Stocks that are expected to trade actively in U.S. markets on Monday include: McDonald’s Corporation (NYSE:MCD), Netflix, Inc. (NASDAQ: NFLX), Texas Instruments Incorporated (NASDAQ:TXN), VMware, Inc. (NYSE:VMW) and Halliburton Company (NYSE:HAL).
U.S.: DJIA 15399.65 (0.18%), S&P 500 1,744.50 (0.65%), NASDAQ 3,914.28 (1.32%)
Europe: FTSE 6,634.92 (0.19%), DAX 8,854.83 (-0.12%), CAC 40 4,273.63 (-0.29%)
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Asia Pacific: NIKKEI 14693.57 (0.91%), SHANGHAI 2,229.24 (1.62%), HSI 23438.15 (0.42%), ASX 200 5,351.77 (0.57%), KOSPI 2053.01 (0.03%)
Commodities: Oil 100.09 (-0.71%), NAT GAS 3.80 (0.96%), Gold 1,317.80 (0.24%), Silver 22.175 (1.20%), Wheat 709.75 (0.57%), Corn 443.00 (0.34%)
Currency: EUR/USD 1.3676 (-0.04%), GBP/USD 1.6168 (0.09%), USD/JPY 98.11 (0.41%).
10 year Treasury bond: 2.594 (0.011)
Market & Economic Update
U.S markets expected to be stable: Index futures witnessed a slight change after the S&P 500 Index climbed to a record high backed by the earnings expectations and tomorrow’s jobless data to measure the strength of the economy. S&P 500 futures expiring in December surged less than 0.1 percent to 1,737.7 at 10:52 a.m. in London. Contracts on the Dow Jones Industrial Average rose 11 points, less than 0.1 percent, to 15,327 today.
Europe Stock on record high: European stock markets have recorded another five year high as investors are now focusing on the actions that the Federal Reserve will take after U.S. lawmakers voted to lift the debt limit that averted probable default risk, which according to experts if triggered, could have pushed worldwide economies into recession. The FTSEurofirst 300 index surged up to a new five year high on Monday fueled by a record high on Wall Street, solid earnings and expectations that the U.S. Federal Reserve will continue its easing policy. FTSE touched 1,278.75; it’s highest since mid-2008.
Asia shares slightly rise: Shares on Hong Kong stock exchanges recorded a slight uptrend on Monday backed by solid performance of Chinese internet giant Tencent Holdings, which counterbalanced a downtrend in Hutchison Whampoa, after it scrapped plans to sell its supermarket business. Hang Seng Index surged 0.4 percent to close at 23,438.2 points. The benchmark Nikkei index in Japan climbed to a three week high on Monday expecting the U.S. Federal Reserve to continue its economic stimulus following the government shutdown for the 16th day. Nikkei closed up 0.9 percent to 14,693.57 after touching 14,727.85 earlier which is the highest since September 27th.
Stocks in News
McDonald’s Corporation (NYSE:MCD)
McDonald’s is expected to declare third quarter earnings of $1.51 per share as reported by Thomson Reuters. According to Janney Capital Market analyst Mark Kalinowski, same store sales for McDonalds are expected to be very high. He noted that if sales struggle to be in line or underperform the street expectations, then it will be difficult for the company to outperform its restaurant-stock peers and the S&P 500.
Netflix, Inc. (NASDAQ: NFLX)
Netflix is expected to clock in earnings of 49 cents per share in the third quarter. Rob Sanderson at MKM Partners said that Netflix is primarily based upon expansion of the subscriber base, and net addition will be one of the key factors. Sanderson is estimating an increase of domestic subscribers for Netflix in the upper end of the 800,000 to 1.5 million ranges.
Texas Instruments Incorporated (NASDAQ:TXN)
Texas Instruments is projected to post third quarter earnings of 53 cents per share. Analysts at Wedbush are aniticpating that the results will be in line with the expectations. Analyst Betsy Van Hees from Wedbush noted that Texas will derive benefit from growth in industrial, automotive, and communications infrastructure along with new product launches of handsets, notebooks and gaming consoles.
VMware, Inc. (NYSE:VMW)
VMware is expected to report earnings of 82 cents a share in the third quarter. The company is advancing with its target of virtualizing the whole data center, with the general availability of its network virtualization platform along with desktop. VMware acquired desktop-as-a service company Desktone.
Halliburton Company (NYSE:HAL)
Halliburton Co is expected to report third-quarter earnings of 82 cents a share. A manager in Halliburton Co has pleaded guilty in connection with Halliburton’s role in the BP oil spill, in the Gulf of Mexico in 2010.