While Western nations try to agree on broader sanctions against Russia following the shooting down of a passenger plane in Ukraine, pro-Moscow separatists have agreed to hand over the plane’s recording device as well as the remains of the nearly 300 victims.
Russia has been accused of backing the separatists by providing artillery and training, something Western leaders say makes Moscow responsible for the Malaysian Airlines incident.
Preliminary investigations show that the shooting was a mistake, but the incident has ignited further tension between Russia and the West, and stricter sanctions are expected.
In other news around the markets:
- The conflict in Iraq continued on Monday after a government airstrike north of Baghdad left 10 people, reportedly all civilians, dead. The attack was part of the Iraqi government’s attempts to regain control of northern Iraq, but rebel groups had created their base in the center of a civilian town.
- On Monday, Netflix released better than expected second-quarter earnings due in large part to the company’s 1.7 million new subscribers. The movie and TV subscription service provider cautioned that its third quarter profits could take a hit, as the company is planning a massive international expansion into six European countries beginning in September.
- In an effort to keep shareholders happy, Allergan is planning a series of layoffs that will cut about 13 percent of the drug maker’s workforce. The company is working to fend off a takeover from Valeant Pharmaceuticals and has said the spending cuts are necessary in order to help Allergan move forward on its own.
- With the death toll in Gaza up to a staggering 571 as of Monday, the U.S. has begun to push for an immediate ceasefire. Secretary of State John Kerry is on his way to Cairo, where he will begin talks and hopefully come to an agreement with both sides to end the fighting. Israeli troops are working to destroy cross-border tunnels, but the fighting is increasingly affecting civilians with reports that about 150 of those killed were children.
Asian markets were mostly higher; the NIKKEI gained 0.84 percent, the Shanghai composite was up 1.02 percent, the Shenzhen composite rose 1.31 percent, the Hang Seng index gained 1.69 percent and the KOSPI was up 0.52 percent.
European markets started the day on a high note with the region’s indexes up across the board. The FTSE rose 0.82 percent, the STOXX 600 was up 0.89 percent, the DAX gained 0.80 percent and the CAC 40 was up 0.86 percent.
Energy futures were higher; Brent futures gained 0.34 percent and WTI futures were up 0.51 percent. Gold and silver were down 0.43 percent and 0.37 percent respectively, while industrial metals rose across the board. Copper was up 0.42 percent, aluminum gained 1.97 percent and zinc was up 1.83 percent.
The euro was lower against the dollar, trading at $1.3481. The common currency also fell 0.15 percent against the yen and 0.23 percent against the pound. The dollar gained 0.14 percent against the yen and 0.36 percent against the franc, but lost 0.06 percent against the pound and 0.21 percent against the Australian dollar.
Notable earnings released on Monday included:
- Netflix (NASDAQ: NFLX) reported second quarter EPS of $1.15 on revenue of $1.34 billion, compared to last year’s EPS of $0.49 on revenue of $1.07 billion.
- Halliburton Company (NYSE: HAL) reported second quarter EPS of $0.91 on revenue of $8.05 billion, compared to last year’s EPS of $0.73 on revenue of $7.32 billion.
- BB&T Corporation (NYSE: BBT) reported second quarter EPS of $0.58 on revenue of $2.30 billion, compared to last year’s EPS of $0.77 on revenue of $2.50 billion.
- SunTrust Banks (NYSE: STI) reported second quarter EPS of $0.81 on revenue of $2.20 billion, compared to last year’s EPS of $0.68 on revenue of $2.10 billion.
Stocks moving in the PreMarket included:
- Apple (NASDAQ: AAPL) was up 0.88 percent in premarket trade after losing 2.60 percent over the past week.
- Perrigo Company (NYSE: PRGO) rose 0.71 percent in premarket trade after falling 2.40 percent on Monday.
- Amazon.com (NASDAQ: AMZN) was down 1.21 percent in premarket trade after gaining 1.25 percent over the past five days.
- AbbVie (NYSE: ABBV) fell 0.93 percent in premarket trade after losing 1.66 percent on Monday.
Notable earnings releases expected on Tuesday include:
- McDonald’s (NYSE: MCD) is expected to report second quarter EPS of $1.44 on revenue of $7.28 billion, compared to last year’s EPS of $1.38 on revenue of $7.08 billion.
- Microsoft (NASDAQ: MSFT) is expected to report fourth quarter EPS of $0.61 on revenue of $23.11 billion, compared to last year’s EPS of $0.66 on revenue of $19.93 billion.
- Coca-Cola Company (NYSE: KO) is expected to report second quarter EPS of $0.63 on revenue of $12.82 billion, compared to last year’s EPS of $0.63 on revenue of $12.75 billion.
- Verizon Communications (NYSE: VZ) is expected to report second quarter EPS of $0.91 on revenue of $31.05 billion, compared to last year’s EPS of $0.73 on revenue of $29.79 billion.
Tuesday’s economic calendar will be dominated by U.S. data including U.S. CPI, chain store sales, existing home sales and the Redbook.
For a recap of Monday’s market action, click here.
Tune into Benzinga’s #PreMarket Prep today to hear Nic Chahine, Dave Landry, Michael Hewson & Eric Marshall by clicking here!
See more from Benzinga
- #PreMarket Primer: Monday, July 21: West Warns Russia 'For The Last Time'
- Benzinga Weekly Preview: Earnings Season Continues With Geopolitical Tensions As A Backdrop
- #PreMarket Primer: Friday, July 18: Tension Between Russia And The West At An All Time High
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