Pre-Market Primer: Stocks Flat Ahead of US Election; Greek Parliament Holds Critical Vote
By Vincent Trivett Nov 05, 2012 8:50 am
And China is probably not going to be changing much for another 10 years.
MINYANVILLE ORIGINAL With one day left before the US general election, stock futures are hardly changed.Twitter: @vincent_trivett
Before the opening bell, Dow (INDEXDJX:.DJI) futures were up 0.02% to 12,993.00, S&P 500 (INDEXSP:.INX) futures dropped 0.05% to 1,405.80. Nasdaq (INDEXNASDAQ:.IXIC) fell 0.01% to 2,640.75.
Economists estimate that the ISM non-manufacturing index, due to be released at 10:00 a.m. EST, will show that the US service sector grew at a faster pace in October. The index is expected to rise to 55.1 from 54.9. Readings greater than 50 indicate an expansion of activity in the sector.
The Greek Parliament is holding a critical vote on labor reforms that are necessary to secure more aid. The bill will make privatization of public utilities possible and reform the country's pensions. The risk of a negative vote is very real, and Greece will probably run out of cash completely on Nov. 16 without more help from the troika. Utilities workers are on strike ahead today to protest the vote.
The euro dipped to one-month lows to $1.28 today. With all of the uncertainty in Europe, investors ran to the safety of bunds. German two-year bond yields fell to negative 0.01%. This means that investors are effectively paying for the pleasure of loaning Germany some money for two years.
Toyota (NYSE:TM) beat expectations with a $3.2 billion profit, a 70% rise from last year, when the company was still recovering from the earthquake's damage. Revenue rose only 18%, but the automaker pushed to cut costs to offset the uncompetitive state of the yen.
Time Warner Cable (NYSE:TWC) net profit almost doubled to $808 million, or $1.43 per share, missing estimates by $0.02. Shares fell about 1% in the pre-market after the announcement.
Tesla Motors (NASDAQ:TSLA) shares rose over 4% in the pre-market after posting a smaller-than-expected loss of $1.05 per share on $50.1 million in revenue.
China is preparing for its once-in-a-decade changing of the guard, and those hoping for change might be seriously disappointed. The South China Morning Post reports that the new Politburo will be filled mostly with old guard conservatives.
Reuters reports that US gasoline prices have fallen to the lowest in four years. The average price for a gallon of regular gasoline has fallen to $3.545, down $0.2075 from October 19. In California, the pump price dropped by $0.49
No positions in stocks mentioned.
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