Stocks are indicated slightly lower this morning after pulling
back from record highs yesterday.
S&P 500 futures are down less than 0.2 percent. Europe is mixed
but has been working its way higher in the last hour, led by
high-beta countries such as Italy and Spain. Asian markets fell in
the overnight session as Tokyo and Shanghai shed about 1 percent.
The S&P 500 fell half a percent yesterday, marking only its
third decline in the last 16 sessions. The drop came after the
Federal Reserve left monetary stimulus in place but sounded less
concerned about economic weakness. That caused investors to
speculate that policy makers are getting ready to let interest
rates go higher.
Today's calendar returns focus to corporate earnings, with major
companies such as Exxon Mobil, ConocoPhillips, Cigna, and
MasterCard scheduled to report this morning. American International
Group follows in the afternoon. Companies that have seen bullish
option paper recently such as Kodiak Oil & Gas and Mohawk
Industries also report after the closing bell.
Facebook will likely be active today after announcing
better-than-expected profit and revenue yesterday afternoon. It
initially surged about 10 percent in extended hours but then
surrendered gains after saying it didn't plan to push advertising
more aggressively. Expedia and Intersil also rallied on strong
Alcatel-Lucent climbed 13 percent after continuing to signs of a
successful turnaround. Visa, however, is down more than 3 percent
after missing estimates.
Initial jobless claims at 8:30 a.m. ET and the Chicago Purchasing
Managers Index at 9:45 a.m. ET are the only two economic releases
on the agenda. Attention will turn to the global macro economy
tomorrow, with the Institute for Supply Management's pivotal
manufacturing index coming out in the morning, followed by European
and Chinese manufacturing data on Monday. The first estimate of
U.S. third-quarter economic growth will be released next Thursday,
Commodities are modestly bearish, with oil and copper falling less
than 1 percent. Gold and silver are down 1 percent and 3 percent
respectively after the Fed's statement. Foreign-exchange markets
reflect a similar tone as the euro falls and the safe-haven
Japanese yen rallies across the board.