Stocks are set to erase some of yesterday's losses as investors
await consumer confidence and housing figures.
After declining yesterday,
(INDEXDJX:.DJI) futures were up 0.13% at 15,503 before the opening
bell. Futures contracts on the
(INDEXSP:.INX) rose 0.20% to 1,685.80 and
(INDEXNASDAQ:.IXIC) futures climbed 0.30% to 3,074.75.
Later this morning, the May Case-Shiller Home Price Index is
expected to print a 1.3% monthly rise in the 20 cities that it
tracks. Home prices were up 12.3% from the year earlier. Consumer
confidence, a major leading indicator of retail sales, is expected
to decline 0.4 points to 81 in July.
On the corporate front,
) reported that losses increased in the second quarter. The telco's
net loss widened to $1.6 billion from $1.4 billion a year ago,
including charges related to shuttering Nextel. Excluding one-time
items, Sprint shares rose 2.3% in the pre-market.
) shares are up just slightly this morning as its adjusted earnings
per share rose 10% to $4 billion, or $0.56 per share. This exceeded
expectations, but revenue missed, declining 7% to $13 billion. The
drug maker said yesterday that it will reorganize into two branded
drug businesses and a generic drugs unit as well. It also expects
to buy back "in the mid-teens of billions of dollars" in stock this
), the multi-level marketer that hedge fund investor Bill Ackman
targets in a short, rallied 6.5% in pre-market trading after
reporting a record second quarter. Earnings per share were $1.41
and management raised its EPS outlook for fiscal 2013 to
Stocks in Europe and Asia also rose on Tuesday. Japan released a
bevy of economic reports overnight. Industrial output unexpectedly
fell 3.3% between May and June, or 3.6% from June 2012. A 1.7% fall
was anticipated. Household expenditures fell 0.4% from a year
before and the unemployment rate ticked down 0.2 percentage points
to 3.9%. Japanese shares rose, however. The
(INDEXNIKKEI:NI225) gained 1.53%.
Eurozone economic sentiment rose to a 15-month high of 92.5 in
July. Construction was the only sector to see confidence fall
across the region. While the survey showed that consumers and
businesses are less pessimistic, consumers are still too nervous to
Spain reported its eighth-straight quarter of negative GDP growth.
In the past quarter, GDP in the country fell 0.1%.
Sweden unexpectedly reported that its economy fell into a
contraction in the second quarter. After expanding 0.6% in the
first three months of the year, Sweden shrank 0.1% in the June
Italy is currently awaiting the verdict in the tax fraud trial
against Silvio Berlusconi. If Berlusconi is convicted, he will be
prevented from holding office, and the ruling coalition could
The Federal Reserve begins its two-day policy meeting today.
Experts expect no change in either interest rates or tapering of
its $85 billion monthly diet of asset purchases. The big focus
tomorrow will be on the US economy, as we get a newly-recalculated
GDP report and ADP's private sector payrolls report, a good preview
for Friday's BLS report.