By RTT News,
January 31, 2014, 06:34:00 AM EDT
(RTTNews.com) - Wall Street stocks have reverted to its cautious mood following yesterday's solid rebound. The major U.S. index futures are pointing to a lower opening on Friday. Earlier in the global trading day, the few major Asian markets that were open for trading closed mixed amid light trading volumes, as most markets in the region were closed for the Lunar New Year holiday. The European stocks are currently lower after a volatile start. Sentiment domestically could hinge on reaction to mixed earnings reports and data on personal income and spending, consumer sentiment and regional manufacturing activity.
At 6:15 am ET, the Dow futures are slipping 85 points, the S&P 500 futures are declining 9.25 points and the Nasdaq 100 futures are moving down 7.25 points.
U.S. stocks staged a remarkable turnaround on Thursday, helped by some positive earnings and fairly in line fourth quarter GDP data.
On the economic front, the Commerce Department is scheduled to release its personal income and spending report for December at 8:30 am ET. Economists expect both personal income and spending to grow by 0.2 percent each in the month. Around the same time, the Labor Department is scheduled to release its employment cost index for the fourth quarter. The employment cost index is estimated to have increased by 0.4 percent, the same pace of increase as in the previous quarter.
MNI Indicators is due to release the results of its manufacturing survey for the Chicago region at 9:45 am ET. The consensus estimates call for a modest increase in the index to 59.5 in January from 59.1 in December. Reuters and the University of Michigan are scheduled to release the revised estimates for their consumer sentiment index for January at 9:55 am ET. Economists expect an upward revision to the index to 81 from the mid-month reading of 80.4.
In corporate news, Google ( GOOG ) reported fourth quarter adjusted earnings of $12.01 per share on revenues of $16.86 billion. The earnings were shy of estimates, while the revenues exceeded estimates.
Amazon ( AMZN ) reported fourth quarter earnings of 51 cents per share on net sales of $25.59 billion, up 20 percent. For the first quarter, the company expects an operating loss of $200 million to operating profit of $200 million on net sales of $18.2 billion to $19.9 billion. The results trailed expectations and the guidance was lackluster. Broadcom's ( BRCM ) fourth quarter results exceeded estimates. The company's first quarter revenue guidance was also in line. PMC-Sierra (PMCS) also reported better than expected fourth quarter results.
Celestica's ( CLS ) fourth quarter earnings beat estimates, while its revenues were shy of estimates. The company's first quarter earnings guidance was in line, while its revenue guidance was weak.
Wynn Resorts' (WYNN) fourth quarter results were better than expectations. Microchip Technology's ( MCHP ) third quarter results were better than expected. CSC (CSC) reported third quarter earnings from continuing operations of 98 cents per share on revenues of $3.23 billion, down 7 percent year-over-year. The results exceeded estimates and the revenues were in line. The company raised its earnings from continuing operations guidance for 2014 to $3.80-$3.90 per share.
The major Asian markets that were open for trading closed on a mixed note, with the Japanese market ending lower on the yen's rebound, while the Australian and New Zealand markets advanced. The Chinese, Hong Kong, Malaysian, Indonesian, Singaporean, Taiwanese and South Korean markets were closed for the Lunar New Year holiday.
Japan's Nikkei ended down 92.53 points or 0.62 percent at 14,915. Meanwhile, Australia's All Ordinaries added 5.70 points or 0.11 percent before closing at 5,205.
On the economic front, a slew of data released from Japan showed that efforts initiated by the Japanese government to fight deflation is slowing and steadily coming to fruition. The Ministry of Economy, Trade and Industry showed that industrial production in Japan rose 1.1 percent in December following a 0.1 percent increase in November. Economists expected a 1.3 percent for the month.
A Ministry of Internal Affairs and Communication report showed that core consumer prices in Japan rose 1.3 percent annually in December compared to expectations for a 1.2 percent increase. A separate report showed that the jobless rate came in at 3.7 percent, better than the 3.9 percent rate expected by economists. Additionally household spending rose 0.7 percent year-over-year in December compared to expectations for a 1.1 percent increase.
The Ministry of Land, Infrastructure, Transport and Tourism reported that housing starts rose 18 percent year-over-year in December, faster than the 14.1 percent rate in November and the 13.6 percent rate expected by economists.
European stocks have seen some volatility in early trading, as traders remained cautious ahead of the U.S. data due to be released later in the day. The lack of any major domestic data has also rendered the mood cautious. Currently, the averages are lower.
On the economic front, the results of a survey by the GfK NOP showed that consumer confidence rose to -7 in December from -13 in November. A report released by the German Federal Statistical Office showed that German retail sales fell unexpectedly in December. Retail sales fell 2.5 percent month-over-month, contrasting expectations for a 0.2 percent increase.
The eurozone inflation rate fell unexpectedly in January, the European Union's statistics office Eurostat reported, adding pressure on the European Central Bank to act more decisively to thwart deflation. Consumer prices dropped 0.7% in the month, down from 0.8 percent the month before. Another report showed that the jobless rate in the currency bloc remained unchanged at 12 percent in December.
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