Market Preview: Let's Make a Deal
"Moreover, while the details of whatever agreement is reached to resolve the fiscal cliff are important, the economic confidence of both market participants and the general public likely will also be influenced by the extent to which our political system proves able to deliver a reasonable solution with a minimum of uncertainty and delay," he said. "Finding long-term solutions that can win sufficient political support to be enacted may take some time, but meaningful progress toward this end can be achieved now if policymakers are willing to think creatively and work together constructively."
As for Wednesday's scheduled news, it's a slow earnings day ahead of the Thanksgiving holiday on Thursday. Deere(DE) is really the only name brand that's slated to open its books, and Wall Street is looking for a profit of $1.88 a share from the agricultural equipment maker in its fiscal fourth quarter ended in October on revenue of $8.85 billion.
Shares of Moline, Ill.-based Deere are up roughly 11% so far in 2012, though the stock's 52-week high of $89.70 dates back to Feb. 14. Since hitting a low for the past year of $69.51 on June 4, the shares have appreciated nearly 24% based on Tuesday's close at $86.
With a forward price-to-earnings ratio of 10.3X, the stock is still relatively cheap, and at least one prominent investor bought in last quarter as Warren Buffett's Berkshire Hathaway(BRK.B) revealed a new stake of 3.98 million Deere shares in a recent filing with the Securities and Exchange Commission.
Deere seven-quarter streak of quarterly profit surprises last time around but still delivered year-over-year revenue growth of 15%. For the fourth quarter, it forecast a 13% increase in company equipment sales and said some "caution" was warranted about the coming months because of uncertain global economic conditions and dryness in several key markets.
The sell side is slightly bearish ahead of the print with 11 of the 21 analysts covering the stock at either hold (9) or underperform (2) and the 12-month median price target sitting at $90.
Check out TheStreet's quote page for Deere for year-to-date share performance, analyst ratings, earnings estimates and much more.