21 Jan 2015
Disappointing earnings may lead to early weakness on Wall Street
FXStreet (Mumbai) - After posting gains in the previous session, the Wall street is likely to see a negative open today as indicated by the action in the major index futures.
At the time of writing, the DJIA futures traded 0.37% lower at 17,396 levels, while the S&P futures are down 0.20% at 2012.95 levels. The NASDAQ futures and the Russell futures declined 0.19% and 0.25% to 4159.70 and 1163.70 levels respectively. Consequently, the VIX futures are up 0.75% at 20.28 levels.
Moreover, the stocks are likely to see early selling on account of disappointing earnings. Shares in IBM are down in the pre-market trading as the company provided a disappointing guidance despite reporting a better-than-expected Q4 earnings. Shares in chip maker AMD may also decline as the company reported Q4 earnings that missed street expectations. Meanwhile, Netflix stock gained in pre-market trading after it reported full-year earnings guidance.
On the data front, the housing data in the US painted a mixed picture. The housing starts rose 4.4% month-on-month in December, beating the estimate of a 1.2% rise, while the Building Permits fell declined 1.9%, missing the estimate of a 0.8% rise.
In overseas trading, stock markets across the Asia-Pacific region moved mostly higher, while the major European indices are turning in a mixed performance. Overall the trading is likely to be subdued as the traders are likely to be cautious ahead of the European Central Bank meet scheduled tomorrow.
At the time of writing, the DJIA futures traded 0.37% lower at 17,396 levels, while the S&P futures are down 0.20% at 2012.95 levels. The NASDAQ futures and the Russell futures declined 0.19% and 0.25% to 4159.70 and 1163.70 levels respectively. Consequently, the VIX futures are up 0.75% at 20.28 levels.
Moreover, the stocks are likely to see early selling on account of disappointing earnings. Shares in IBM are down in the pre-market trading as the company provided a disappointing guidance despite reporting a better-than-expected Q4 earnings. Shares in chip maker AMD may also decline as the company reported Q4 earnings that missed street expectations. Meanwhile, Netflix stock gained in pre-market trading after it reported full-year earnings guidance.
On the data front, the housing data in the US painted a mixed picture. The housing starts rose 4.4% month-on-month in December, beating the estimate of a 1.2% rise, while the Building Permits fell declined 1.9%, missing the estimate of a 0.8% rise.
In overseas trading, stock markets across the Asia-Pacific region moved mostly higher, while the major European indices are turning in a mixed performance. Overall the trading is likely to be subdued as the traders are likely to be cautious ahead of the European Central Bank meet scheduled tomorrow.