GDP Revision Sends Futures Into Negative Territory; Nasdaq Holding Slim Gains on Apple Deal With China Mobile

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The futures market is marginally lower for the fifth consecutive day after a steep upward revision to Q3 GDP and upbeat initial jobless claims leaves the financial markets vulnerable now that the Fed has plenty of ammunition to reduce fiscal stimulus in early 2014. The Nasdaq, however, is holding onto a slim gain, bolstered by gains in Apple ( AAPL ) after the tech-giant's deal with China Mobile ( CHL ) to offer iPhones to the Chinese market was reportedly finalized.

Ahead of the morning's data, stock market participants retreated to the sidelines cautiously optimistic that this morning's data, specifically GDP, would eliminate any recent fears for the Fed to respond to better economic conditions. But the revision to Q3 GDP to 3.6% from 2.8% coupled with a 23,000 drop in claims sent futures back into negative territory.

And the lack of direction early this morning wasn't exclusive to the U.S. Global equity markets were also treading water, waiting for direction from the U.S. along with any indication that the European Central Bank might initiate quantitative easing similar to that in the U.S. to stimulate the sluggish European economy.

Early this morning, both the Bank of England and European Central Bank left their key lending rates unchanged at 0.25% and 0.50%, respectively. However, with French unemployment notching higher and Spanish industrial production contracting 0.8%, the ECB might be forced to introduce unique stimulus measures to avoid cutting the lending rate to 0%.

-Dow Jones Industrial down 0.19%

-S&P 500 futures down 0.04%

-Nasdaq 100 futures up 0.16%

SENTIMENT

Nikkei down 1.50%

Hang Seng down 0.07%

Shanghai Composite down 0.21%

FTSE-100 up 0.04%

DAX-30 up 0.07%

PRE-MARKET SECTOR WATCH

(+/-) Large cap tech: mixed

(+) Chip stocks: higher

(-) Software stocks: lower

(+/-) Hardware stocks: mixed

(+/-) Internet stocks: mixed

(-) Drug stocks: lower

(-) Financial stocks: lower

(-) Retail stocks: lower

(-) Industrial stocks: lower

(+) Airlines: higher

(+) Autos higher

UPSIDE MOVERS:

MEI (+23.6%) The company reported adjusted Q2 2014 income was $19.8 million, or $0.51 per share, compared with $5.0 million, or $0.13 per share, a year ago.

CONN (+16.71%) Q3 adjusted diluted earnings per share of $0.71 for the quarter. Consolidated revenues increased 50.6% over last year to $310.9 million versus the consensus for $0.64 per share on $291 million in revenue.

CBMX (+41.20%) The American College of Obstetricians and Gynecologists is now recommending chromosomal microarray analysis as the first-line genetic test in pregnancies showing fetal abnormalities on an ultrasound screen.

DOWNSIDE MOVERS:

TD, TD.TO (-1.52%) Reported Q4 adjusted earnings of C$1.90, below the analyst consensus of C$1.99 per share. Revenue was C$7 billion, vs. expectations of C$6.3 billion.

ARO (-4.06%) Reported weaker-than-expected Q3 results late Wednesday and expressed caution about its outlook.

LGP (-5.4%) Commences 3.1 million stock offering



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

Copyright (C) 2014 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.


This article appears in: Investing , Commodities

Referenced Stocks: AAPL , CHL

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