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10 Things You Need To Know Before Tuesday’s Opening Bell

Overseas markets mostly higher, and the shutdown continues


Good morning! Here’s what you need to know.

  • Markets were mostly higher around the world. Korea’s Kospi was up 1.02%. Japan’s Nikkei climbed 0.26%. London’s FTSE was leading European markets at 0.80%. US futures are up very modestly.
  • Day 15 of the government shutdown begins today. Many House Republicans are balking at the latest deal being drafted in the Senate, which would fund the government through Jan. 15 and raise the debt ceiling through mid-February. From our Brett LoGiurato: “Sources close to Boehner have given no inclination as to whether he’s leaning a certain way. A Democratic Senate aide told Business Insider earlier Monday that it’s up to McConnell to sell the deal to Boehner — no sure thing. ‘Our job is to get the best deal we can get that House Dems can support,’ the aide said.”
  • We get a reprieve from the econ data deadzone created by the shutdown as the New York Fed releases its latest Empire State Manufacturing Survey. Economists estimate it will rise to 7.0 in October from 6.3 in September. “With the headline number based on general conditions rather than on direct activity measures, a pickup in October seems unlikely given only moderate economic growth and the government shutdown and debt ceiling debate’s potential to weigh on business sentiment,” warned Wells Fargo’s (WFC) John Silvia.
  • By happy coincidence, a start-up backed by Google (GOOG) Ventures and Andreessen Horowitz that hopes to transform real-time economic data will launch today, the Wall Street Journal’s Sudeep Reddy reports. The operations of the firm, Premise, seem ambitious: “Premise has deployed 700 smartphone-equipped workers across 25 cities to capture images of products as their prices change daily. Software automatically tags the location of the products down to the individual store and analyzes the images—items such as meat and produce—to gauge quality differences. A user viewing the information can zoom in on images of the products at each retail location, making it a store-shelf version of Google Street View.”
  • It’s a big earnings day: Citigroup (C) ($1.04/share expected) Coke (KO) (53 cents per share expected), Intel (INTC) (53 cents per share expected), and Yahoo! (YHOO) (33 cents per share expected) all report today. BTIG’s Dan Greenhaus has a new note out arguing stocks have mostly carried their 2013 momentum through the crisis in Washington: “Despite broader concerns about Washington, equities in general have recouped almost all of the modest losses; the Russell 2000 stands at a new record high, the Nasdaq is all but at its post crisis high and the S&P 500 stands just shy of making the same claim. Admittedly, some sectors did have difficulties today. Household durables suffered from weakness in homebuilders and WHR, mortgage REITs traded lower on average and EXPE’s troubles worsened after a downgrade (TDC got hit hard after the close after lowering guidance). But generally it’s been a fairly positive four days.”
  • In what seems to be a huge poach, Apple (AAPL) has hired Burberry’s CEO to be its new SVP for retail and online stores. Burberry shares trading in London were off -4% on the news.
  • German economic sentiment hit its highest reading since April 2010. The Zew centre for European economic research index rose 3.2 points for October to 52.8. The DAX had already hit a record high earlier in the day. But sentiment for the broader Eurozone decreased.
  • The UK’s home price index hit a record high, surpassing their Jan. 2008 peak, driven largely by an 8.7% YOY increase in London. British inflation data missed expectations, holding at 2.7% versus 2.6% expected.
  • A new study from Macroeconomic Advisers says sham crises in Washington like the fiscal cliff and the current shutdown have robbed Americans of about one million jobs. “Partisan divided government has failed to address our long-term fiscal challenges sensibly, instead encouraging policy that is short-sighted, arbitrary, and driven by calendar-based crises,” said Joel Prakken of Macroeconomic Advisers. “Based on this report’s findings, we can assert confidently that the crisis-driven fiscal policies of the last several years have damaged our still-struggling economy. One can only hope that our policymakers will implement more sensible policy in the future.”
  • Japan’ conglomerate took a 51% stake worth $1.5 billion in a Finnish gaming firm offering two popular “freemium” games similar to Candy Crush. The FT says this “confirms the dizzying rise of the Finnish mobile gaming company.”

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