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Wall Street Harping On Greek Political Woes


Sentiment seems to be faltering on Tuesday after U.S. stocks braved the onslaught of European concerns yesterday. As a political uncertainty faced by Greece intensifies, doubts concerning the nation's ability to fix its fiscal problems have increased. Barring a couple of Fed speeches scheduled for the day, there is not much by way of trading cues for the market. Technically, the Dow Industrials has breached its 21 and 50-day moving averages and it remains to be seen of it can hold support around the 12,920 levels.

As of 6:30 am ET, the Dow futures are slipping 72 points, the S&P 500 futures are receding 7.60 points and the Nasdaq 100 futures are moving down 18 points.

On the economic front, Richmond Federal Reserve President Jeffrey Lacker is due to hold a roundtable discussion with Guilfod Technical Community College students, in Greensboro, North Carolina at 9:45 am ET. Dallas Federal Reserve President Richard Fisher will speak to a business audience at the "Growth DFW" event sponsored by the Dallas Convention & Visitors Bureau and the Dallas Regional Chamber at 1:45 pm ET.

In corporate news, Electronic Arts' (ERTS) fourth quarter results exceeded expectations. While the company's first quarter guidance was below estimates, its 2013 guidance was upbeat.

Vornado Realty (VNO) reported first quarter adjusted funds from operations were $1.81 per share, higher than $1.73 per share last year. Revenues were almost flat at $727.47 million. The results exceeded estimates.

Dun & Bradstreet (DNB) said its adjusted first quarter earnings rose to $1.35 per share from $1.29 per share in the year-ago period. Core revenues rose 1 percent to $390.1 million. For the full year, the company lowered its core revenue growth forecast to 0-3 percent from 3-5 percent, while it expects adjusted earnings per share growth of 8-11 percent.

Wynn Resorts (WYNN) reported first quarter earnings and revenues that came below estimates.

Rackspace (RAX) reported first quarter earnings that missed estimates by a penny despite increasing year-over-year. Meanwhile, the company's revenues beat estimates.

Blue Nile (NILE), Chiquita Brands (CQB), Kinross Gold (KGC), Learning Tree (LTRE), Openwave (OPWV), Protective Life (PL), Walt Disney (DIS), XL Capital (XL) and W&T Offshore (WTI) are among some of the companies due to release their quarterly results after the markets closes.

U.S. stocks overcame fears triggered by the results of the elections in Greece and France and closed on a mixed note.

The Asian markets ended mixed after yesterday's dismal performance, although the mood appeared cautious.

Japan's Nikkei 225 average opened higher and traded mostly sideways before closing up 62.51 points or 0.69 percent at 9,182. Meanwhile, Australia's All Ordinaries remained mostly higher amid some volatility before closing up 14.30 points or 0.33 percent at 4,376.

A report released by the Australian Bureau of Statistics showed that the nation recorded a trade deficit of A$1.587 billion in March, more than double the deficit of A$754 million recorded for February. Economists estimated a more modest deficit of A$1.4 billion.

Hong Kong's Hang Seng Index retreated 51.90 points or 0.25 percent before closing at 20,485, while China's Shanghai Composite Index ended down 0.12 percent. India's Sensex retreated more than 2 percent.

The major European markets are trading lower amid the political uncertainty in Europe.

In corporate news, Norway's Statoil reported lower profits for its first quarter, as the year-ago quarter benefited from a one-time gain. Deutsche Post reported higher profits as freight volumes to developing countries improved. HSBC reported that its first quarter underlying pre-tax profits rose, thanks to solid support from its investment banking division and emerging market operations.

Munich Re reversed to a profit in its first quarter, as lower loss ratio and higher investment income helped boost bottom line. The company also reiterated its full year outlook. U.K. insurer Aviva announced the resignation of its CEO Andrew Moss, effective immediately.

Commodities are seeing sharp declines and riskier currencies are also moving to the downside.

by RTTNews Staff Writer

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