Stocks that are expected to trade actively in U.S. markets on Tuesday include: News Corp (NASDAQ:NWSA), Rackspace Hosting, Inc. (NYSE:RAX), Sothebys (NYSE:BID), D.R. Horton, Inc. (NYSE:DHI) and Potbelly Corp (NASDAQ:PBPB).
Market Level
U.S.: DJIA 15783.10 (0.14%), S&P 500 1,771.89 (0.07%), NASDAQ 3,919.79 (0.01%).
Europe: FTSE 6,712.38 (-0.24%), DAX 9,083.22 (-0.27%), CAC 40 4,277.08 (-0.30%).
Asia Pacific: NIKKEI 14588.68 (2.23%), SHANGHAI 2,126.77 (0.82%), HSI 22901.41(-0.73%), ASX 200 5,393.09 (0.11%), KOSPI 1995.48 (0.92%).
Commodities: Oil 94.90 (-0.25%), NAT GAS 3.59 (0.45%), Gold 1,280.50 (-0.05%), Silver 21.17 (-0.53%), Wheat 650.50 (0.66%), Corn 437.50 (0.63%).
Currency: EUR/USD 1.3394 (-0.09%), GBP/USD 1.5882 (-0.66%), USD/JPY 99.69 (0.54%).
10 year Treasury bond: 2.782 (0.035).
Market & Economic Update
U.S market may open lower: U.S. stock futures were volatile today moving in and out of gains. Dow Jones industrial average index futures gained 0.1%, Standard & Poor’s 500 index was down 0.03% while the Nasdaq index futures were also down marginally. Yesterday, the Dow was up 0.1%, recording a new high. The S&P 500 also closed to its own record high reached on October 29.
European markets down: On Tuesday, European shares drifted down from the near five-year high, owing to a series of weak results and updates from companies indicating a weak demand and poor revenues in the earnings season. At 0840 GMT, FTSEurofirst was down 0.3% to 1,294.38, which is 1.4% below the five-year high attained last Thursday.
Asian markets mixed: Shares on the Japanese market rose close to the three-week high as exporters gained from the weak yen though contractors were down after the disappointing earnings. Nikkei gained 2.2% to 14,588.68, which is the highest since October 23. Hong Kong shares were down on Tuesday as investors await information on the country’s economic agenda for the next decade. The Hang Seng Index ended the day losing 0.7% to 22,901.4 points.
Stocks To Watch
News Corp (NASDAQ:NWSA)
For the fiscal first quarter, News Corp posted a profit of $27 million, or 5 cents a share compared to a loss of $92 million, or 16 cents a share last year. The media firm earned 3 cents a share, after excluding one-time items, which is below the analysts’ estimate of 5 cents a share. In after hours trading, shares were down over 2%.
Sothebys (NYSE:BID)
On late Monday, Sothebys posted a loss of 44 cents a share against 48 cents a share a year ago. Revenue for the quarter was up to $107.9 million from $68.5 million, a year ago. The auction house said it is reviewing its capital allocation and financial policies, and will announce them by early 2014. In after hours trading, Sothebys shares gained 1%.
Rackspace Hosting, Inc. (NYSE:RAX)
For the third quarter, Rackspace posted earnings of 11 cents a share, well below the consensus estimate of 15 cents a share. In after hours trading, Rackspace shares dropped 2.7%.
D.R. Horton, Inc. (NYSE:DHI)
D.R. Horton will post its fiscal fourth quarter earnings today. According to a consensus survey by FactSet, the company is expected to post earnings of 40 cents a share. Last week, analysts at Sterne Agee reiterated a Buy rating for D.R. Horton.
Potbelly Corp (NASDAQ:PBPB)
Potbelly Corp. will report its third quarter earnings on Tuesday. Sharon Zackfia, an analyst at William Blair, expects the company to post earnings of 9 cents a share, which is in line with the consensus, “and down 25%, owing primarily to the company’s transition to a normalized tax rate this year.”
