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#PreMarket Primer: Tuesday, December 17: US Markets Rebound Overnight

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#PreMarket Primer: Tuesday, December 17: US Markets Rebound Overnight

Optimism seemingly returned to the markets despite recent losses due to Fed taper speculation.

US stocks rose on Monday after posting massive losses last week. Manufacturing output in the US increased for the fourth consecutive month, providing a solid economic backdrop for US markets.

The Federal Reserve is set to begin its two day policy meeting on Tuesday while markets scrutinize data for clues about the bank's taper timeline. Most analysts still expect the bank to hold off on a taper at this month's meeting, however some have begun to think that the Fed may hint at a January taper.

Top News

In other news around the markets:

  • Nasdaq OMX Group Inc's motion to dismiss the lawsuits filed by investors who claim the exchange mismanaged Facebook's IPO were denied on Monday. Nasdaq will still have to answer for what investors say are poorly designed and inadequately tested systems, which many say caused them to lose money.
  • Boeing announced a $10 billion buyback set to begin in 2014. The company's board also raised the stock's dividend by nearly 50 percent. Boeing's Chief Executive Jim McNerney said the decision reflects the company's current strength as well as anticipation of a bright future.
  • On Monday, Russia announced that it has been in talks with Ukraine about the possibility of a bailout loan and cheaper natural gas which would keep the nation's economy from collapsing. Ukrainian President Viktor Yanukovych and Russian President Vladimir Putin are set to meet on Tuesday, where many expect the two to cut several deals despite the ongoing protests in Ukraine.
  • The Reserve Bank of Australia’s December meeting minutes were released with few surprises. The bank expects to see mining investment decline further over the next few years and has not shut the door on the possibility of further easing. RBA members stressed that the Australian dollar has been hat uncomfortably high levels recently, and that the currency will need to drop in order to ensure balanced growth.

Asian Markets

Asian markets were mixed on Tuesday, the Japanese NIKKEI rose 0.83 percent, but China's Shanghai composite fell 0.45 percent. The Shenzhen composite was also lower, down 0.70 percent, but the South Korean KOSPI gained 0.23 percent.

European Markets

Europe's markets were up across the board, the UK's FTSE gained 1.28 percent and the eurozone's STOXX 600 was up 1.95 percent. The Spanish IBEX rose 1.69 percent and France's CAC 40 gained 1.48 percent.

Commodities

Energy futures were lower, Brent futures were down 0.13 percent and WTI futures lost 0.18 percent. Gold gained 0.10 percent, but silver lost 0.05 percent. Industrial metals were mixed with zinc up 0.71 percent and aluminum down 0.31 percent.

Currencies

Currency markets were quiet, the euro and the pound both gained 0.15 percent on the dollar. The greenback lost 0.04 percent against the yen and gained 0.09 percent against the Australian dollar.

Earnings

No notable earnings released on Monday

Pre-Market Movers

Stocks moving in the Premarket included:

  • General Electric Co (NYSE: GE) gained 0.22 percent after gaining 0.52 percent on Monday.
  • Citigroup Inc. (NYSE: C) lost 0.37 percent in premarket trade after falling 2.32 percent over the past week.
  • Perrigo Co (NYSE: PRGO) fell 0.23 percent in premarket trade after losing 2.25 percent over the past five days
  • Carnival Corp (NYSE: CCL) lost 0.11 percent in premarket trade after climbing 1.33 percent on Monday

Earnings

Notable earnings reports expected on Tuesday include:

  • Jabil Circuit, Inc. (NYSE: JBL) is expected to report first quarter EPS of $0.55 on revenue of $4.49 billion, compared to last year’s EPS of $0.61 on revenue of $4.64 billion.
  • Verifone Systems, Inc. (NYSE: PAY) is expected to report fourth quarter EPS of $0.26 on revenue of $421.36 million, compared to last year’s EPS of $0.76 on revenue of $488.56 million.

Economics

Tuesday’s economic calendar will be dominated by US data, which will be scrutinized for clues about the Fed’s taper plans. Notable releases include US API crude stockpile data, US CPI, eurozone CPI, Germany’s ZEW economic sentiment survey, and Canadian manufacturing sales.

For a recap of Monday’s market action click here

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

Posted-In: Earnings News Eurozone Futures Forex Global Economics Federal Reserve Best of Benzinga

 

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