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.
Mylan (MYL) said at an investor meeting that it expects adjusted earnings of $2.30-$2.45 per share on revenues of $6.8 billion to $7.2 billion for 2012, while it also reaffirmed its 2013 adjusted earnings of $2.75 per share. The company's 2012 guidance surrounded the consensus estimates, while its 2013 earnings guidance was above estimates.
Chico's FAS (CHS), Dollar Tree (DLTR), Garmin (GRMN), MGM Resorts (MGM), TJX (TJX) and Zale (ZLC) are scheduled to report their quarterly results before the markets open.
Prominent among the companies due to release their results after the markets close include Analog Devices (ADI), DryShips (DRYS), Equity One (EQY), Fluor (FLR),
The major Asian markets ended broadly higher, with the Chinese and the Japanese markets pacing the gains. Meanwhile, the Indian, Indonesian, Malaysian, New Zealand and Singaporean markets closed lower. Higher commodity prices and the weakening of domestic currencies lent support. After some early apprehension, Japan's Nikkei 225 average advanced in the afternoon, as the yen weakened past the 80-yen level against the dollar. Export stocks capitalized on the yen's weakness and advanced solidly. The Nikkei 225 ended up 90.98 points or 0.96 percent at 9,554, representing the highest closing level in about 6-1/2 months.
Australia's All Ordinaries languished in the red till late afternoon trading before breaking above the unchanged line, yet closed merely up 3.90 points or 0.09 percent at 4,372.
Hong Kong's Hang Seng Index added 70.56 points or 0.33 percent before closing at 21,549.
In Europe, the unexpected contraction in Eurozone private sector activity generated negative sentiment, sending stocks lower. The French CAC 40 Index is declining 0.47 percent and the German DAX Index is slipping 1.04 percent, while the U.K.'s FTSE 100 Index is receding 0.43 percent.
France Telecom reduced its dividend and also backed off its earlier decision to buy back shares after reporting a drop in its fourth quarter profit and sales. Meanwhile, Schneider Electric reported an increase in its 2011 profits, which also were ahead expectations. Hotel operator Accor also reported solid 2011 results.
On the economic front, Markit Economics' survey revealed that private sector activity in the eurozone contracted in February, with the corresponding composite output index dipping below the '50' cut-off mark to 49.7. The data re-ignited concerns of a recession.
Crude oil futures are off their highs, although trading in the upper $105-a-barrel range, and gold futures are also pulling back, while the dollar has seen some strength.
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Business News
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.