#PreMarket Primer: Monday, November 10: Nuclear Talks Enter Second Day

Nuclear talks were set to continue for another day on Monday as the U.S. and the European Union tried to come to an agreement with Iran about the country’s nuclear capabilities.

World powers and Iran have set a November 24 deadline to come up with a comprehensive, long-term agreement about Tehran’s uranium enrichment facilities, but the long-debated issue will not be easy to resolve.

The two have been working to find common ground for more than a decade, with the West concerned about Iran’s ability to develop nuclear weapons and Iran’s insistence that its nuclear research has been used only to develop new sources of energy.

If an agreement is reached, the U.S. has promised to lift the sanctions on Iranian oil, something that would give the Middle Eastern nation’s economy a boost.
Top News
In other news around the markets:

Ceasefire In Ukraine Likely To Crumble

The ceasefire in Ukraine looked likely to fall apart over the weekend after the separatist-held city of Donetsk was hit with its worst shelling in a month. Ukrainian officials reported seeing troops with no clear markings, something Kiev has said proves that Russia is sending troops across the border to support the rebels. Moscow has maintained that it was not sending troops, but Kiev claims that at least 32 tanks and several truckloads of troops have come across the border over the past few days.

More Legal Issues Ahead For General Motors 

General Motors Company GM is in for more legal trouble as The Wall Street Journal reported that the company’s email chain shows that it ordered replacements for its faulty ignition switches nearly two months before alerting regulators.The switches have been linked to 30 deaths and called attention to auto safety and the car manufacturer's timeliness in addressing safety concerns.

Johnson & Johnson Looks To China For Growth

Johnson & Johnson JNJ is looking to grow its pharmaceutical business in China by treating the most common diseases despite the nation’s current economic struggles. Though the Chinese economy is slowing, Johnson & Johnson CEO Alex Gorsky said in an interview that the population’s growing access to health care presented an appealing opportunity.

U.S. Releases Encouraing Employment Data

Data out on Friday showed that the U.S. economy is on track for a solid recovery as the labor market continued to improve moderately. The non-farm payrolls report showed that U.S. employers added 214,000 new jobs in October, while the unemployment rate fell to 5.8 percent, a six-year low. Although the payrolls figure was below expectations, it marked the ninth straight month of more than 200,000 new jobs, an encouraging streak.

Asian Markets
Asian markets were mostly higher, with the exception of the NIKKEI, which lost 0.59 percent. The Shanghai composite was up 2.27 percent, the KOSPI gained 0.95 percent, the Shenzhen composite was up 1.11 percent and the Hang Seng index rose 0.83 percent.
European Markets
European markets began the day on a high note; the FTSE rose 0.43 percent, the STOXX 600 was up 0.30 percent, the DAX gained 0.23 percent and the CAC 40 was up 0.54 percent.
Commodities
Geopolitical tension helped boost energy prices. Brent futures gained 0.52 percent and WTI futures were up 0.38 percent. Gold and silver gained 0.17 percent and 0.01 percent, respectively, and industrial metals were also higher with the exception of aluminum, which fell 1.01 percent. Copper gained 0.20 percent, zinc rose 0.81 percent and tin was up 1.30 percent.
Currencies
The euro made its way moderately higher on Monday, trading at $1.2478. The common currency gained 0.14 percent against the pound, but lost 0.05 percent against the franc and 0.22 percent against the yen. The dollar was also lower against the yen, down 0.40 percent, and fell 0.13 percent against the pound and 0.42 percent against the Australian dollar.
Earnings
Notable reports released on Friday included:

• Humana Inc HUM reported third quarter EPS of $1.85, compared to last year’s EPS of $2.31 on revenue of $10.32 billion.
• Brookfield Asset Management Inc. BAM reported third quarter EPS of $0.83, compared to last year’s EPS of $0.45 on revenue of $5.18 billion.
• Buckeye Partners, L.P. BPL reported third quarter EPS of $0.89, compared to last year’s EPS of $0.72 on revenue of $1.09 billion.
• E.W. Scripps Co SSP reported third quarter EPS of $0.02 on revenue of $207.60 million, compared to last year’s loss of $0.16 on revenue of $189.54 million.

#PreMarket Movers

Stocks moving in the #PreMarket included:

• Tenet Healthcare Corp THC was up 1.17 percent in premarket trade after losing 14.63 percent over the past week.
• JPMorgan Chase & Co. JPM was up 0.16 percent in premarket trade after rising 1.64 percent over the past week.
• Apple Inc. AAPL was down 0.01 percent in premarket trade after gaining 0.29 percent on Friday.

Earnings
Notable releases expected on Monday include:

• Transocean LTD RIG is expected to report third quarter EPS of $0.83 on revenue of $2.20 billion, compared to last year’s EPS of $1.37 on revenue of $2.56 billion.
• Dean Foods Co DF is expected to report a third quarter loss of $0.13 on revenue of $2.35 billion, compared to last year’s EPS of $0.12 on revenue of $2.20 billion.
• Caesars Entertainment Corp CZR is expected to report a third quarter loss of $1.47 on revenue of $2.24 billion, compared to last year’s loss of $6.03 on revenue of $2.18 billion.
• WhiteWave Foods Co WWAV is expected to report third quarter EPS of $0.26 on revenue of $843.02 million, compared to last year’s loss of $0.19 on revenue of $638.52 million.

Economics
Notable economic releases expected on Monday include eurozone investor confidence, Italian industrial production and the Japanese current account.
For a recap of last week’s market action, click here.
Tune in to Benzinga’s #PreMarket info show with Kenny Polcari, Timothy Hooker & Brad Thomas here.