Stocks that are expected to trade actively in U.S. markets on Friday include: JPMorgan Chase & Co (NYSE:JPM), Wells Fargo & Co (NYSE:WFC), Safeway Inc. (NYSE:SWY), Micron Technology, Inc. (NASDAQ:MU) and The Gap Inc. (NYSE:GPS).
U.S.: DJIA 15126.07 (2.18%), S&P 500 1,692.56 (2.18%), NASDAQ 3,760.75 (2.26%).
Europe: FTSE 6,474.20 (0.68%), DAX 8,717.24 (0.36%), CAC 40 4,219.57 (0.03%).
Asia Pacific: NIKKEI 14404.74 (1.48%), SHANGHAI 2,228.15 (1.70%), HSI 23218.32 (1.16%), ASX 200 5,230.87 (1.63%), KOSPI 2024.90 (1.17%).
Commodities: Oil 101.72 (-1.28%), NAT GAS 3.76 (0.99%), Gold 1,286.40 (-0.81%), Silver 21.53 (-0.29%), Wheat 683.50 (-0.29%), Corn 434.00 (-0.97%).
Currency: EUR/USD 1.3576 (0.42%), GBP/USD 1.5975 (-0.01%), USD/JPY 98.36 (0.21%).
10 year Treasury bond: 2.692 (0%).
Market and economic update
U.S. markets witnessing strongest rally: On Thursday, the U.S. stock market witnessed one of its strongest rallies in more than nine months, backed by progress in negotiations to lift the government shutdown. At the close, S&P 500 was just 2 percent behind its record closing high set three weeks ago. However, more than two hours after the closing, equity futures contracts sank a bit owing to reports that President Obama rejected Republican suggestions related to the extension of the debt ceiling.
European market up: European stocks surged in early trading on Friday, continuing an upward spiral as investors are looking forward to an agreement in the Washington on the United States debt ceiling. At 0740 GMT, the FTSEurofirst 300 index of top European shares shot up 0.16 percent at 1,247.09 points, after gaining 1.7 percent on Thursday.
Asian markets also rising: Japan’s Nikkei was up 1.5 percent on Friday, recording its biggest one-day gain in three weeks fueled by the positive sentiments towards the United States fiscal standoff. Standard Index Nikkei climbed 210.03 points to 14,404.74, its highest close since Oct. 1. The Hang Send index recorded upside of 1.2 percent at 23,218.3 points on Friday with a first week increase of 0.3 percent, which was its first gain since the week ended Sept. 20.
Stocks in the news
JPMorgan Chase & Co (NYSE:JPM)
J.P. Morgan is expected to post its third quarter earnings of $1.19 per share as per the consensus estimates. Analysts led by Frederick Cannon at Keefe, Bruyette &Woods Inc. said in a report that they are positive on the JP Morgan for the third quarter as the litigation issues are expected to resolve that will let investors to focus on the company’s valuation and profitability proposition.
Wells Fargo & Co (NYSE:WFC)
Well Fargo is projected to post third quarter earnings of 97 cents. Jason Goldberg, an analyst at Barclays, said in a report that an increase in mortgage, expenses and earnings assets is being expected; primarily the pickup in the loan portfolio acquisitions will receive particular attention from investors.
Safeway Inc. (NYSE:SWY)
Following the Thursday closing bell, Safeway stated that it will exit the Chicago market by 2014, which will help it to derive a tax benefit of $400 million to $450 million. At present, Safeway runs 72 Dominick’s stores in the area. Third quarter earnings of Safeway declined 27 cents per share from 66 cents per share a year ago. Stock surged over 5 percent in after hours.
Micron Technology, Inc. (NASDAQ:MU)
Micron Technology posted a profit of $1.51 per share from a loss of 24 cents per share in the previous year. Results enhanced with the $1.31 per share gain linked to the acquisition of Elipda Memory and Rexchip Electronics. Micron stocks declined more than 1 percent in after-hours trading.
The Gap Inc. (NYSE:GPS)
Gap saw a decline in its same store sales in September by 3 percent against an increase of 6 percent in September last year. Last month, Gap posted 1.6 percent less than forecasted same store sales. Shares of the retailer slid around 5 percent in after hours.