2/22/2012 6:38 AM ET
(RTTNews) - Wall Street's perch at elevated levels seems to be posing a downside threat, as indicated by the index futures, which point to a lower open on Wednesday. With concerns about Greece being successful in returning back to fiscal strength lingering, traders may be reluctant to take up fresh positions in overbought stocks. The trading direction of the session may largely hinge on some key earnings reports and a domestic housing data due for release shortly after the markets open.
In a disconcerting development, a survey showed that the Eurozone's private sector activity contracted. Meanwhile, Germany auctioned off 2-year notes at terms that were slightly tighter than at a previous auction in January.
As of 6:30 am ET, the Dow futures are down 12 points, the S&P 500 futures are slipping 2.10 points and the Nasdaq 100 futures are slipping 1.75 points.
U.S. stocks squandered much of the mid-session optimism and closed Tuesday's session mixed, as worries concerning Greece implementing severe austerity measures kept sentiment subdued amid the overbought levels of the market.
On the economic front, the National Association of Realtors is scheduled to release its report on existing home sales for January at 10 am ET. Economists estimate existing home sales of 4.69 million for the month, a modest increase from the 4.61 million units reported for the previous month.
Additionally, the results of the Treasury auction of 5-year notes are due at 1 pm ET.
In corporate news, Dell (DELL) reported fourth quarter earnings and revenues that trailed estimates and also issued below-consensus revenue growth guidance for the first quarter.
Luxury homebuilder Toll Brothers (TOL) reported a loss of 2 cents per share compared to a profit of 2 cents estimated by analysts. The revenues were also less than expected.
Brocade (BRCD) reported better than expected first quarter earnings and also issued in-line guidance for its second quarter. The company slightly raised the low and high end of its earnings guidance for the full year, which surrounds the consensus estimate.
Intuit's (INTU) second quarter adjusted earnings of 51 cents per share exceeded the 45 cents per share consensus estimate. Revenues were about in line with estimates.
La-Z-Boy (LZB) reported better than expected third quarter results.
Cheesecake Factory's (CAKE) fourth quarter results also exceeded estimates.
Johnson & Johnson (JNJ) announced the retirement of Bill Weldon from the post of CEO and the appointment of Alex Gorsky as its CEO, effective April 26th, 2012.
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