By RTT News,
January 24, 2014, 06:32:00 AM EDT
(RTTNews.com) - Wall Street has preferred to stay cautious after yesterday's retreat following the re-ignition of growth concerns. The major U.S. index futures are pointing to a lower opening on Friday. Earlier in the global trading day, Asian stocks were hounded by an increase in risk aversion, while the European markets are also witnessing subdued sentiment. With the domestic economic calendar of the day literally empty, traders look ahead to another slew of earnings from companies, including Procter & Gamble, as they seek direction.
At 6:15 am ET, the Dow futures are receding 94 points, while the S&P 500 futures are slipping 11 points and the Nasdaq 100 futures are moving down 20.75 points.
U.S. stocks declined on Thursday, with weak Chinese manufacturing data serving to keep sentiment subdued.
There aren't any economic reports scheduled to be released for the day.
In corporate news, Microsoft (MSFT) reported second quarter non-GAAP earnings of 78 cents per share on GAAP revenues of $24.52 billion. The results exceeded estimates.
Starbucks (SBUX) reported first quarter earnings that exceeded estimates, while its revenues were below expectations. The company reaffirmed its 2014 guidance that calls for revenue growth in excess of 10 percent and comparable store sales growth in the mid-single digit. The company now expects earnings per share in the range of $2.59-$2.67 per share. The guidance was lukewarm.
Juniper Networks ( JNPR ) reported fourth quarter non-GAAP net income of 43 cents per share on revenues of $1.27 billion. For the first quarter, the company expects non-GAAP earnings of 27-30 cents per share on revenues of $1.12 billion to $1.16 billion. The results exceeded estimates and the guidance was in line. E*TRADE (ETFC) reported better than expected fourth quarter results.
International Game Technology ( IGT ) reported first quarter adjusted earnings of 25 cents per share on revenues of $541 million. The results trailed expectations. The company said it is unable to provide full year earnings guidance, citing items that are currently indeterminable now. That said, the company said it expects to hit the low end of its previously announced guidance, given the declining gross gaming revenue trends.
Maxim Integrated (MXIM) reported second quarter adjusted earnings of 36 cents per share on revenues of $620 million. For the second quarter, the company expects non-GAAP earnings of 37-41 cents per share on revenues of $590 million to $620 million. The results trailed expectations and the guidance was weak.
KLA-Tencor ( KLAC ) reported second quarter non-GAAP earnings of 83 cents per share on revenues of $705 million. The earnings and revenues were ahead of estimates.
Altera ( ALTR ) reported fourth quarter earnings of 31 cents per share on sales of $454.4 million. The results beat estimates. The company also said it expects first quarter sales to declined 2-6 percent sequentially, trailing estimates.
Compuware ( CPWR ) reported third quarter non-GAAP earnings of 17 cents per share on revenues of $250.5 million, down 2.9 percent year-over-year. The earnings were above estimates, while the revenues trailed expectations.
Most major Asian markets retreated following an increase in risk aversion amid fears concerning a slowdown in global growth. Meanwhile, the Chinese and the Taiwanese markets bucked the downtrend.
The Japanese market retreated notably as the yen firmed up on risk aversion. Japan's Nikkei 225 average opened lower and dipped sharply in early trading. After moving sideways in the morning, the index declined steadily in the afternoon session before closing down 304.33 points or 1.94 percent at 15,392. The market witnessed broad based weakness, with most yen-sensitive sectors moving to the downside.
Yaskawa Electric fell 6.45 percent and was the biggest decliners among the index components. Daiichi Sankyo fell over 6 percent after the FDA banned production from one of its Ranbaxy unit's plant in India.
Australia's All Ordinaries languished below the unchanged line for much of the session, barring a brief sojourn above the unchanged line in the mid-session. The index closed 21.20 points or 0.40 percent lower at 5,254. Most sector stocks declined, led by financial stocks. On the other hand, material and industrial stocks witnessed some strength.
Hong Kong's Hang Seng Index ended at 22,450, down 283.34 points or 1.25 percent, while China's Shanghai Composite Index added 12.21 points or 0.60 percent before closing at 5,254, as recent efforts to rein in money market rates continued to be market positive after retreat in reaction to weak manufacturing data.
In major corporate news from the region, Korean giant Samsung Electronics reported fourth quarter profits that increased at a notably slower rate than in the third quarter. The company also forecast weak performance for the first half of the current fiscal.
European stocks opened higher, but they have been seeing some volatility in early trading amid a lack of any market moving domestic catalysts. The averages are currently lower. The risk aversion in the markets is likely to keep sentiment subdued.
In economic news, U.K. mortgage approvals increased less than expected in December, figures released by the British Bankers' Association showed. The number of mortgages approved for house purchases rose to 46,521 from 45,394 in November.
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