Stocks that are expected to trade actively in U.S. markets on Tuesday include: Citigroup Inc (NYSE:C), Yahoo! Inc. (NASDAQ:YHOO), Intel Corporation (NASDAQ:INTC), Charles Schwab Corp (NYSE:SCHW) and Teradata Corporation (NYSE:TDC).
U.S.: DJIA 15301.26 (0.42%), S&P 500 1,710.14 (0.41%), NASDAQ 3,815.27 (0.62%).
Third Point's Dan Loeb discusses their new positions in a letter to investor reviewed by ValueWalk. Stay tuned for more coverage. Loeb notes some new purchases as follows: Third Point’s investment in Grab is an excellent example of our ability to “lifecycle invest” by being a thought and financial partner from growth capital stages to Read More
Europe: FTSE 6,558.70 (0.78%), DAX 8,787.91 (0.73%), CAC 40 4,245.58 (0.54%).
Asia Pacific: NIKKEI 14441.54 (0.26%), SHANGHAI 2,233.41 (-0.19%), HSI 23336.52 (0.51%), ASX 200 5,259.15 (0.98%), KOSPI 2040.96 (1.02%).
Commodities: Oil 101.93 (-0.47%), NAT GAS 3.852 (0.84%), Gold 1,257.30 (-1.51%), Silver 21.755 (-2.81%), Wheat 689.25 (-0.47%), Corn 438.50 (0.34%).
Currency: EUR/USD 1.3507 (-0.39%), GBP/USD 1.5934 (-0.30%), USD/JPY 98.62 (0.07%).
10 year Treasury bond: 2.723 (0%).
Market and Economic Update
U.S. markets look encouraging: U.S. stock-index futures were up on Tuesday, indicating that the Standard & Poor’s 500 Index may extend its three-week high. At 10:44 a.m. in London, S&P 500 futures for December were up 0.2 percent to 1,707.4. In the last four trading sessions, S&P 500 has gained 3.3 percent, which is the biggest four-day rally since January.
European markets up: European shares were up early on Tuesday, marking the fourth straight session of gain. The markets were supported by signs that a deal may soon be struck in Washington to avert a damaging debt default. At 0726 GMT, FTSEurofirst 300 index gained 0.5 percent at 1,259.15 points. Eurozone’s blue-chip Euro STOXX 50 index, reached a new 2-1/2 year high, gaining 0.4 percent to 2,988.35 points.
Asian markets also up: Nikkei gained for the fifth straight session on Tuesday on the hopes that U.S. authorities will soon reach consensus to avert a possible debt default. Japan’s Nikkei was up 0.3 percent to 14,441.54. The Hang Seng Index also recorded its highest in three weeks, gaining 0.5 percent at 23,336.5 points. The China Enterprises Index, which is the top listings of Chinese firms in Hong Kong, was up 0.9 percent to 10,671.2 points.
Stocks in News
Citigroup Inc (NYSE:C)
Citigroup Inc (NYSE:C) reported third-quarter earnings of $1.02 a share, below $1.04 consensus expectations. Analysts from Raymond James expected core revenue to come down in the last quarter owing to the decline in the non-interest income “from a seasonally strong first half of market-related revenue, and mortgage volumes and margins compress.” The big bank missed on most metrics.
Yahoo! Inc. (NASDAQ:YHOO)
Yahoo! Inc. (NASDAQ:YHOO) will report its third quarter earnings after the market close on Tuesday. Analysts expect earnings to come in at of 33 cents a share. Cantor Fitzgerald expects the results to be in line with “muted expectations,” and believes the resumption of growth in 2014 as 2013 was mainly focused on investments and acquisitions. Also, an upcoming initial public offering from Alibaba.com Ltd. (OTCMKTS:ALBIY) (HKG:1688) is expected to provide some positive momentum to Yahoo’s stock.
Intel Corporation (NASDAQ:INTC)
Intel Corporation (NASDAQ:INTC) is expected to post third quarter earnings of 53 cents per share. Macquarie capital lowered the stock to Neutral last week. Analyst Deepon Nag of Macquarie said that Intel is following a good strategy by targeting many end markets by leveraging its manufacturing advantage. The analyst also said that the decline in the PC market in the near term will affect the numbers.
Charles Schwab Corp (NYSE:SCHW)
Charles Schwab Corp (NYSE:SCHW) is expected to post earnings of 20 cents per share for the third quarter. Schwab has performed above expectation once, in line with expectations once and below expectations once out of last four quarters, according to Richard Repetto, an analyst at Sandler O’Neill.
Teradata Corporation (NYSE:TDC)
Yesterday after the close, Teradata Corporation (NYSE:TDC) reflected a cautious outlook over its third quarter earnings and revenue. Earnings per share are expected to be around 69 cents to 70 cents, and revenue is expected to be $665 million compared to 81 cents and $699 estimated by analysts. Teradata stocks tanked more than 10% after hours.