Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Pre-Market: Cisco Fails to Overturn Microsoft's Skype Takeover; Congressional Leaders Agree to Bipartisan Budget Deal


A deal that could end Congress' fiscal shenanigans.

Stocks were just slightly higher today after Congress reached a budget deal.

House and Senate negotiators including Patty Murray and Paul Ryan approved a plan that will avoid automatic budget cuts such as the sequester from earlier this year. As long as the two chambers of Congress approve it, we can avoid a repeat of the October government shutdown. Both President Obama and Speaker Boehner applauded the bipartisan deal. Some Republicans say that the spending cuts in the deal don't go far enough, however.

The budget deal brings us closer to removing that uncertainty of another government shutdown, which means that the Federal Reserve would have less reason to continue its stimulus program. As a result, global equities have been poor today. Economists surveyed by Bloomberg said that the Fed will probably begin reducing asset purchases at their meeting next week.

US stock indices are relatively flat before the opening bell today. Dow (INDEXDJX:.DJI) futures were up 0.05% to 15,986. S&P 500 (INDEXSP:.INX) futures fell 0.04% to 1,803.80 and futures on the Nasdaq Composite (INDEXNASDAQ:.IXIC) were flat at 3,515.00.

Costco Wholesale Corporation (NASDAQ:COST) reported today that earnings per share for the fiscal first quarter were $0.96, missing estimates by $0.07. Revenue of $24.47 billion also fell short of expectations. Shares of the discount retailer fell 1.7% in pre-market trading.

Smith & Wesson Holding Corp (NASDAQ:SWHC) shares jumped 5.8% this morning after the gun maker reported fiscal second quarter earnings that exceeded expectations. The shooting at an elementary school a year ago spurred a national conversation on gun control, which brought the company a 27% year-over-year rise in handgun sales. Revenue rose 2% to $139.3 million and EPS came in at $0.28.

Cisco (NASDAQ:CSCO) shares fell 1% this morning after it lost a bid to overturn the European Union's approval of Microsoft's (NASDAQ:MSFT) acquisition of Skype in 2011. The EU court ruled that the Skype acquisition does not restrict competition for video conferencing.

MasterCard (NYSE:MA) shares rose 4% after the bank card company's board approved an 83% hike in dividends and a 10-for-1 stock split.

Twitter: @vincent_trivett
< Previous
  • 1
Next >
No positions in stocks mentioned.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.
Featured Videos