Pre-Market Primer: Stocks Fall on Taper Fears; Tesla Motors and Groupon Inc Earnings on Tap


Wall Street may be headed for another day of losses as Federal Reserve members struck a hawkish tone and global equities declined.

Stock futures were lower ahead of the opening bell. Dow (INDEXDJX:.DJI) futures were down 0.36% at 15,418. Futures contracts on the S&P 500 (INDEXSP:.INX) sank 0.35% to 1,688.00 and Nasdaq (INDEXNASDAQ:.IXIC) futures fell 0.26% to 3,109.75.

Chicago Fed President Charles Evans spooked investors yesterday when he said he would "clearly not rule out" winding down asset purchases as soon as September. Evans is usually seen as a more dovish Fed chief. Today, the Philadelphia Fed's Charles Plosser and Cleveland's Sandra Pianalto will both deliver speeches.

Evans' comments battered global stocks. Japan's Nikkei (INDEXNIKKEI:NI225) fell 4% as the dollar strengthened against the yen. Hong Kong's Hang Seng (INDEXHANGSENG:HSI) also dropped 1.53% on Wednesday.

Major european stock indices are also solidly in the red, led by Britain's FTSE (INDEXFTSE:UKX). Today, the Bank of England announced that it will tie interest rates to unemployment. It will keep rates low until the jobless rate falls below 7%, but this threshold is not set in stone. As the jobless rate is currently 7.8%, rates will remain at the record low of 0.5%.

After the closing bell today, several major firms will report quarterly earnings. Tesla ( TSLA ) is expected to report $0.19 per share in earnings with $387.9 million in revenue. The automaker launched in several European markets over the quarter, and those expenses could weigh on it.

Groupon ( GRPN ) will also report after the bell. Analysts expect adjusted profit of $0.04 per share on $594 million in sales. Data from comScore, which tracks Web traffic, showed that Groupon's visitors increased by 7% over the quarter after declining in the first three months of the year. The company still lacks a permanent CEO after founder Andrew Mason was ousted.

Time Warner ( TWX ) net profit increased by 87% in the second quarter, thanks in part to successful movies such as Man of Steel and The Hangover Part III . Adjusted earnings per share of $0.83 beat Wall Street's expectations.

Twitter: @vincent_trivett

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.

This article appears in: Investing , Stocks

Referenced Stocks: GRPN , TSLA , TWX



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