US Stocks Turn Lower Amid Dallas Fed Taper Talk; Earnings Disappoint
US stock futures looked set to open lower Tuesday after a rally that saw the Dow once again flirting with a record high. In an otherwise light day on economic data, investors took cues from Federal Reserve Bank of Dallas President Richard Fisher who told CNBC that the Fed will have to start tapering its $85 billion-a-month asset purchasing program soon.
"We've changed and impacted the markets because of our intervention and I understand there's sensitivity, but markets should also bear in mind that this program cannot go on forever," he said.
"The real issue that markets care about is the forward guidance, what will we do after we stop this program or slow it and then stop it," he told CNBC.
Later today, Fisher will speak at conference in Australia. Atlanta Fed President Lockhart and Minneapolis Fed President Kocherlakota are also due to speak this afternoon.
Meanwhile, the Chicago Fed National Activity index was unchanged at 0.14.
In equities, Sarepta ( SRPT ) shed more than half its value before the bell, down 54.32% to $16.70, plunging below the 52-week range between $21.86 and $55.61, after saying the U.S. Food and Drug Administration thinks the company prematurely filed a new drug application for Eteplirsen to treat Duchenne muscular dystrophy.
At the other end of the spectrum, Vanda Pharmaceuticals ( VNDA ) surged 81.20% to $12.30, near the top end of the 52-week range between $2.92 and $13.47, after saying its Tasimelteon drug to treat Non-24-Hour Disorder has been shown in a study to be safe and well tolerated.
U.S. PRE-MARKET INDICATORS
-Dow Jones Industrial down 0.09%
-S&P 500 futures down 0.20%
-Nasdaq 100 futures down 0.29%
-Nasdaq-100 Pre-Market Indicator down 0.18%
Nikkei up 2.23%
Hang Seng down 0.73%
Shanghai Composite up 0.82%
FTSE-100 down 0.33%
DAX-30 down 0.25%
PRE-MARKET SECTOR WATCH
(+/-) Large cap tech: mixed
(+/-) Chip stocks: mixed
(+/-) Software stocks: mixed
(+/-) Hardware stocks: mixed
(+/-) Internet stocks: mixed
(+/-) Drug stocks: mixed
(-) Financial stocks: lower
(-) Retail stocks: lower
(+/-) Industrial stocks: unchanged
(+/-) Airlines: unchanged
(-) Autos: lower
(+) DISH (+3.16%) Q3 earnings beats expectations
(+) PERI (+12.54%) Beats on Q3, sets mixed guidance
(-) NWSA (-2.41%) Q3 earnings drop from year ago to miss expectations
(-) YGE (-7.78%) Posts Q3 loss in line with views
(-) HOLX (-13.23%) Guides Q1 below street; downgraded at RBC
(-) RAX (-9.45%) Q3 earnings miss views
(-) HSOL (-17.39%) Revenues slip 4%, EPS loss widens