Stocks expected to trade actively in the U.S. market on Monday include; Yum! Brands, Inc. (NYSE:YUM), The Wendy’s Co (NASDAQ:WEN), McDonald’s Corporation (NYSE:MCD), Intuit Inc. (NASDAQ:INTU) and Xyratex Ltd. (NASDAQ:XRTX).
Market Level
U.S.: Dow 16,437.05 (-0.05%), S&P 500 1842.37 (0.23%), NASDAQ 4174.66 (0.44%).
Europe: FTSE 6747.22 (0.11%), DAX 9504.46 (0.32%), CAC 40 4261.42 (0.25%).
Asia Pacific: NIKKEI 15912.06 (0.20%), HANG SENG 22888.76 (0.19%), SHANGHAI 2009.56 (-0.19%), KOSPI 1938.54 (-0.39%).
Commodities: Oil 92.28 (-0.47%), NAT GAS 4.15 (2.39%), Gold 1245.80 (-0.09%), Silver 20.08 (-0.71%), Wheat 574.50 (0.97%), Corn 435.00 (0.52%).
Currency: EUR/USD 1.3663 (-0.03%), GBP/USD 1.6434 (-0.24%), USD/JPY 103.36 (-0.74%).
10 year Treasury bond: 2.859 (-0.002).
Economic & Market Update
U.S. market may open lower: U.S. stock futures were down on Monday. Dow Jones industrial average index futures lost 0.2%, Standard & Poor’s 500 index futures were down 0.2%, while Nasdaq index futures shed 0.2% as well. Market analysts believe the Fed’s comments will again be in the spotlight this week.
European markets up: European stocks were up in early trade on Monday supported by banking stocks after regulators expressed their willingness to ease some restrictions on the method by which a leverage ratio is compiled. At 0900 GMT, the FTSEurofirst 300 index was up 0.1% at 1,322.74 points while the euro zone’s blue-chip Euro STOXX 50 index was up 0.2% at 3,108.92 points.
Asian markets also up: Asian shares and currencies were mostly firmer in the wake of surprisingly weak U.S. jobs numbers. The Japanese market was closed due to a holiday, while the South Korean market witnessed a gain of 0.7%. In emerging markets, Philippines was up 1.7% and Indonesia gained more than 0.6%. However, Shanghai was almost flat after China fixed its currency at a record high for a second straight session.
Stocks To Watch
Yum! Brands, Inc. (NYSE:YUM)
Yum Brands will announce its December sales figures on Monday. On Thursday, Morgan Stanley analyst John Glass downgraded the stock to Equalweight owing to uncertain performance in China. “YUM is still a great secular emerging markets growth story,” the analyst noted in a report.
The Wendy’s Co (NASDAQ:WEN)
Wendy’s is expected to report its preliminary fourth-quarter results today. According to analysts surveyed by FactSet, earnings are expected to come in at 6 cents a share on revenue of $606 million. Morgan Stanley has an Underweight rating on the stock with a target price of $7. “Reaching 2%-3% [comparable sales] goal has been a perennial challenge for Wendy,” said Glass.
McDonald’s Corporation (NYSE:MCD)
Morgan Stanley recently upgraded McDonald’s Corp. to Overweight with a price target of $115. According to an MS analyst, “Fundamentals are disappointing, but not abysmal.” Analyst notes that the company has underappreciated competitive advantages, and a sound business model.
Xyratex Ltd. (NASDAQ:XRTX)
Analysts expect Xyratex to report fourth quarter earnings of $0.12 per share on revenue of $208.73 million. The shares of the company were down 0.8% to $13.25 at the close on Friday.
Intuit Inc. (NASDAQ:INTU)
Intuit revealed plans to acquire privately owned Prestwick Services. The financial terms of the deal have not been disclosed yet. At the close on Friday, shares of the company were down 0.51% at $76.24.
