Stocks that are expected to trade actively in U.S. markets on Tuesday include: General Motors Company (NYSE:GM), Ford Motor Company (NYSE:F), Krispy Kreme Doughnuts (NYSE:KKD), Forest Laboratories, Inc. (NYSE:FRX) and Ascena Retail Group Inc (NASDAQ:ASNA).
U.S.: DJIA 16008.77(-0.48%), S&P 500 1800.90 (-0.27%), NASDAQ 4045.26 (-0.36%).
Amid the turmoil in the public markets and the staggering macroeconomic environment, it should come as no surprise that the private markets are also struggling. In fact, there are some important links between private equity and the current economic environment. A closer look at PE reveals that the industry often serves as a leading indicator Read More
Europe: FTSE 6543.30(-0.79%), DAX 9306.15(-1.02%), CAC 40 4216.59 (-1.62%).
Asia Pacific: NIKKEI 15749.66(0.60%), SHANGHAI 2222.67 (0.69%), HSI 23910.47(-0.53%), ASX 5256.07 (-0.44%), KOSPI 2009.36(-1.05%).
Commodities: Oil 94.17 (0.35%), NAT GAS 3.975 (-0.28%), Gold 1221.20 (-0.07%), Silver 19.18(-0.56%), Wheat 650.50 (0.12%), Corn 424.00(-0.12%).
Currency: EUR/USD 1.3572 (0.24%), GBP/USD 1.6424 (0.42%), USD/JPY 102.54 (-0.35%).
10 year Treasury bond: 2.798 (-0.01).
Market & Economic Update
U.S. equities trade lower- In the last trading session, equities declined on the U.S. stock market as investors ran short of reasons to continue the share rally after eight weeks of gain. Major US stocks traded around breakeven level in the trading session. The S&P 500 soared for eight weeks marking its longest run since the nine-week rise between November 2003 and January 2004. The Dow also repeated an all-time high.
European markets fall- European stocks tumbled to one week lows on Tuesday after U.S. data reflected that the Fed will discontinue stimulus sooner rather than later. The FTSEurofirst 300 tumbled 0.2% at 1,298.69 points by 0836 GMT. The EuroSTOXX 50 index of the euro zone blue chips also dropped 0.2%, to 3,070.84 points, touching one-week lows.
Asian markets up- Hong Kong shares showed their highest levels in more than 31 months on Tuesday as investors booked profit from a Chinese financial sector that surged on expectations that China could resume initial public listings next year. The Hang Seng Index, which closed on Monday at its highest since late April 2011, closed down 0.5% at 23,910.5 points. The Nikkei surged to its highest close in six years on Tuesday owing to a fall in yen on the expectations that Bank of Japan may trigger monetary easing. The Nikkei ended 0.6% higher at 15,749.66, its highest close since Dec. 12, 2007.
Stocks to watch
General Motors Company (NYSE:GM)
General Motors is expected to be actively traded as auto sales are expected to enhance to a seasonally adjusted annual rate of 15.7 million to 15.9 million, in November, from 15.2 million in October, according to Elaine Kwei, an analyst at Jefferies. The auto company is estimated to report a growth 16.4% to 217,000 units.
Ford Motor Company (NYSE:F)
Ford is also expected to trade actively for similar reasons as General Motors. Ford is expected to report a growth of 188,000 units, an increase of 8.2%. There was no effect of a government shutdown, in the United States, on the customers, who did not hesitate to buy the cars. Auto sales are expected to grow strongly, according to analysts and experts.
Krispy Kreme Doughnuts (NYSE:KKD)
Krispy Kreme Doughnuts posted an increase of 34% in third quarter profits. However, the company gave a weak outlook for fiscal 2015. Shares of Krispy Kreme slumped 13.81% to $21.16 in the afterhours trading session. Earnings for the third quarter came in at $6.8 million, or nine cents per share, which is an increase from $5 million from the previous year.
Forest Laboratories, Inc. (NYSE:FRX)
Forest Laboratories will slash around 500 jobs and has announced a buyback of at least $400 million shares. Shares of the company declined 0.07% to $56.28 in after-hours trading. The company has 5,800 employees as of March 31st and the recent job cuts represent 9% of the total staff. Primarily layoffs will be carried out in the United States.
Ascena Retail Group Inc (NASDAQ:ASNA)
Ascena Retail Group posted strong results for the first quarter. Ascena Retail shares surged 4.21% to $21.76 in the after-hours trading session. Net income for the company increased $52.6 million or 32 cents per share compared to $43.1 million or 27 cents per share in the same quarter of the previous year. Adjusted earnings per share came in at 36 cents, beating the the analysts’ estimates by 4 cents.