Wall Street is attempting to stage a rebound following three consecutive sessions of losses, although economic and earnings concerns continue to haunt markets. Apple's results came as a big disappointment to the markets accustomed to its fair and square earnings beat. The U.K. preliminary second quarter GDP was another disappointment, as the economy sunk deeper into recession territory. Apart from the earnings catalysts, traders may also focus on the U.S. new home sales report due to be released shortly after the markets open.
As of 6:15 am ET, the Dow futures are rising 33 points and the S&P 500 futures are gaining 3.70 points, while the Nasdaq 100 futures are moving down 12 points.
U.S. stocks declined for the third straight day on Wednesday, as lukewarm earnings reports and euro anxieties continued to weigh on sentiment.
On the economic front, the Commerce Department is due to release its new home sales report for June at 10 am ET. The consensus estimate calls for new homes sales of 370,000 after sales rose 7.6 percent to 369,000 in May.
The Energy Information Administration is scheduled to release its weekly petroleum inventory report for the week ended July 20th at 10:30 am ET.
In corporate news, Apple reported third quarter results that trailed estimates, while its guidance was also lackluster. Altera's (ALTR) second quarter results beat estimates and its third quarter revenue guidance was positive.
Linear Technology (LLTC) reported fourth quarter non-GAAP earnings of 50 cents per share, down from 76 cents per share last year. Revenues fell to $330.01 million. Broadcom (BRCM) reported second quarter non-GAAP earnings of 72 cents per share on revenues of $1.97 billion. The results were ahead of estimates.
Netflix (NFLX) reported fourth quarter earnings and revenues that exceeded estimates. Meanwhile, the company cautioned that it may be tough to meet its U.S. streaming subscriber addition target for the year unless third quarter subscriber growth is strong.
Although Juniper's (JNPR) second quarter results better estimates, it issued a weak outlook. RF Micro Devices also reported better than expected first quarter results, while it issued a bleak outlook.
Rock-Tenn (RKT) reported third quarter adjusted earnings of 95 cents per share, lower than $1.25 per share last year. Net sales improved to $2.30 billion. The results were below estimates.
Akamai Technology (AKAM), Western Digital (WDC), Visa (V), Symantec (SYMC), Ruby Tuesday (RT), RailAmerica (RA), LSI Logic (LSI), Logitech (LOGI), Las Vegas Sands (LVS), Flextronics (FLEX), Everest Re (RE), Crocs (CROX), Cliffs Natural (CLF), Citrix Systems (CSX) and Cheesecake Factory (CAKE) are among the notable companies due to release their earnings after the markets close.
The major Asian markets ended lower, led by Japan and South Korea, as there was no respite from the economic worries haunting the markets.
Japan's Nikkei 225 average closed down 122.19 points or 1.44 percent at 8,366, its lowest closing level since June 4th. The index was down for the fourth straight session. The tech pack came under selling pressure following Apple's disappointing results, with Sharp and Toshiba shedding 10.03 percent and 7.28 percent, respectively.
Australia's All Ordinaries ended down 9.80 points or 0.24 percent at 4,151 after trading as low as 4,114 in intra-day trading. Hong Kong's Hang Seng Index slid 25.87 points or 0.14 percent before closing at 18,877.
In economic news, a report released by Japan's Ministry of Finance showed that the nation recorded a trade surplus of 61.7 billion yen in June compared to expectations for a deficit of 140 billion yen. Inflationary pressure in Australia eased in the June quarter, according to a report released by the Reserve Bank of Australia.
The major European markets are modestly higher after three days of losses. The gains are despite the lingering debt concerns, mixed earnings and a couple of weak domestic economic data.
A preliminary report released by the U.K. Office for National Statistics showed that the U.K. economy contracted by 0.7 percent sequentially in the second quarter, the steepest decline since the first quarter of 2009. A survey by Ifo Institute showed that its business confidence index for Germany fell to 103.3 in July from 105.2 in June, marking the third straight month of decline. Economists had expected a more modest drop to 104.5.
In corporate news, Arcelor Mittal (MT) saw a decline in its second quarter profits and also warned of tough operating conditions in the second half of the year.
French carmaker Peugeot reported a sharp decline in its first half profits to 4 million euros from 1.16 billion euros last year, while revenues declined 5.1 percent. Germany's Daimler also reported lower second quarter profits, although it maintained its full year earnings outlook.
Budget airline easyJet reported third quarter revenues that rose 10.5 percent to 1.03 billion pounds and also issued fairly upbeat profit guidance. Chipmaker ARM Holdings (ARMH) reported a 23 percent increase in its adjusted pre-tax profit, while its sales growth was also solid.
by RTT Staff Writer
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