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Pre-Market Primer: White House Not Buying GOP Fiscal Cliff Compromise

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Republicans tried to meet Obama halfway on revenue, but didn't come far enough.

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MINYANVILLE ORIGINAL Stocks were set to move slightly higher this morning after disappointing manufacturing data sparked declines yesterday.

Dow (INDEXDJX:.DJI) futures rose 0.11% to 12,964 while futures contracts on the S&P 500 (INDEXSP:.INX) rose 0.11% to 1,408.60 and Nasdaq (INDEXNASDAQ:.IXIC) futures climbed 0.10% to 2,672.75. Yesterday, worse-than-expected manufacturing data from the Institute for Supply Management halted a three-day rally in US indices.

Today, there will be no major economic data releases, and investors' focus will be on the stalemate over the fiscal cliff negotiations in Washington.

Republicans offered a compromise on the fiscal cliff yesterday. The opposition proposed an additional $800 billion in new tax revenue and $1.2 trillion in spending cuts over 10 years, roughly half of what the White House says is necessary. Though the Republican proposal wasn't as radical as the Paul Ryan budget, the administration dismissed it because it didn't raise enough revenue in taxes on the wealthiest Americans.

Qualcomm (NASDAQ:QCOM) announced that it will make a $120 million investment in Sharp (TYO:6753), the struggling Japanese electronics company.

As the housing recovery in the United States ramps up, homebuilder Toll Brothers (NYSE:TOL) saw its fiscal fourth quarter revenue and profits rise. The company earned $411 million, or $2.35 per share, a dramatic rise from $15 million a year ago. Revenue rose to $632.8 million from $427.8 million a year ago. Analysts expected only $0.25 per share earnings.

Spanish unemployment continues to rise. Another 74,296,000 Spaniards registered as jobless last month, bringing the unemployment rate up 1.5%. There are now 4.9 million out of work.

German exports rose 3.6% in the third quarter. Shipments outside of the eurozone increased 9.9%, which helped offset weakness to other countries in the currency union.

Producer prices in eurozone countries rose 0.1% in October, or 2.6% from a year ago.

Europe's finance ministers gathered in Brussels again today to discuss the possibility of a single supervisory mechanism (SSM) for eurozone banks.

France and Germany are often at odds over this key step toward a banking union. France favors the creation of a bank regulator that would have jurisdiction over all eurozone banks. Germany favors a "two-speed" approach that would allow smaller German banks to operate with less supervision.

Luxembourg's prime minister Jean-Claude Juncker, stepped down from his duties as the Eurogroup's president.

Twitter: @vincent_trivett
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No positions in stocks mentioned.
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