17th Apr 2014 11:10
LONDON (Alliance News) - US stocks look set to open lower Thursday, with earnings and potentially stretched valuations in focus after Google missed analyst expectations last night and with more big US names continuing to report throughout the afternoon. The market also has one eye on Geneva, where crisis talks over the Ukrainian situation, billed as the last chance for peace in the region, are underway.
US stocks made solid gains on Wednesday, boosted by the doveish comments from Federal Reserve Chair Janet Yellen who repeated her stance that the Fed will maintain its ultra loose monetary policy, or low interest rates, for some time after it has finished scaling back its monthly asset purchase programme.
However after the market close Wednesday, technology giant Google released disappointing results that have seen the shares fall about 3.0% in the pre-market. "This may be enough to undo comments from Fed Chair Janet Yellen," said CMC Markets analyst Jasper Lawler.
US futures have been lifted off their lows by better-than-expected earnings from Morgan Stanley, but are still indicating a lower open, with the DJIA and the S&P 500 to open about 0.3% lower, while the technology heavy Nasdaq will open 0.8% lower.
Morgan Stanley reported earnings per share of 68 cents, exceeding analyst expectation for 60 cents. The stock has jumped about 3.5% in pre-market trading as a result.
General Electric has announced its quarterly numbers, with earnings per share of 33 cents, slightly higher than the expectation of 32 cents, on revenues slightly lower than estimates. The stock is moving higher in the pre-market, up about 0.8%.
Goldman Sachs is next up, with numbers due at 1130 GMT. Results are also due later in the day from PepsiCo, which may be in particular focus given the update from fellow drinks maker Diageo Thursday that highlighted the ongoing weakness and drag on profitability in emerging markets. Diageo continues to lead the FTSE 100 lower Thursday, currently down 4.0%.
The FTSE 100 has also received a small boost from the better-than-expected Morgan Stanley results. The blue chip index has clawed back to almost flat on the session, trading just slightly lower at 6,582.34. Heading towards the US open, the FTSE 250 is up 0.5%, and the AIM All-Share is up 0.3%.
There's also some US data to come, following a morning light on readings in Europe. Initial jobless claims for the week ended April 11 are due at 1230 GMT, with economists expecting a small rise in claims to 315,000 from 300,000 in the previous week.
The Philadelphia Fed Manufacturing index is also still to come at 1400 GMT, with analysts expecting a small improvement to 10 in March, from 9 in February.
Crisis talks in Geneva between officials from Russia, Ukraine, the US, and the EU to find a last minute diplomatic solution to the Ukrainian situation continue.
By Jon Darby; [email protected]; @jondarby100
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