Stocks that are expected to trade actively in U.S. markets on Monday include: Nuance Communications Inc. (NASDAQ:NUAN), Workday Inc (NYSE:WDAY), J.C. Penney Company, Inc. (NYSE:JCP), Allegion PLC (NYSE:ALLE) and Salesforce.com, inc. (NYSE:CRM).
Market Level
U.S.: DJIA 16064.77 (0.34%), S&P 500 1804.76 (0.50%), NASDAQ 3991.65 (0.57%).
Europe: FTSE 6706.50 (0.48%), DAX 9287.06(0.74%), CAC 40 4297.39 (0.44%).
Asia Pacific: NIKKEI 15619.13 (1.54%), SHANGHAI 2186.11 (-0.47%), HSI 23684.45 (-0.05%), ASX 5352.83 (0.32%), KOSPI 2015.98 (0.49%).
Commodities: Oil 93.56 (-1.35%), NAT GAS 3.828 (1.59%), Gold 1229.60 (-1.18%), Silver 19.64(-1.12%), Wheat 653.50 (0.62%), Corn 423.25(0.24%).
Currency: EUR/USD 1.3531 (-0.20%), GBP/USD 1.6189 (-0.21%), USD/JPY 101.69 (0.41%).
10 year Treasury bond: 2.756 (0.01).
Market & Economic Update
U.S. market may open higher – U.S. stocks futures traded above the point they reached last week reflecting a better start for Wall Street as investors gear up to take more risks, and oil prices declined after Iran concluded a deal with six world powers.
Futures for the Dow Jones Industrial Average surged 58 points, or 0.4%, to 16,085, and Standard & Poor’s 500 index climbed 5.3 points, or 0.3%, to 1,806.50. Futures for the Nasdaq 100 index added 11.50 points, or 0.3%, to 3,431.
European markets up – Stocks on European Indexes soared in early trade fueled by the deal between Iran and six world powers to drastically reduce Tehran’s nuclear program in exchange for a partial lift on sanctions. At 0809 GMT, the FTSEurofirst 300 index rose 0.4% at 1,301.97 points, and eurozone’s blue-chip Euro STOXX 50 index climbed up 0.4% at 3,067.83 points.
Asian market also up – Asian stocks traded high on the back of ongoing weakness in the yen and the deal with Iran. The Nikkei climbed 1.5% on Monday, within sight of a 5-1/2 year peak reached in May. Australia’s S&P/ASX 200 surged 0.3% and South Korea’s Kospi gained 0.7%. Hang Seng Index was up 0.2% and Shanghai Composite added 0.3% in mainland.
Stocks to watch
Nuance Communications Inc. (NASDAQ:NUAN)
Nuance Communication is expected to post fourth quarter earnings of 28 cents per share and revenue is estimated around $488 million. Shares have lost 28% this year. Analysts at Wedbush Equity Research expect “a modest adjustment to consensus estimates,” and believe Nuance is well positioned to capitalize on long-term opportunity.
Workday Inc (NYSE:WDAY)
Workday is estimated to post third quarter loss of 17 cents per share on revenue of $117.8 million. Shares of the company soared 43% over past 12 months. Analysts are expecting good results from Workday.
J.C. Penney Company, Inc. (NYSE:JCP)
J.C. Penney has been dropped from the S&P 500 and will be added to S&P 400 replacing Aeropostale. The company will start its Black Friday sales at 8 p.m. on Thursday. The special “Door Busters” deals will be started at 8 p.m. from Thursday to 1 p.m. on Friday. J.C. Penney shares have dropped 55% this year, leaving it with a market cap of $2.7 billion.
Allegion PLC (NYSE:ALLE)
Allegion will replace JC Penney on the S&P 500. Allegion, which is a spinoff of Ingersoll Rand, is a global provider of security solutions that help keep people safe where they live, work and visit.
Salesforce.com, inc. (NYSE:CRM)
Among the cloud-computing stocks, Barron’s article discussed Salesforce as an Industry leader, which does not earn profit on GAAP earnings that includes stock compensation expense, and yet it has a market value of $34 billion.
