9th Apr 2014 10:29
WASHINGTON (Alliance News) - Trading in the US index futures suggests that US stocks may open higher on Wednesday, as the markets attempt to build on the momentum that was imparted yesterday by bargain hunting. Earlier in the global trading day, Asian stocks closed mostly higher, with the exception of Japan, while the European markets are also advancing. The domestic markets may react to some earnings reports, including that from Alcoa, and the FOMC minutes due to be released in the afternoon.
At 6:15 am ET, the Dow futures are rising 39 points, the S&P 500 futures are moving up 2.50 points and the Nasdaq 100 futures are advancing 10.50 points.
US stocks rebounded on Tuesday, as bargain hunting kicked in some buying despite uncertainty creating indecision among the minds of traders.
On the economic front, the Commerce Department is scheduled to release its wholesale inventories report for February at 10 am ET. Economists estimate that wholesale inventories may have risen by 0.6% month-over-month.
The Energy Information Administration is due to release its weekly petroleum status report for the week ended April 4th at 10:30 am ET. The Treasury is set to release the results of its 10-year note auction at 1 pm ET.
The Federal Reserve is due to release the minutes of its March 19th FOMC meeting at 2 pm ET. At the meeting, the central bank maintained its Fed funds rate at 0-0.25%, while it removed the unemployment rate target of 6.5% and inflation objective of not more than half a %age point above the committee's long-term goal as the criteria for removing monetary policy accommodation. Instead, the committee said it will assess progress--both realized and expected--toward its objectives of maximum employment and 2% inflation.
Chicago Fed President Charles Evans will speak on Fed communications in Washington at 3:30 pm ET. Federal Reserve Gov Daniel Tarullo is scheduled to deliver a dinner speech in Washington at 7 pm ET.
In corporate news, Alcoa (AA) reported first quarter adjusted earnings of 9 cents per share on revenues of USD5.5 billion. The earnings exceeded estimates, while the revenues were ahead of estimates. The company said it continues to project global aluminum demand growth of 7% in 2014.
WD-40 (WDFC) reported second quarter earnings of 67 cents per share on net sales of USD94.2 million, up from USD86.7 million last year. The earnings missed estimates, while the revenues were ahead of estimates. For 2014, the company expects earnings of USD2.65-USD2.80 per share on net sales of USD383 million to USD398 million. The guidance was in line. SAIC (SAIC) reported fourth quarter earnings that beat estimates, while its revenues were below expectations.
PVH (PVH) announced that it has become a minority shareholder in the parent company of the Karl Lagerfeld brand. The company did not reveal the terms of the deal. Apogee Enterprises (APOG), Bed Bath & Beyond (BBBY) and Ruby Tuesday (RT) are among the companies due to release their quarterly results after the close of trading.
Most Asian markets advanced, encouraged by the resilience shown by the US markets overnight, although the Japanese market succumbed to weakness generated by a stronger yen.
Australia's All Ordinaries rebounded from a 2-session drop, with Alcoa's better than expected first quarter earnings also lending some support. The All Ordinaries hovered above the unchanged line throughout the session, ending up 51.10 points or 0.94% at 5,460. Hong Kong's Hang Seng Index ended at 22,843, up 246.20 points or 1.09%, and China's Shanghai Composite added 6.95 points or 0.33% before closing at 22,843.
Meanwhile, Japan's Nikkei 225 average opened notably lower and languished below the unchanged line throughout the session. The index closed down 307.19 points or 2.10% at 14300. A majority of stocks declined, with the weakness more evident in export stocks. Casio Computer, NTN, Mitsui OSK Lines and Mitsui Fudosan were among the worst decliners of the session. Toyota (TM) fell 2.41% after it recalled 6 million, plus vehicles, globally, citing faults in parts such as steering and seat.
On the economic front, the results of a survey by Westpac and the Melbourne Institute showed that consumer confidence in Australia rose slightly in April. The corresponding consumer confidence index edged up 0.3 points to 99.7. The Australian Bureau of Statistics reported that the total number of home loans issued in Australia was up a seasonally adjusted 2.3% month-over-month in February, exceeding expectations for a 1.5% increase.
European stocks are seen recovering from a two-session slide, with all the three major averages in the region moving moderately higher.
On the economic front, the British Retail Consortium reported that shop prices in the UK tumbled 1.7% year-over-year in March, steeper than the 1.5% drop expected by economists. Data released by the German Federal Statistical Office showed that German exports fell 1.3% month-over-month in February, while imports rose 0.4%. The trade surplus declined to a seasonally adjusted 15.7 billion euros in February from 17.3 billion euros in January.
The UK Office of National Statistics released the trade balance report for the UK, showing a narrowing in the trade deficit to 9.1 billion pounds in February from a deficit of 9.5 billion pounds in January.
Copyright RTT News/dpa-AFX