Stocks that are expected to trade actively in the U.S. market on Tuesday include; Wells Fargo & Co (NYSE:WFC), Google Inc (NASDAQ:GOOG), JPMorgan Chase & Co. (NYSE:JPM), Yum! Brands, Inc. (NYSE:YUM) and Time Warner Cable Inc (NYSE:TWC).
U.S.: Dow 16,257.94 (-1.09%), S&P 500 1819.20 (-1.236%), NASDAQ 4113.30 (-1.47%).
Europe: FTSE 6722.59 (0.11%), DAX 9439.70 (-0.73%), CAC 40 4243.57 (-0.46%).
Asia Pacific: NIKKEI 15422.40 (-3.08%), HANG SENG 22791.28 (0.19%), SHANGHAI 2026.84 (0.86%), KOSPI 1946.07 (-0.15%).
Commodities: Oil 92.17 (0.40%), NAT GAS 4.31 (0.84%), Gold 1249.30 (-0.14%), Silver 20.295 (-0.44%), Wheat 573.00 (0.97%), Corn 432.75 (-0.40%).
Currency: EUR/USD 1.3676 (0.04%), GBP/USD 1.6423 (0.23%), USD/JPY 103.69 (0.69%).
10 year Treasury bond: 2.852 (-0.022).
Economic & Market Update
U.S. market may open lower: On Tuesday morning, U.S. stock futures traded in a narrow range as Japan’s benchmark fell sharply. Dow Jones industrial average index futures were up 0.04% while Standard & Poor’s 500 index futures and Nasdaq index futures were down 0.03% and 0.1% respectively. The market was down yesterday as investors prepare for the earnings season starting next week.
European markets down: European equities were down in the morning on Tuesday following the lead by U.S. stocks. The Euro Stoxx 600 Index was down, and could witness its worst drop since December 12.
Asian markets also down: Japan’s Nikkei average was down 3.1%, which is its biggest one-day drop in five months. The index tumbled to its one month low following a sharp rise in the yen after a weaker-than-expected U.S. payrolls report. The China Enterprises Index of the leading offshore Chinese listings in Hong Kong closed down 0.3% owing to a 12% fall in Great Wall Motor after the company announced a delay in the launch of its new Haval H8 sports utility vehicle model. The Hang Seng Index ended fell 0.4% to 22,791.28 points.
Stocks To Watch
Wells Fargo & Co (NYSE:WFC)
Wells Fargo & Company posted its fourth quarter earnings bright and early this morning; expectations of $0.98 per share on revenue of $20.69 billion were close to the reality of $1.00 per share on revenue of $20.67 billion. After the results were announced, shares in the bank slipped a touch in premarket trading.
Google Inc (NASDAQ:GOOG)
On Monday, Google revealed plans to acquire Nest Labs for $3.2 billion. “Nest’s mission is to reinvent unloved but important devices in the home such as thermostats and smoke alarms,” said Google Chief Executive Larry Page. In the after-hours trading session, shares of the search engine giant were gained 0.62% to $1,129.99.
JPMorgan Chase & Co. (NYSE:JPM)
For the fourth quarter, JPMorgan Chase & Co was expected to post earnings of $1.39 per share on revenue of $24.47 billion. Barclays analyst Jason Goldberg said, in a recent report, “We expect increased details around recent legal issues while potentially updating the prior quarter’s reserve position disclosure. We believe its outstanding issues are manageable.”
JPMorgan posted its results early this morning and reported earnings of $1.40 a share on revenue of $24 billion. The stock ticked up slightly in premarket trading.
Yum! Brands, Inc. (NYSE:YUM)
Yum! Brands posted a 2% rise in the same-store sales in China for December. For the fourth quarter, same store sales for the company fell 4%, in China. In after-hours trading, shares of Yum were down 0.76% to $72.85.
Time Warner Cable Inc (NYSE:TWC)
As per the reports, Charter Communications has offered about $132.50 a share to buy Time Warner Cable, in a deal worth up to $61 billion. Time Warner Cable believes its fair value is more than $150 a share, according to The Wall Street Journal.