US stock futures were mixed this morning despite a major breakthrough in the fiscal cliff negotiations.
Futures on the Dow Jones Industrial Average
(INDEXDJX:.DJI) rose 0.11% to 13,102 and S&P 500
(INDEXSP:.INX) futures gained 0.22% to 1,412.10. However, Nasdaq
(INDEXNASDAQ:.IXIC) futures fell 0.05% to 2,622.00.
The Federal Reserve Board of New York reported today that the New York metropolitan area manufacturing managers and executives see business activity declining this month. The NY Fed's manufacturing index unexpectedly fell to -8.10. The index was expected to come out to zero.
Exports out of the eurozone fell 1.4% in October, shrinking the region's trade surplus to 7.9 billion euros.
Japan's Liberal Democratic Party returned to power in a landslide victory yesterday, after just under three years of rule by the Democratic Party of Japan. Shinzo Abe will replace Yoshihiko Noda as Prime Minister. Abe vows to pressure the Bank of Japan to step up monetary stimulus and weaken the yen. The Nikkei 225
(INDEXNIKKEI:NI225) ended the day up 0.94% and the yen rose to 83.87 to the dollar.
(AAPL) shares continued to slid below $500 for the first time since February today when Citigroup
(NYSE:C) downgraded the company's shares. The analysts downgraded Apple to neutral from buy, citing weaker-than-expected orders for the iPhone 5. Apple's share price stands at $496.89, up 25% since the beginning of the year, and nearly 30% off its record intra-day high of $705.07 on September 21.
(NYSE:S) announced today that it has reached a deal to buy the remaining shares of Clearwire
(NASDAQ:CLWR) that it doesn't already own for $2.97, a premium of 128% over the wireless home Internet company's last closing price. The deal will help Sprint expand its LTE network in the US. SoftBank
(PINK:SFTBF), which owns Sprint, uses a similar spectrum to Clearwire.
With two weeks left before the so-called fiscal cliff hits, no deal is in sight, but the Republicans have made strides toward a compromise. House Speaker John Boehner has reportedly offered a deal where taxes on households making more than $1 million in income every year would go up in exchange for entitlement program cuts. Though this is a major breakthrough -- up until now the GOP has refused to return to pre-Bush tax cut rates -- the White House rejected the offer, saying that it wouldn't raise enough revenue to reduce the deficit, and letting emergency unemployment benefits lapse would have adverse effects on the economy.
No positions in stocks mentioned.
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