By RTT News, October 16, 2013, 06:27:00 AM EDT
(RTTNews.com) - Early indications suggest that Wall Street stocks may open higher on Wednesday, as traders remain hopeful that lawmakers will stitch together a deal to avert a potential default. The conviction that lawmakers will not let the country down is generating some positive sentiment and the sustenance of the mood depends a lot on what happens with the negotiations. Corporate news has been mixed, with Intel and Linear Technology issuing cautious outlook that has overshadowed their positive quarterly performances, while Yahoo!'s results were encouraging. Main Street calendar continues to be light, given the ongoing government shutdown, with the results of a homebuilder confidence survey being the lone data of significance.
At 6:15 am ET, the Dow futures are rising 61 points, the S&P 500 futures are moving up 7.00 points and the Nasdaq 100 futures are adding 4.00 points.
The lack of a debt deal led to weakness on Wall Street on Tuesday, with the major averages all ending moderately lower.
On the economic front, the National Association of Realtors is scheduled to release its housing market index for October at 10 am ET. Economists expect the index to remain unchanged at 58.
The Federal Reserve is due to release its Beige Book report at 2 pm ET. Dallas Federal Reserve Bank PresidentÂ Richard FisherÂ is scheduled to participate in a debate on breaking up big banks in New York at 6:45 pm ET.
In corporate news, Intel ( INTC ) reported third quarter results that were ahead of expectations. For the fourth quarter, the company expects revenues of $13.7 billion, plus or minus $500 million, while analysts estimate revenues of $14.02 billion.
Yahoo!'s ( YHOO ) third quarter results exceeded estimates. Separately, the company said it entered into an amendment to the share repurchase and preference sale agreement with Alibaba, which reduces the number of shares of Alibaba that Yahoo is required to sell in connection with the IPO of Alibaba to 208 million from 261.5 million.
CSX Corp. ( CSX ) reported better than expected third quarter results. Linear Technology's ( LLTC ) first quarter results were also better than expected. Citing seasonal weakness in the last month of the quarter due to the holiday period and the anticipated impact from current budgeting stalemate, the company forecasts flat to 4 percent sequential drop in second quarter revenues.
American Express ( AXP ), East West Bancorp ( EWBC ), eBay ( EBAY ), IBM ( IBM ), Noble Corp. ( NE ), Sallie Mae (SLM), RLI Corp. ( RLI ), SanDisk ( SNDK ), United Rentals ( URI ) and Xilinx ( XLNX ) are among the companies due to release their quarterly results after the close of trading.
The major Asian markets closed on a mixed note, with the underlying sentiment being cautious, as traders look ahead to the developments in Washington. The Japanese, New Zealand, Malaysian, Singaporean and Australian markets ended higher, while the Hong Kong, Chinese, South Korean and Taiwanese markets retreated.
Japan's Nikkei 225 average moved back and forth across in a broad range throughout the session before ending up 25.60 points or 0.18 percent at 14,467. Australia's All Ordinaries showed some volatility before closing up 5.20 points or 0.10 percent at 5,264. Material stocks showed some strength, helping to offset the weakness in the energy and financial spaces. Hong Kong's Hang Seng Index closed at 23,228, down 108.19 points or 0.46 percent, and China's Shanghai Composite Index closed 40.34 points or 1.81 percent lower at 2,193.
On the economic front, a report released by Westpac and the Melbourne Institute showed that their leading index for Australia edged down 0.1 percent month-over-month in August. The annualized growth rate of the index was 3.2 percent, above its long-term trend of 2.9 percent. South Korea's jobless rate eased to 2.7 percent in September from 3 percent in August, according to a report released by Statistics Korea.
European stocks opened lower and are continuing to see weakness amid the release of mixed corporate news and apprehensions concerning the U.S. debt ceiling.
In corporate news, chip equipment maker ASML ( ASML ) reported that its third quarter earnings declined to 193.1 million euros compared to 274.7 million euros last year. However, the earnings were above estimates by most analysts. Sales were up 7.3 percent to 1.32 billion euros. The company confirmed its full year sales guidance of 5.2 billion euros.
French dairy company Danone lowered its full year forecast after reporting a small increase in its third quarter sales. French ad firm Publicis, which has agreed to merge with Omnicom, reported a slowdown in its third quarter revenue growth but forecast a faster rate of increase in organic sales growth. Luxury retailer LVMH reported third quarter sales that missed estimates.
On the economic front, car registrations in Europe recovered in September, according to data released by the ACEA. Sales rose 5.4 percent year-over-year to 1.15 million units in September.
A report released by the U.K. Office for National Statistics showed that claimant count in the U.K. fell by 41,700 in September compared to expectations for a 25,000 drop. The unemployment rate calculated based on ILO standards for the three months ended August came in line with expectations at 7.7 percent.
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