Credit Suisse pleaded guilty in its criminal tax case on Monday and admitted its part in helping wealthy clients evade taxes.
The firm will pay $2.6 billion worth of fines for failing to comply with tax laws by helping its customers open offshore accounts and destroying account records that were meant to be sent to the IRS.
The plea marks the first time in more than ten years that a financial institution has plead guilt guilty to a crime.
In other news around the markets:
- Tension between the US and China reached a new high on Monday when the US Justice Department indicted five Chinese military officers for their participation in a hacking scandal. The officers allegedly hacked US companies’ computer networks and stole trade secrets. The companies affected included US Steel Corp, Westinghouse Electric Co. and Alcoa Inc.
- After Allergan Inc. rejected a $47 billion takeover bid from Valeant Pharmaceuticals International in April, Valeant offered to sweeten the deal with a better offer on May 28. Allergan’s chief executive has fought to allow the company to stand on its own; but some, including activist investor William Ackman, are saying that Allergan CEO David Pyott has a conflict of interest as he would lose his job if the company were taken over.
- Although AT&T and DirecTV both announced that their boards had approved a takeover deal on Sunday, a regulatory filing on Monday showed that AT&T can pull the plug on the acquisition if DirecTV is unable to secure a deal with the NFL to offer the Sunday Ticket football package. DirecTV CEO Mike White said on Monday that he was “highly confident” that he would strike a deal with the NFL within the year.
- Thailand’s army chief, General Prayuth Chan-ocha, appeared on television early on Tuesday and declared that martial law was necessary across the Asian nation as violent conflict continued to spread. The army is planning to censor inflammatory media and has suspended the broadcast of 10 channels operated by both pro and anti-government groups.
Asian markets were mixed/ the Japanese NIKKEI gained 0.49 percent, the Shanghai composite was up 0.15 percent and the Hang Seng composite was up 0.57. However, the KOSPI was down 0.19 percent and New Zealand’s NZ50 lost 0.64 percent.
European Markets
European markets were down across the board as the region received lackluster economic data. The UK’s FTSE lost 0.48 percent, the eurozone’s STOXX 600 was down 0.09 percent, France’s CAC 40 lost 0.45 percent, Italy’s MIB was down 0.18 percent and the German DAX fell 0.21 percent.
Problems in Libya kept energy futures higher; Brent futures were up 0.24 percent and WTI futures gained 0.11 percent. Gold and silver were down 0.19 percent and 0.07 percent respectively, while industrial metals gained. Tin was up 1.06 percent, zinc gained 1.21 percent and aluminum was up 0.25 percent.
The dollar lost some ground on Tuesday and fell 0.17 percent against the yen and 0.68 percent against the Australian dollar. The euro was also lower at $1.3684. The common currency lost 0.37 percent against the yen and 0.28 percent against the pound.
Earnings
Notable earnings released on Monday included:
- Campbell Soup Company CPB reported third quarter EPS of $0.62 on revenue of $1.97 billion, compared to last year’s EPS of $0.62 on revenue of $2.09 billion.
- Valspar Corporation VAL reported second quarter EPS of $1.07 on revenue of $1.13 billion, compared to last year’s EPS of $0.91 on revenue of $1.03 billion.
- Urban Outfitters URBN reported first quarter EPS of $0.26 on revenue of $686.00 million, compared to last year’s EPS of $0.32 on revenue of $648.18 million.
Stocks moving in the Premarket included:
- Carnival Corp CCL was up 3.35 percent in premarket trade after rising 1.57 percent on Monday.
- Salesforce.com CRM gained 0.83 percent in premarket trade after rising 2.76 percent on Monday.
- Berkshire Hathaway BRKB rose 0.29 percent in premarket trade after gaining 0.21 percent on Monday.
- International Business Machines IBM fell 0.80 percent in premarket trade after losing 2.89 percent over the past week.
Notable earnings releases expected on Tuesday include:
- Home Depot HD is expected to report first quarter EPS of $1.01 on revenue of $20.15 billion, compared to last year’s EPS of $0.83 on revenue of $19.12 billion.
- Staples SPLS is expected to report first quarter EPS of $0.21 on revenue of $5.62 billion, compared to last year’s EPS of $0.26 on revenue of $5.81 billion.
- Salesforce.com CRM is expected to report first quarter EPS of $0.10 on revenue of $1.21 billion, compared to last year’s EPS of $0.10 on revenue of $982.63 million.
- Medtronic MDT is expected to report fourth quarter EPS of $1.12 on revenue of $4.58 billion, compared to last year’s EPS of $1.10 on revenue of $4.46 billion.
Economics
European data will dominate Tuesday’s economic calendar with releases including British PPI, British CPI, Italian industrial sales and German PPI.
For a recap of Monday’s market action, click here.
Tune into Benzinga’s #PreMarket Prep show with Dennis Dick and Joel Elconin here.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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