Stocks that are expected to trade actively in U.S. markets on Thursday include: Goldman Sachs Group Inc (NYSE:GS), Google Inc (NASDAQ:GOOG), Verizon Communications Inc. (NYSE:VZ), Chipotle Mexican Grill, Inc. (NYSE:CMG), International Business Machines Corp. (NYSE:IBM).
U.S.: DJIA 15373.83 (1.36%), S&P 500 1,721.54 (1.38%), NASDAQ 3,839.43 (1.20%).
Pros And Cons Of Tail Risk Funds
Editor’s note: This article is part of a series ValueWalk is doing on tail risk hedge funds. The series is based on over a month of research and discussions with over a dozen experts in the field. All the content will be first available to our premium subscribers and some will be released at a Read More
Europe: FTSE 6,554.87 (-0.25%), DAX 8,787.04 (-0.67%), CAC 40 4,215.50 (-0.66%).
Asia Pacific: NIKKEI 14586.51 (0.83%), SHANGHAI 2,188.54 (-0.21%), HSI 23094.88 (-0.57%), ASX 200 5,283.10 (0.07%), KOSPI 2040.61 (0.29%).
Commodities: Oil 101.72 (-0.56%), NAT GAS 3.785 (0.42%), Gold 1,306 (1.90%), Silver 21.77 (1.87%), Wheat 687.75 (0.92%), Corn 446.00 (0.73%).
Currency: EUR/USD 1.3523 (0.66%), GBP/USD 1.6087 (0.87%), USD/JPY 97.96 (-0.81%).
10 year Treasury bond: 2.625 (-0.041).
Market and Economic Update
U.S. stock futures down: stock futures on the U.S. stock exchange were slightly down due to deal-making in Washington to end the budget issue. Dow Jones industrial average index futures dropped 0.2 percent, Standard & Poor’s 500 index futures declined 0.2 percent and NASDAQ index futures were shed 0.1 percent. Wall Street moved up before the deal on Wednesday. Dow surged 1.4 percent to 15,373.83. The S&P 500 moved up 1.4 percent at 1,721.54. The NASDAQ rose 1.2 percent to 3,839.43.
European markets down: On European stock exchange shares fell on Thursday, and blue chip index traded around 2.5 year high as investors were more focused on the corporate news rather than hoping Washington to avert the debt default. The FTSEurofirst 300 index of top European shares dropped 0.1 percent at 1,264.12 points. Eurozone’s blue-chip Euro STOXX 50 index declined 0.3 percent to 3,006.14.
Mixed response from Asian markets: Japan’s Nikkei share average touched three week high and was positive for straight seventh day on Thursday fueled by the decision of the United States to end a fiscal standoff and avert the debt default. The Nikkei surged 0.8 percent to 14,586.51 after hitting 14,664.22 earlier, it’s highest since Sept. 27. Hong Kong stock dropped down on Thursday mainly due to fall in the Chinese banking stocks as investors were cautious on Chinese economic data due on Friday. The Hang Seng Index closed dropping 0.6 percent at 23,094.9 points. The China Enterprises Index of the top Chinese listings in Hong Kong dropped 0.6 percent.
Stocks in News
Goldman Sachs Group Inc (NYSE:GS)
Goldman Sachs is expected to post its third quarter earnings of $2.43 per share on revenue of $7.36 billion as per the estimates of consensus survey by Thomson Reuters. Analysts at Keefe, Bruyette & Woods are expecting the revenue to come down by 11 percent from the previous quarter primarily due to lower trading and investment banking income.
Google Inc (NASDAQ:GOOG)
Google is expected to post earnings of $10.35 per share for the third quarter. Janney Capital Market analyst Shawn Milne said in a report that for the third quarter core area to focus will be monetization improvement, volume growth, commentary around the completed Enhanced Campaign transition (EC), Product Listing Ads adoption, and launch of the Moto X.
Verizon Communications Inc. (NYSE:VZ)
Verizon is projected to report earnings of 74 cents per share for the third quarter. Pacific Crest analyst Michael Bowen said in a report that Verizon will post higher growth in the near term backed by the share price rise and overall continued smartphone penetration. Further, the analyst is expecting increased earnings for 2013 fueled by wireless growth rate and wireless margin expansion.
Chipotle Mexican Grill, Inc. (NYSE:CMG)
Chipotle Mexican Grill is estimated to post earnings of $2.78 per share for the third quarter. Analysts from Sterne Agee feel that Chipotle is best positioned to profit in the restaurant category. Further, the analysts believe that Chipotle has more menu pricing power compared to competition, and should post higher sales from the roll out of catering.
International Business Machines Corp. (NYSE:IBM)
IBM posted third quarter profit of $4.04 billion or $3.68 per share, from $3.8 billion or $3.33 a share in the corresponding quarter of the previous year. Revenue came down to $23.7 billion from $24.7 billion. Analysts expected IBM to post revenue of $24.75 billion. Shares of IBM slumped over 6 percent in after hours.