By RTT News, October 23, 2013, 06:31:00 AM EDT
(RTTNews.com) - Sentiment on Wall Street seems to have taken a turn for the worse, as traders look beyond their initial optimism concerning an extended stimulatory monetary policy environment. The recent gains notched up by the markets could make traders wary as they focus on the unfinished agenda of bringing the economy on track for sustainable economic growth, especially with the fiscal risk looming ahead due to the transitory nature of the solution arrived at by lawmakers. The domestic markets may also focus on another batch of earnings reports from companies such as Boeing ( BA ) and Bristol-Myers Squibb (BMY).
At 6:15 am ET, the Dow futures are slipping 74 points, the S&P 500 futures are moving down 10 points and the Nasdaq 100 futures are declining 19.50 points.
U.S. stocks advanced on Tuesday, thanks to soft payrolls data that brightened the possibility of the Fed delaying the withdrawal of stimulus.
On the economic front, the Labor Department is scheduled to release its report on export and import prices for September at 8:30 am ET. Economists estimate a 0.1 percent month-over-month drop in export prices, while import prices may have risen 0.2 percent.
The Federal House Finance Agency is due to release its house price index for August at 9 am ET. The consensus estimates call for a 0.8 percent month-over-month increase in house prices for the month. The Energy Information Administration will release its petroleum status report for the week ended October 18th at 10:30 am ET.
In corporate news, Amgen ( AMGN ) reported third quarter results that exceeded estimates and the guidance was upbeat. Juniper Networks' (JNPR) third quarter results exceeded estimates, but its fourth quarter guidance was lukewarm.
Broadcom (BRCM) reported better than expected third quarter results, while its fourth quarter revenue guidance was soft. Waste Connections' (WCN) third quarter results were below expectations. Apollo Group ( APOL ) reported better than expected fourth quarter results. Insurer ACE (ACE) third quarter operating earnings were ahead of estimates. The company raised its full year operating earnings guidance.
Altera's ( ALTR ) third quarter earnings were ahead of expectations, while its revenues missed estimates. The company's fourth quarter revenue guidance surrounded the consensus estimate. RF Micro Devices (RFMD) reported better than expected third quarter results and guided fourth quarter earnings above the consensus estimate. The company's revenue guidance was weak.
STMicroelectronics (STM) reported third quarter non-GAAP loss of 3 cents per share, flat with last year. Net revenues were nearly flat at $2.01 billion. The results missed expectations. The company said it expects sequentially flat revenue performance for the fourth quarter, while expecting a return to positive cash flow generation as result of the wind down of ST-Ericsson.
Akamai Technologies ( AKAM ), AT&T (T), Cheesecake Factory (CAKE), Citrix Systems (CTXS), E*TRADE (ETFC), Everest Re (RE), F5 Networks (FFIV), Knight Transportation (KNX), Logitech (LOGI), O'Reilly (ORLY), Swift Transportation (SWFT), Symantec (SYMC), TripAdvisor (TRIP) and Triquint Semiconductor (TQNT) are among the companies due to release their quarterly results after the close of trading.
Most Asian markets retreated, led by the Japanese markets, as the dollar weakened and the soft U.S. economic data brought back fears concerning a setback to the economic recovery in the world's largest economy.
Japan's Nikkei 225 ended down 287.20 points or 1.95 percent at 14,426. A majority of the stocks declined, as the yen strengthened to a 2-week high against the dollar. Australia's All closed 14.40 points or 0.27 percent lower at 5,357. Most sector stocks retreated, with the exception of IT and material stocks. Hong Kong's Hang Seng Index ended at 23,000, down 316.04 points or 1.36 percent, and China's Shanghai Composite closed 27.54 points or 1.25 percent lower at 2,183.
On the economic front, a report released by the Conference Board showed that its leading economic indicators index for Australia declined 0.2 percent month-over-month in August.
A report released by the Australian Bureau of Statistics showed that consumer prices rose 1.2 percent sequentially in the third quarter, while economists expected a 0.8 percent increase. At the same time, the Reserve Bank of Australia's trimmed mean measure of inflation was at 0.7 percent, higher than the 0.6 percent rate expected by economists.
European stocks opened lower and have seen further weakness since then.
In corporate news, aluminum maker Norsk Hydro reversed to a profit in its third quarter, thanks to a decline in costs. France's Peugeot Citroen said its third quarter revenues fell 3.7 percent, hut by weakness in Europe and production bottlenecks. French telecommunications giant Orange reported a decline in earnings and revenues for its third quarter. Beer maker Heineken, which has huge exposure to Europe, reported a marginal rise in sales, while volumes decline. The company also lowered its earnings guidance for the full year.
On the economic front, the minutes of the October monetary policy meeting of the Bank of England showed that committee members voted unanimously to maintain rates at 0.50 percent and the asset purchase program at 375 billion pounds. Data released from Spain showed that the country exited a 2-year long recession in the third quarter.
The European Central Bank said today that it would begin risk assessment, asset quality review and stress test of euro area banks next month as it prepares to assume the single supervisory role for the region's banks next year.
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