inc. FSLR was down 3.12 percent in premarket trade after rising 0.27 percent on Thursday.
- Walt Disney Co DIS fell 1.74 percent in premarket trade after gaining 1.10 percent on Thursday.
- Bank of America Corp BAC was down 0.63 percent in premarket trade after rising 1.94 percent over the past five days.
Notable releases expected on Friday include:
- Humana Inc HUM is expected to report third quarter EPS of $2.00 on revenue of $12.34 billion, compared to last year’s EPS of $2.31 on revenue of $10.32 billion.
- Brookfield Asset Management Inc. BAM is expected to report third quarter EPS of $0.33 on revenue of $4.54 billion, compared to last year’s EPS of $0.45 on revenue of $5.18 billion.
- Buckeye Partners, L.P. BPL is expected to report third quarter EPS of $0.88 on revenue of $1.41 billion, compared to last year’s EPS of $0.72 on revenue of $1.09 billion.
- E.W. Scripps Co SSP is expected to report third quarter EPS of $0.06 on revenue of $217.05 million, compared to last year’s loss of $0.16 on revenue of $189.54 million.
Economics
U.S. non-farm payrolls data will be the highlight of Friday’s economic calendars as investors look for a better picture of the nation’s labor market. Other notable releases will include trade balance data from the U.K., Germany and France, U.S. consumer credit, and the U.S. unemployment rate.
For a recap of Thursday’s market action, click here.
Tune in to Benzinga’s #PreMarket info show with Sonny Singh, Brendan Ross & Chris Ciaccia here.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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