Wall Street's bravado even in the face of the lingering macroeconomic concerns seems to be slowly giving way to fears as the European Union summit looms ahead. The index futures point to a modestly negative opening on Wall Street following the bargain hunting induced rebound yesterday. Along with the European preoccupation, traders may also closely watch the U.S. existing home sales report due to be released shortly after the markets open.
As of 6:30 am ET, the Dow futures are slipping 21 points, the S&P 500 futures are receding 2.10 points and the Nasdaq 100 futures are moving down 4 points.
U.S. stocks snapped a six-session losing streak, primarily due to a technical rebound rather than due to fundamental strength.
On the economic front, the National Association of Realtors is scheduled to release its report on existing home sales for April at 10 am ET. Economists estimate existing home sales of 4.66 million for the month after sales fell 2.6 percent month-over-month to an annualized rate of 4.48 million units in March.
In corporate news,
EMC (EMC) announced that it has acquired privately held cloud-based management solutions provider Syncplicity. The company did not reveal the terms of the deal.
Nordson (NDSN) reported second quarter earnings of 80 cents per share, which included a charge of 4 cents per share, on sales of $315 million. For the third quarter, the company expects earnings of 96 cents to $1.04 per share. The second quarter results were below estimates, while the third quarter guidance exceeded expectations.
Williams-Sonoma (WSM) reported first quarter non-GAAP earnings of 34 cents per share on net revenues of $818 million, up 6.1 percent year-over-year. For the second quarter, the company expects net revenues of $850 million to $870 million and for the full year, net revenues are expected at $3.95 billion to $4.02 billion. The company estimates non-GAAP earnings of 38-41 cents per share for the second quarter and $2.42-$2.49 per share for the full year. The results exceeded estimates, while the guidance surrounded the consensus estimates.
Analog Devices (ADI), Collective Brands (PSS), Compuware (CPWR), Dell (DELL), Guess (GES), Take-Two (TTWO) and West Seal (WTSLA) are among the companies due to report their quarterly results after the markets close.
The major Asian markets latched on to the positive lead from Wall Street, with stocks rebounding from their multi-month lows. The Indonesian market led the gains in the region, with the Jakarta Composite Index leading the gains with a 2.06 percent advance.
Japan's Nikkei 225 average opened higher and moved sideways for the rest of the session before closing up 95.40 points or 1.10 percent at 8,729. Apart from the global cues, stocks also got some support from a weaker yen.
The Bank of Japan's is sitting for a 2-day monetary policy meeting today. The yen has been seeing weakness on expectations that the central bank will embark on another round of quantitative easing.
Australia's All Ordinaries added 49.10 points or 1.19 percent before closing at 4,174 and Hong Kong's Hang Seng Index settled at 19,039, up 116.83 points or 0.62 percent.
The major European averages are advancing, with all the major averages trading with moderate gains. Underlying sentiment is likely to remain cautious as the European Union summit scheduled for Wednesday.
In corporate news, U.K. telecom giant Vodafone ((VOD) reported a decline in its full year EBITDA even as pre-tax profits rose marginally. On an adjusted basis, pre-tax profits declined. The company also trimmed its adjusted operating profit outlook for the next fiscal, citing weakness in Europe.
U.K. department store Marks & Spencer lowered its sales guidance after reporting a drop in its full year pre-tax profit.
The OECD lowered its economic outlook for the eurozone, with the organization now expecting a 0.1 percent contraction in 2012 compared to the 0.2 percent growth it estimated earlier.
The inflation report released by the Office for National Statistics showed that U.K.'s core annual inflation slowed to 2.1 percent compared to the 2 percent expected by economists.
Spain auctioned treasury bills, with the embattled nation successful in raising debt at the higher end of its target. That said, the borrowing costs increased compared to the previous auction.
by RTT Staff Writer
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