Stocks Defensive Before Earnings; IBM Lowers FY2014 Guidance
Stock futures are lower as Q4 earnings continue to encourage a more defensive posture, especially given the pre-market performance of IBM ( IBM ) and Advanced Micro Devices ( AMD ). Both companies issued lowered guidance for the current quarter, causing their share prices to fall precipitously, and dragging the broader markets lower in sympathy. Wednesday's earnings calendar includes nearly 80 companies reporting earnings, including General Dynamics ( GD ) and Netflix ( NFLX ), leaving investors more cautious into today's NYSE open.
Global markets were underpinned last night by China's attempts to ease lending pressures and Australian inflation data which reduced pressure on the Reserve Bank of Australian to lower interest rates. European stocks got a boost from bullish UK employment data, but unfortunately, the bid faded in tandem with weaker U.S. markets leaving both the FTSE and DAX in the red.
-Dow Jones Industrial down 0.24%
-S&P 500 futures down 0.11%
-Nasdaq 100 futures up 0.01%
Nikkei up 0.16%
Hang Seng up 0.21%
Shanghai Composite up 2.16%
FTSE-100 down 0.11%
DAX-30 down 0.19%
PRE-MARKET SECTOR WATCH
(+/-) Large cap tech: mixed
(-) Chip stocks: lower
(+/-) Software stocks: mixed
(-) Hardware stocks: lower
(+) Internet stocks: higher
(+/-) Drug stocks: mixed
(-) Financial stocks: lower
(+) Retail stocks: higher
(-) Industrial stocks: lower
(+) Airlines: higher
(+/-) Autos mixed
MELA (+7.53%) Presented positive results from its third clinical advisory meeting in which use of melanoma tool could become widespread.
DRWI, DRWI.TO (+19.50%) The company was selected by Gogo Inc. ( GOGO ) to provide microwave solutions for backhaul connectivity as part of Gogo's ongoing expansion.
KOOL (+18.26%) Extending Tuesday's gains when ThermoGenesis and Totipotent RX Corporation's Critical Limb Ischemia Rapid Stem cell Therapy met both its primary safety and secondary efficacy endpoints at 12 months.
NOVB (+26.0%) Agreed to merge with TriCo Bancshares (TCBK) in a transaction valued at approximately $178.4 million
VISN (+48.82%) Entered into an exclusive strategic cooperation agreement with Baidu Games (BIDU)
ABB (-4.54%) Warned that Q4 2013 results had been adversely impacted by charges for storm-related project delays and some operational issues in the Power Systems division
AMD (-7.91%) Beat on Q4 but guiding for a sequential Q1 decline in sales.
IBM (-3.95%) Beats on Q4 earnings but shy on revenue and targeting FY 2014 non-GAAP EPS of at least $18.00 per share vs estimates of $18.01 per share.