Wall Street Attempting To Break Losing Streak
(RTTNews.com) - The sentiment on Wall Street suggests that stocks may fight to break free off the lackluster phase engendered by the U.S. budgetary crisis. The major U.S. index futures point to a slightly higher opening on Friday. With the release of the monthly non-farm payrolls report being delayed due to the ongoing government shutdown, the markets could closely track discussions among lawmakers in Washington and a few Fed speeches scheduled for the day.
At 6:15 am ET, the Dow futures are rising by 28 points, the S&P 500 futures are moving up 4.40 points and the Nasdaq 100 futures are adding 11 points.
U.S. stocks declined for the second straight day on Thursday amid anxiety concerning the budgetary deadlock and U.S. debt ceiling.
On the economic front, Dallas Federal Reserve Bank PresidentÃ‚Â Richard FisherÃ‚Â is scheduled to speak on the economy in Little Rock, Arkansas at 8:30 am ET. Federal Reserve GovernorÃ‚Â Jeremy SteinÃ‚Â will speak on tri-party repo at a New York Fed conference on fire sales at 9:30 am ET. Richmond Federal Reserve Bank PresidentÃ‚Â Jeffrey LackerÃ‚Â is due to speak on human capital investment in Baltimore at 12:30 pm ET. Minneapolis Federal Reserve BankÃ‚Â Narayana Kocherlakota is scheduled toÃ‚Â speak on the monetary policy in Bloomington, Minnesota at 1:45 pm ET.
In corporate news, Comtech Telecom (CMTL) reported fourth quarter GAAP earnings of 28 cents per share compared to 38 cents per share in the year ago period. Net sales fell to $84.4 million from the year-ago quarter's $112.8 million. For 2014, the company expects GAAP earnings of $1.07 to $1.19 per share on sales of $320 million to $340 million. The results exceeded estimates and the guidance was in line.
Pfizer (PFE) announced that the FDA gas approved DUAVEE fore the treatment of moderate to severe Vasomotor Symptoms associated with menopause and the prevention of menopausal osteoporosis. The company said it expects DUAVEE to be available in the U.S. in the first quarter of 2014.
Forest Oil (FST) announced a deal to sell its Templar Energy oil and gas assets in the Texas Panhandle Area for $1 billion. The deal is expected to close on or before November 25th, 2013. For the most recent 12-month period, the assets proposed to be divested produced 100 million metric cubic feet of oil equivalents, generated EBITDA of about $180 million.
Lexmark (LXK) announced a deal to buy PACSGEAR, a provider of connectivity solutions for healthcare providers for $54 million in cash.
The major Asian markets retreated, hit by the negative close on Wall Street overnight amid the budgetary impasse in the U.S. Most major markets in the region, with the exception of Indian and Malaysian markets retreated, while the Chinese market continued to remain closed for the Golden Week holidays.
Japan's Nikkei 225 average languished below the unchanged line throughout the session before closing down 132.94 points or 0.94 percent at 14,024. Australia's All Ordinaries ended 26.10 points or 0.50 percent lower at 5,206. The market witnessed broad based weakness, with energy, financial and material stocks leading the slide. Hong Kong's Hang Seng Index closed at 23,139, down 75.86 points or 0.33 percent.
In major corporate news from the region, South Korea'sSamsung Electronics pre-announced that it expects third quarter operating profit to increase about 25 percent to 10.1 trillion won and sales to rise by about 13 percent to 59 trillion won.
On the economic front, the Bank of Japan decided to hold its monetary easing plan unchanged while also maintaining its economic assessment. At the end of a two-day meeting of the nine-member Policy Board led by Governor Haruhiko Kuroda, the central bank said it will keep the target for the monetary base expansion at an annual pace of 60-70 trillion yen.
Additionally, with respect to its asset purchase program, the BOJ said it will continue to increase its purchases of Japanese government bonds at an annual pace of about 50 trillion yen. The board's decision to refrain from any fresh policy moves was in line with expectations.
European stocks opened on a mixed note but have been trading mostly higher. The French market and the German market are higher, while the U.K. market is flat.
In corporate news, U.K.'sTate & Lyle said it expects its second quarter performance to come broadly in line with expectations. The company sees lower profit for the first half, although it expects to be profitable for the full year. Barclays (BCS) announced that its rights issue announced in late July was 94.63 percent subscribed.
Irish airline Aer Lingus Group said total passengers flown for September declined from last year, reflecting poor performance in short haul passenger numbers.
On the economic front, a report released by SMMT showed that passenger car sales in the U.K. rose 12.1 percent year-over-year in September, rising for the 19th straight month.
German producer prices fell 0.5 percent month-over-month in August following an unchanged reading in July. On a monthly basis, prices edged down 0.1 percent. Economists expected producer prices to have remained unchanged compared to both the previous month and the year-ago period. The results of a survey by Markit Economics showed that the German construction sector expanded for the fifth straight month in September, but at a notably slower pace than in the previous month.
Passenger car sales in the United Kingdom increased for the nineteenth successive month in September, with new car registrations increasing 12.1 percent percent year-on-year to 403,136 units, a report released by the Society of Motor Manufacturers and Traders showed.
The euro is trading mixed against rivals after official data showed euro-zone industrial producer prices dropped 0.8 percent in August from a year ago versus expectations for a 0.5 percent decline.
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