Stocks that are expected to trade actively in the U.S. market on Tuesday include Verizon Communications Inc. (NYSE:VZ), Johnson & Johnson (NYSE:JNJ), Intel Corporation (NASDAQ:INTC), International Business Machines Corp. (NYSE:IBM) and Delta Air Lines, Inc. (NYSE:DAL).
U.S.: Dow 16,458.56 (0.25%), S&P 500 1838.70 (-0.39%), NASDAQ 4197.58 (-0.50%).
At the end of October, the value investor Mohnish Pabrai gave a presentation and took part in a Q&A session at Boston College and Harvard Business School on the Uber Cannibal Investor Framework, which he has developed over the past decade. Uber Cannibals are the businesses “eating themselves by buying back their stock,” the value Read More
Europe: FTSE 6838.29 (0.02%), DAX 9745.01 (0.30%), CAC 40 4335.30 (0.30%).
Asia Pacific: NIKKEI 15795.96 (0.99%), HANG SENG 230033.12 (0.45%), SHANGHAI 2008.31 (0.86%), KOSPI 1963.89 (0.52%).
Commodities: Oil 94.64 (0.29%), NAT GAS 4.331 (0.12%), Gold 1247.60 (-0.34%), Silver 20.07 (-1.15%), Wheat 564.00 (0.09%), Corn 423.25 (-0.18%).
Currency: EUR/USD 1.3539 (-0.08%), GBP/USD 1.6426 (-0.02%), USD/JPY 104.73 (0.54%).
10 year Treasury bond: 2.863 (0.038).
Market and Economic Update
European market up – European stocks climbed early on Tuesday with a key index touching a new 5-1/2 year high following the gains in Asia after China’s Central Bank invested funds to ease the money market rates and improve the country’s latest cash squeeze. At 0808 GMT, the FTSEurofirst 300 index of top European shares was up 0.2% at 1,347.32 points.
Asian market up – The Nikkei average added 1% on Tuesday, and recovered most of its losses occurred over the past three trading days. Investors purchased the stocks expecting strong corporate earnings. The Nikkei closed 154.28 points higher at 15,795.96, rebounding from the one week low it touched on Monday. The China Enterprises Index of the top offshore Chinese listings in Hong Kong ended up 1.8% in its biggest daily gain since Nov. 18.
Mixed response from U.S. market, last week – Last week witnessed mixed reactions in U.S. market with Dow Jones Industrial Average climbing 0.1% for the week, the NASDAQ Composite index rising 0.6%, and the S&P 500 index dropping 0.2%. Year to date, the NASDAQ is the only index showing a gain of around 0.5%.
Stocks To Watch
Verizon Communications Inc. (NYSE:VZ)
Verizon Communications is expected to post fourth quarter earnings of $0.65 per share on revenue of $31.02 billion. Verizon shares declined 0.37% to close at $48.35 on Friday. “Among the four largest carriers, we continue to favor Verizon as we believe the company will be able to maintain its leadership position by effectively and profitably growing its subscriber base,” said Greg Miller, an analyst at Canaccord Genuity.
Johnson & Johnson (NYSE:JNJ)
Johnson & Johnson is speculated to post fourth quarter earnings of $1.20 per share on revenue of $17.95 billion. Shares of Johnson and Johnson dropped 0.33% to $94.75 in the after-hours trading session.
Intel Corporation (NASDAQ:INTC)
Intel announced it will cut around 5% of its workforce in 2014. Intel shares declined 2.60% to close at $25.85 on Friday. Intel has been increasing its focus on building data center business, as well as the internet of Things.
International Business Machines Corp. (NYSE:IBM)
International Business Machine Corp. is expected to earn around $5.99 per share on revenue of $28.25 billion in the fourth quarter. Shares of IBM declined 0.20% to $189.71 in after-hours trading. “We maintain our neutral on IBM ahead of their upcoming earnings results. The risk/reward is more balanced at present stock price levels, but ultimately IBM will need to return to growth to drive stock price appreciation,” said Joseph Foresi, an analyst at Janney Capital Markets.
Delta Air Lines, Inc. (NYSE:DAL)
Delta Air Lines is expected to post fourth quarter earnings of $0.63 per share on revenue of $9.03 billion. Shares of Delta increased 0.61% to $31.26 in after-hours trading.