Futures rise despite fiscal cliff fears

President Obama is set to speak on the subject.

By Benzinga Nov 14, 2012 9:13AM

zurbar superstockU.S. equity futures rose in early Wednesday trading despite renewed fears over the fiscal cliff. Investors may have become hopeful of a deal in Washington when on Tuesday the White House announced that President Obama is set to speak Wednesday on the subject. The press conference is set for 1:30 p.m. ET.


In other news, Greece has another two years to reach its bailout targets, according to The Economist analysis . The country will need approximately another 32 billion euros. The magazine says that this itself could lead to Greece needing a third bailout.


Spanish banks had to borrow 367 billion euros from the European Central Bank in October. While the figure is less than the amount borrowed in September, some 400 billion euros, it is still very high.


The Bank of England's Inflation Report cut its growth forecast for the country from 2.0% to 1.9% in two years. Also, the Bank increased its inflation forecast for the same period to 1.8% from 1.7%.

  • S&P 500 futures rose 6.7 points to 1,377.60.
  • The EUR/USD was higher at 1.2747.
  • Spanish 10-year government bond yields fell to 5.838%.
  • Italian 10-year government bond yields fell to 4.954%.
  • Gold futures fell 0.04% to $ 1,724.10 per ounce.
  • For more of Benzinga's Top News stories, click here.

Commodities

Commodities were mostly higher in overnight trade led by the energy complex as gold lagged. WTI crude futures rose 0.43% to $85.75 per barrel and Brent crude futures rose 0.5% to $108.80 per barrel. Copper futures rose 0.36% to $348.35 on hopes of a fiscal cliff deal, which would avoid a sharp contraction in the economy and maintain end demand. Gold was lower and silver futures rose 0.06% to $32.51 per ounce.

 

Currencies

Currency markets were showing a dollar bearish bias in overnight trade as the greenback fell against a host of other currencies save for the yen. The EUR/USD was higher at 1.2747 and the dollar rose against the yen to 79.93. Overall, the Dollar Index fell to 80.99, down 0.12% overnight on weakness against the euro, the Swiss franc, and the Swedish krone. In addition, the Aussie dollar rose against the greenback and the EUR/AUD cross bounced back above 1.22.

 

Premarket movers

  • Home Depot (HD) shares rose 0.9% premarket following a 3.63% gain Tuesday on stronger than expected adjusted earnings.
  • Cisco (CSCO) shares rose 7.89% premarket after the company reported earnings that beat estimates and CEO, and Chairman John Chambers looks set to stay with the company longer than expected.
  • J.P. Morgan Chase (JPM) shares rose 0.55% as relaxed fears on the fiscal cliff and optimism on the buyback plan boosted shares.
  • Microsoft (MSFT) shares rose 1.33% after falling more than 3% Tuesday following the departure of its head of software. (Microsoft owns and publishes Top Stocks, an MSN Money site.)

 

Earnings

  • Abercrombie & Fitch (ANF) is expected to report third quarter earnings per share of $0.59 vs. $0.57 a year ago.
  • Interoil Corporation (IOC) is expected to report third quarter earnings per share of $0.12 vs. a loss of $0.41 a share a year ago.
  • Hot Topic (HOTT) is expected to report third quarter earnings per share of $0.09 vs. $0.07 a year ago.
  • Limited Brands (LTD) is expected to report third quarter earnings per share of $0.24 vs. $0.25 a year ago.
  • Netapp (NTAP) is expected to report second quarter earnings per share of $0.48 vs. $0.63 a year ago.
  • Williams Sonoma (WSM) is expected to report third quarter earnings per share of $0.45 vs. $0.41 a year ago.

 

Economics

On the economics calendar Wednesday, MBA mortgage applications, the producer price index, and retail sales are due out. Later, business inventories are expected to be released and the Treasury is set to issue four- and 52-week bills. At 2:00 p.m. ET, the FOMC minutes from the October meeting are due out.

 

More from Benzinga

Click here to sign up for a free two week trial of Benzinga Pro!

7Comments
Nov 14, 2012 11:35AM
avatar
Investors are hopeful for a "deal"?  What..print more money?  It is time to get our financial house in order and it means making significant cuts to spending on worthless projects and making sure everyone in America pays their fair share of taxes...including the wealthy.  Finally, stop bailing out other countries with money we don't have.  Spend money only if there is a direct benefit to the American people and good paying sustainable jobs are being created here in America using American made products supported by American labor.
Nov 14, 2012 11:30AM
avatar
The Fiscal Cliff is another chicken little crisis. The impact from the spending cuts and tax increase doesn't all occur on Jan 1st, 2013.  The tax increases tax effect as each pay period occurs and there is plenty of time to pass the legislation that's required to do what's right. Same goes for the spending cuts. There is NO Fiscal Cliff it's more like a Fiscal Slide that can be adjusted whenever the legislation is passed. It's amazing how Wall Street creates these impending crisis to get everyone's shorts in a knot so the traders can rape some more profits from scared fools. Remember the budget limit crisis that was going to cause another Depression.
Nov 14, 2012 11:38AM
avatar
The cliff is NEEDED.   Obama and socialists want more revenue  to redistribute.  That's OK as long as the 47% contribute to it.  Let all the W tax cuts expire.  All or None.   But, NO NEW SPENDING!

Let the cuts happen.  We need to slash 1,350 billion, so 65 billion is just a tiny fraction of what is needed.  And Defense needs to be cut also, we cannot afford what we spend.

In any case, NO NEW SPENDING, and lets go over the cliff...   

It is a start...
Nov 14, 2012 12:01PM
avatar
Greece will not reduce it's deficit spending.  Their budget is still a disaster.  Like us running a 1.3 trillion dollar deficit and complaining about 68 billion in cuts as 'going off a cliff'.   Greece like the USA must balance their budget or fiscal collapse WILL occur, it is just a question of when.

We face two options...  Devaluing the dollar via the printing press to pay our bills or reducing spending.   It is too late to help Greece.  The USA is near the point of no return.  We need to slash the SPENDING now.
Nov 14, 2012 11:55AM
avatar
Market heading lower?  Did the socialist-n-thief start speaking?   Maybe he does mean what he says?  Marxism, is coming to the USA?
Report
Please help us to maintain a healthy and vibrant community by reporting any illegal or inappropriate behavior. If you believe a message violates theCode of Conductplease use this form to notify the moderators. They will investigate your report and take appropriate action. If necessary, they report all illegal activity to the proper authorities.
Categories
100 character limit
Are you sure you want to delete this comment?

DATA PROVIDERS

Copyright © 2014 Microsoft. All rights reserved.

Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.

STOCK SCOUTER

StockScouter rates stocks from 1 to 10, with 10 being the best, using a system of advanced mathematics to determine a stock's expected risk and return. Ratings are displayed on a bell curve, meaning there will be fewer ratings of 1 and 10 and far more of 4 through 7.

118
118 rated 1
270
270 rated 2
472
472 rated 3
714
714 rated 4
624
624 rated 5
608
608 rated 6
623
623 rated 7
445
445 rated 8
319
319 rated 9
125
125 rated 10
12345678910

Top Picks

SYMBOLNAMERATING
AAPLAPPLE Inc10
ATVIACTIVISION BLIZZARD Inc10
BIDUBAIDU Inc10
BMYBRISTOL-MYERS SQUIBB CO.10
CELGCELGENE CORP10
More

VIDEO ON MSN MONEY

ABOUT

Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.

Contributors include professional investors and journalists affiliated with MSN Money.

Follow us on Twitter @topstocksmsn.