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Market Update

Wall Street Pauses As Banks Dominate Busy Earnings Calendar


Author: Nichole Harper
ticker.com
Last Update: 1:48 PM ET October 12 2015

[1:45 PM New York City, New York – Stocks on Wall Street paused as investors turned cautious ahead of earnings this week from mega cap and banking stocks. Eli Lilly suffered the largest single-day drop since 2009 after it canceled an experimental drug. Energy stocks fell after oil declined 2%.

Investors turned cautious ahead of busy earnings season and banks and several mega cap companies are scheduled to release earnings.

JPMorgan Chase is scheduled to release earnings on Tuesday followed by announcements from Bank of America, Citigroup, Goldman Sachs and Wells Fargo in the week.

Trading in stock markets in New York was muted after government, bond market and regulatory agencies were closed for the Columbus Day holiday.

On Wall Street, Tollbooth Strategy Index increased 26.33 or 0.3% to 10,584.28.

S&P 500 index edged up 1.37 to 2,016.31 and the Nasdaq Composite Index rose 9.37 or 0.2% to 4,839.74.

Crude oil in New York slumped $1.16 to $48.47 a barrel and gold jumped $6.62 to $1,163.15 an ounce.

Eli Lilly plunged nearly 8% and the stock is on track to suffer the largest single-day loss since 2009 after the pharmaceutical company canceled its experimental heart drug.

U.S. Movers

Boeing Co (BA) rose 7 cents to $139.76 after the aerospace company agreed to acquire the Germany-based early-stage pilot-training software developer Peters Software without disclosing terms.

Dell Inc, the privately held computer maker today agreed to acquire the data storage company EMC Corp in a deal valued at about $67 billion in cash and stock.

Staples, Inc (SPLS) rose 3 cents to $12.39 after the office products retailer agreed with the Federal Trade Commission to extend the review period for takeover of Office Depot Inc for about $6.3 billion.

The deal is now expected to be finalized by December 8.

VMware, Inc (VMW) plunged 11% or $8.65 to $70 after the virtualized infrastructure solution provider forecasted revenues for the third-quarter ending in September to jump to $1.67 billion and net income per diluted share to soar 35% to 60 cents.

European Markets

In London trading, FTSE 100 index slipped 52.88 or 0.8% to 6,363.84 and in Frankfurt the DAX index fell 4.61 to 10,094.20.

In Paris, CAC 40 index decreased 21.60 or 0.5% to 4,679.79.

Anheuser Busch Inbev SA fell 0.3% to €97.96 after the Belgium-based brewing company raised its proposed takeover offer for SAB Miller to £43.50 per share from £42.15 per share offered on October 7, fourth informal proposal.

Last week, the board of the U.K.-based rival SABMiller Plc rejected the third revised proposal as “substantially undervaluing the brewer.”

This Wednesday is the deadline for the final conclusion.

Prosiebensat 1 Media SE slid 0.3% to €44.81 after the Germany-based free television services provider agreed to acquire Sweden-based online travel group Etraveli Holding AB for about €235 million or $267 million from the private equity firm Segulah IV LP.

Asian Markets

Markets in Japan were closed today.

Stocks in Mumbai reacted to domestic corporate news and investors focused on the upcoming earnings from software exporters and banks.

Rupee weakened 1 paisa to 64.74 against one U.S. dollar.

The Sensex Index slipped 175.40 or 0.7% to close at 26,904.11. The CNX Nifty fell 46.10 or 0.6% to 8,143.60.

Infosys Limited dropped 3.9% to ₹1,122.50 after the second largest software services exporter said net in the second-quarter jumped 12.1% from a year ago to ₹3,398 crore.

Net revenues in the quarter advanced 8.9% to ₹15,635 crore.

Hindustan Construction secured a contract from nuclear recycle plant of BARC at Tarapur near Mumbai.

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Sources: Data collected by 123jump.com and Ticker.com from company press releases, filings and corporate websites. Market data: BATS Exchange. Inc