Stocks that are expected to trade actively in U.S. markets on Monday include: Costco Wholesale Corporation (NASDAQ:COST), Family Dollar Stores, Inc. (NYSE:FDO), Chevron Corporation (NYSE:CVX), Alcoa Inc (NYSE:AA), The Wendy’s Co (NASDAQ:WEN), Wolverine World Wide, Inc. (NYSE:WWW).
U.S.: DJIA 14,776 (-1.07%), S&P 500 1,655.45 (-1.23%), NASDAQ 3,694.83 (-2.00%).
Europe: FTSE 6,361 (-0.07%), DAX 8,568.11 (0.15%), CAC 40 4,153.82 (0.50%).
Asia Pacific: NIKKEI 14037.84 (1.03%), SHANGHAI 2,211.77 (0.62%), HSI 23,033.97 (-0.62%), ASX 200 5,152.99 (0.07%), KOSPI 2002.76 (0%).
Commodities: Oil 103.47 (-0.02%), NAT GAS 3.73 (0.38%), Gold 1311.00 (-01.02%), Silver 22.145 (-1.33%), Wheat 691.25, (0.32%), Corn 442.50 (0.17%).
Currency: EUR/USD 1.3522 (-0.35%), USD/JPY 97.33 (0.49%), GBP/USD 1.5981 (-0.65%).
10-year US Treasury: 2.625 (0%).
Market and Economic Update
U.S. markets to have stable opening: U.S. S&P 500 E-mini futures surged 0.3 percent in early Asian trade on Wednesday following the news that Barack Obama is inclined towards nominating Chairwoman Janet Yellen to be the next head of the U.S. central Bank. A rise in the S&P E-mini futures indicated a stable start for the United States stocks on Wednesday. SPX was down 1.2 percent on Tuesday as some mini steps were being taken to end the political backbiting in Washington that could result in the U.S debt default.
European markets stable: Shares on the European stock exchange were stable after reaching one month lows, attracting buyers as investors are expecting the United States fiscal deadlock to continue even after the appointment of new Federal Reserve head. The FTSEurofirst 300 index was flat at 1,231.24 points by 0949 GMT, rebounded from one month low of 1,226.80 and taking heart from U.S. futures pointing to a higher open on Wall Street.
Asian markets recovering: Nikkei stocks rebounded from a five week low and recorded 1 percent growth on Wednesday fueled by the news that President Barack Obama is looking forward to make Federal Reserve vice Chair Janet Yellen as the head the U.S. central bank. Market became stable after the news and increased the risk appetite, weakening the yen against the dollar. Hong Kong stocks dropped on Wednesday led by Tencent Holdings as investors started reaping profits from the burgeoning technology sector. The Hang Seng Index dropped 0.6 percent at 23,034 points.
Stocks in News
Costco Wholesale Corporation (NASDAQ:COST)
Costco is expected to post its fourth quarter earnings of $1.46 per share according to average analyst estimates by Thomson Reuters. Analysts said that they are expecting the company to perform in line with expectations, and the stock will have limited volatility based on both stock options and recent history. Bob Summers, an analyst at Susquehanna, said in a note that investors will be interested in knowing the gross margin performance and membership fee income growth.
Family Dollar Stores, Inc. (NYSE:FDO)
Family Dollar Stores is projected to post earnings of 84 cents per share for the fourth quarter. Gross margin may be lower than expected due to clearing of carryover seasonal merchandise, according to FBR analyst Dutch Fox.
Chevron Corporation (NYSE:CVX)
Chevron will post its update for the mid-quarter on its production and refining business for the third quarter.
Alcoa Inc (NYSE:AA)
Alcoa posted third quarter profit of $24 million or 2 cents per share compared to loss of $142 million, or 13 cents per share in the previous year. Revenue came down to $5.77 billion from $5.83 billion above analysts’ expectations of 5 cents per share and revenue of $5.63 billion.
The Wendy’s Co (NASDAQ:WEN)
Wendy’s revealed an agreement with long-time franchisee Cedar Enterprises Inc to sell all of the fast-food chain’s company-owned stores in the Seattle market. The transaction is part of a restructuring plan announced earlier this year to offload some 425 company-operated restaurants to franchisees.
Wolverine World Wide, Inc. (NYSE:WWW)
Wolverine World Wide third quarter earnings came in better than expected, increasing by 66 percent. The maker of Hush Puppies and Merrell shoes expects improved performance after the acquisition of Collective Brands’ operations last year. The company raised its earnings forecast for the year, but still it was in line with the Street’s view.