Market Overview

#PreMarket Primer for December 13: Budget Wars Nearing An End

#PreMarket Primer for December 13: Budget Wars Nearing An End

The US government's bipartisan budget deal easily passed a vote in the US House of Representatives on Thursday, upping the possibility that the US Federal Reserve will begin tapering its $85 billion per month stimulus package.

The budget deal will be sent to the Senate, where it is expected to pass another vote next week. With a new budget deal in place, the Federal reserve will be relieved of fiscal concerns which have been keeping the bank from tapering.

The agreement would keep the US free from budget wars for the next two years.

Top News

  • UN investigators confirmed that chemical weapons were probably used in five out of seven of the investigated attacks in Syria. The final inquiry report, published on Thursday, said that sarin was used in at least four incidents, once on a large scale. The report also showed that victims ranged from government soldiers to civilians, but it was difficult to establish a link between victims and alleged attack sites.
  • As Ukrainian protestors rebuilt barricades torn down by police in the country's Independence Square, the nation's first deputy Prime Minister Serhiy Arbuzof traveled to Brussels to discuss signing a trade agreement with EU leaders. The EU has agreed to provide more aid to Ukraine if the nation agrees to sign, to which Arbuzof said he was planning sign soon, although he did not provide a date.
  • French auto maker PSA Peugeot Citroen was under pressure this week after General Motors announced that it planned to sell its entire 7 percent stake in the company. General Motors decision has made it crucial that Peugeot secure an investment from a Chinese partner. The company has been negotiating a potential equity investment with Dongfeng Motor Co., but no deal has been made yet.
  • Spain's Catalonia region has set a date for a succession vote against the wishes of Prime Minister Mariano Rajoy. Catalan leader Artur Mas announced on Thursday that a question about Catalonia's independence would be included on the region's November 2014 ballot.

Asian Markets

Asian markets were mixed, the Japanese NIKKEI gained 0.40 percent and Australia's ASX 200 was up 0.71 percent. However the Shanghai composite lost 0.31 percent and the South Korean KOSPI lost 0.26 percent.

European Markets

European markets were moderately higher with the exception of the UK's FTSE, which lost 0.11 percent. The eurozone's STOXX 600 gained 0.04 percent, the German DAX was up 0.11 percent and the Spanish IBEX rose 0.25 percent.


Energy futures were quiet, Brent futures gained 0.03 percent and WTI futures lost 0.07 percent. Gold lost 0.08 percent and silver was down 0.63 percent. Industrial metals were mostly lower with copper down 0.20 percent and aluminum down 1.43 percent.


Currency markets were quiet to finish the week, the euro gained 0.07 percent against the dollar and the pound lost 0.04 percent against the American currency. The dollar gained 0.21 percent against the yen and lost 0.08 percent against the Australian dollar.


Notable earnings released on Thursday included:

  • lululemon athletica in. (NASDAQ: LULU) reported third quarter EPS of $0.45 on revenue of $379.90 million, compared to last year's EPS of $0.39 on revenue of $316.54 million.
  • Adobe Systems Incorporated (NASDAQ: ADBE) reported third quarter EPS of $0.32 on revenue of $1.04 billion, compared to last year's EPS of $0.61 on revenue of $1.15 billion.
  • CIENA Corporation (NASDAQ: CIEN) reported fourth quarter EPS of $0.16 on revenue of $583.40 million, compared to last year's loss of $0.07 on revenue of $465.53 million.

Pre-Market Movers

Stocks moving in the Premarket included:

  • Exxon Mobile Corp (NYSE: XOM) gained 0.66 percent in premarket trade after rising 1.17 percent on Thursday
  • General Electric (NYSE: GE) lost 0.08 percent in premarket trade after gaining 0.34 percent over the past week


No notable earnings expected on Friday


Notable economic releases on Friday include US PPI, eurozone employment change data, Swiss PPI, and Spanish CPI

For a recap of Thursday's market action, click here.

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


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