#PreMarket Primer: Thursday, November 7: Twitter's IPO Shaping Up To Be A Big One
Twitter’s IPO will be in the spotlight today as the company’s share prices climb. The company has raised the upper end of its price range from $20 to $26 over the past week. Twitter will offer 70 billion shares, which makes this the largest US technology IPO since Facebook debuted last year.
In other news around the markets:
- Talks between Western leaders and Iran at which the two sides will discuss Iran’s disputed nuclear program will kick off today in Geneva. The ongoing standoff has resulted in sanctions which have kept much of Iran’s oil from the market, but this week’s talks could put an end to that. Iranian officials claim the talks could produce the framework for a deal in just a week.
- US GDP data is expected to show that the nation was unable to maintain its budding recovery in the third quarter. The Commerce Department is expected to release a first estimate of the US’ third quarter GDP which many believe will confirm a slowdown. A lack of consumer spending is likely to be the cause of the slowdown as it is expected to have expanded at its slowest rate in more than two years.
- As global PC sales declined, Lenovo Group extended its reach to smartphones and data servers in order to offset losses. The company announced that its net profit jumped 36 percent from July to September, much higher than expected.
- The European Central Bank is set to meet on Thursday amid calls for the bank to cut its interest rate to fight the region’s sinking inflation. Although some ECB members voted to cut rates in October, the bank is expected to maintain its current rate and wait for more data to confirm whether or not the region’s decline in inflation will be sustained.
Asian markets were down across the board, the Japanese NIKKEI was down 0.76 percent, China’s Shanghai composite lost 0.48 percent and the Shenzhen composite was down 1.14 percent. The Hang Seng index lost 0.68 percent and the South Korean KOSPI fell 0.48 percent.
European markets opened mildly lower, the UK’s FTSE lost 0.19 percent and the eurozone’s STOXX 600 fell 0.17 percent. France’s CAC 40 was down 0.12 percent and the Spanish IBEX was down 0.50 percent.
Energy futures lost ground on Thursday, Brent futures were down 0.75 percent and WTI futures were down 0.13 percent. Gold lost 0.20 percent but silver was up 0.03 percent. Industrial metals were mixed with aluminum up 0.22 percent and tin down 0.74 percent.
Ahead of the ECB meeting, the euro was steady at $1.35. The pound to dollar ratio was little changed with the dollar gaining 0.04 percent on the sterling. The Yen lost 0.06 percent against the dollar and weak Australian jobs data pushed the Australian dollar 0.34 percent lower against the greenback.
Notable earnings released on Wednesday included:
- Humana Inc. (NYSE: HUM) reported EPS of $2.31, compared to last year’s EPS of $2.62 per share on revenue of $9.65 billion.
- Duke Energy Corporation (NYSE: DUK) reported EPS of $1.46 on revenue of $6.71 billion, compared to last year’s EPS of $1.47 on revenue of $6.72 billion.
- Time Warner Inc. (NYSE: TWX) reported third quarter EPS of $1.01 on revenue of $6.86 billion, compared to last year’s EPS of $0.86 on revenue of $6.84 billion.
- CenturyLink, Inc. (NYSE: CTL) reported third quarter EPS of $0.63 on revenue of $4.52 billion, compared to last year’s EPS of $0.66 on revenue of $4.57 billion.
Stocks moving in the Premarket included:
- Transocean LTD (NYSE: RIG) gained 2.98 percent in premarket trade after gaining 3.68 percent over the past five days.
- Carnival Corp (NYSE: CCL) lost 0.88 percent in premarket trade after climbing 2.63 percent on Wednesday
- American International Group, Inc.(NYSE: AIG) lost 0.65 percent in premarket trade after falling 8.43 percent over the past week.
- Procter & Gamble Co (NYSE: PG) lost 0.24 percent in premarket trade after jumping 1.69 percent on Wednesday.
Earnings reports expected on Thursday include:
- Priceline.com Incorporated (NASDAQ: PCLN) is expected to report EPS of $16.21 on revenue of $2.21 billion, compared to last year’s EPS of $12.40 per share on revenue of $1.71 billion.
- Groupon, Inc. (NASDAQ: GRPN) is expected to report EPS of $0.01 on revenue of $616.13 million, compared to last year’s EPS of $0.03 on revenue of $568.55 million.
- Cablevision Systems Corporation (NYSE: CVC) is expected to report third quarter EPS of $0.11 on revenue of $1.57 billion, compared to last year’s loss of $0.01 on revenue of $1.69 billion.
- Health Net Inc. (NYSE: HNT) is expected to report third quarter EPS of $0.60 on revenue of $2.72 billion, compared to last year’s EPS of $0.38 on revenue of $2.78 billion.
Thursday will be a busy day for economic data with several anticipated releases including the Bank of England’s interest rate decision, the European Central Bank’s interest rate decision, German industrial production, US GDP, US initial and continuing jobless claims, and US consumer credit.
Tune into Benzinga’s pre-market info show with Dennis Dick and Joel Elconin here.
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