Market Overview

#PreMarket Primer: Monday, November 25: Iran Deal Reached

#PreMarket Primer: Monday, November 25: Iran Deal Reached

World leaders and Iranian officials came to an agreement over the weekend regarding Iran's nuclear program.

The deal will relieve Iran from some of the sanctions that have put pressure on its economy in exchange for the nation's willingness to curb its nuclear development. Although the deal is only a temporary fix, set to last just six months, many are heralding it as a massive step towards a lasting treaty in a decade long standoff between the two sides. Oil prices tumbled following the news even though the deal will not ease sanctions on Iranian oil just yet.

Top News

In other news around the markets:

  • Prominent fund managers expressed their worries at the Reuters 2014 Global Investment Outlook Summit, saying that the market's recent record setting highs are likely to crumble. Investors are concerned that the Fed's stimulus taper in 2014 could bring equities down from their 2013 highs. Carl Icahn has said earnings in 2013 have largely been a product of easy money rather than actual profitability, and the Fed's taper will likely readjust markets.

  • Chrysler Group LLC is working to complete an IPO by mid-December and could set a price range as early as this week. The company's two owners are trying to strike a deal that will allow majority owner, Fiat, to take full control before the IPO takes place.

  • Over the weekend, ECB executive board member Benoit Coeure said that Europe's central bank was planning to keep rates low for the foreseeable future and that the bank is prepared to ease further if inflation data continues to decline. Inflation in the 17 nation bloc has fallen to 0.7 percent, well below the bank's 2 percent target, and caused many to worry that the region could slip into a period of deflation.

  • Apple paid about $350 million to acquire PrimeSense, an Israeli start-up that specializes in motion sensitive technology. The purchase indicates that the company is moving toward new, more interactive, features for it's devices.

Asian Markets

Asian markets were mixed to begin the week, the Japanese NIKKEI was up 1.54 percent but China's Shanghai composite was down 0.47 percent. The South Korean KOSPI was up 0.49 percent and Australia's ASX 200 was up 0.32 percent.

European Markets

Europe's markets were quiet on Monday, the UK's FTSE was down 0.11 percent and the eurozone's STOXX 600 was flat. Italy's MIB lost 0.10 percent, and the German DAX was unchanged.


Energy futures were under pressure with the new Iran deal, Brent futures were down 2.45 percent and WTI futures lost 1.61 percent. Gold lost 1.03 percent and silver slid 1.11 percent. Industrial metals were mixed with copper down 0.25 percent and Zinc up 1.06 percent.


The euro was steady at $1.35 and the pound fell 0.05 percent against the greenback. The dollar gained 0.49 percent against the yen and 0.45 percent against the Australian dollar.


No notable earnings were released on Friday.

Pre-Market Movers

Stocks moving in the Premarket included:

  • Alcoa Inc (NYSE: AA) gained 2.27 percent in premarket trade after rising 2.33 percent last week.

  • Delta Airlines Inc. (NYSE: DAL) rose 1.64 percent in premarket trade after increasing 2.00 percent on Friday

  • Omnicom Group Inc (NYSE: OMC) gained 1.20 percent in premarket trade after rising 2.56 percent last week.

  • Carnival Corp (NYSE: CCL) rose 1.19 percent in premarket trade after gaining 0.67 percent on Friday

  • Newmont Mining Corp (NYSE: NEM) fell 0.70 percent in premarket trade after falling 7.38 percent over the past five days


Notable earnings expected on Monday include:

  • Nuance Communications (NASDAQ: NUAN) is expected to report fourth quarter EPS of $0.29 on revenue of $489.56 million, compared to last year’s EPS of $0.51 on revenue of $490.09 million.

  • Qihoo 360 Technology Co. Ltd. (NYSE: QIHU) is expected to report third quarter EPS of $0.37 on revenue of $181.51 million, compared to last year’s EPS of $0.20 on revenue of $84.04 million.


Monday's economic calendar will be relatively quiet. Notable releases expected include US pending home sales, the Italian trade balance and the French business survey.

For a recap of Friday’s market action click here.

Tune into Benzinga’s pre-market info show with Dennis Dick and Joel Elconin here.


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