By Barbara Kollmeyer, MarketWatch
MADRID (MarketWatch) -- U.S. stock futures drifted south on
Wednesday, as pressure stayed on commodity prices. Stock futures
moved lower as Bank of America Corp., posted a small profit that
was better than expected and markets awaited data points including
quarterly results from American Express Co. and retail sales
figures.
Retail-sales data and the Federal Reserve's Beige Book are also
on the calendar.
Futures for the S&P 500 index (SPZ4) eased 7.20 points to
1,867.60, while those for the Nasdaq-100 index (NDZ4) fell 8.25
points to 3,803.50. Futures for the Dow industrials (DJZ4) slipped
36 points to 16,219.
The S&P 500 index(SPX) snapped a three-day losing streak on
Tuesday, closing up 0.2% to 1,877.70, but also ending a string of
wild swings that lasted for five sessions.
Sean Darby, chief global equity strategist at Jefferies, said
it's unlikely the U.S. stock market has entered a bear-market
phase, but rather investors are just unwinding "unfettered
confidence" in central-bank policy.
"The equity market will bottom out once commodity prices find a
floor and the fear of deflation recedes," he said in a note dated
Tuesday. Crude-oil prices (CLZ4) fell anew on Wednesday, dropping
1% ahead of key supply data. Prices hit a two-year low on Tuesday
after a cut in the outlook for oil-demand growth from the
International Energy Agency. Energy-related stocks have sold off
the last four sessions.
Earnings, then data: Among the big companies reporting ahead of
the bell, Bank of America (BAC) reported a third-quarter loss that
was smaller than expected, sending the shares 1.3% higher ahead of
the open.
American Express (AXP) will also report, with expectations for
per-share earnings of $1.37 on revenue of $8.35 billion.
Netflix Inc. (NFLX) and eBay Inc. (EBAY) will report after the
close. Check out MarketWatch's for previews.
A chunk of economic data will mix in with earnings reports. At
8:30 a.m. Eastern Time, fresh data are expected to show retail
sales declined 0.2% in September. However, that likely drop is
being blamed on a slowdown in auto sales that's expected to prove
temporary. See preview
Producer prices for September are due at the same time, as is
the Empire State index. That index, and the Federal Reserve's Beige
Book -- due at 2 p.m. Eastern -- are expected to paint a picture of
a strong manufacturing sector and improving U.S. economy.
Stocks to Watch: AbbVie Inc. (ABBV) shares fell 2% in thin,
premarket trading after the U.S. drug maker indicated it's
reconsidering a $54 billion deal to buy Shire PLC in light of new
Treasury rules that make that deal less attractive. Shares of Shire
slumped 27% in London, weighing on the FTSE 100, while its
U.S.-listed shares (SHPGY) sank 25% in premarket. Ireland to close
'Double Irish' tax loophole
Hazmat-suit related companies that have recently rallied on
Ebola fears were surging once again in premarket trading on
Wednesday. Shares of Lakeland Industries Inc. (LAKE) rallied 19%,
Alpha Pro Tech Ltd. (APT) jumped 22% and Versar Inc. (VSR) picked
up 14%.
Qualcomm Inc.(QCOM) said it has offered to buy U.K. chip maker
CSR PLC in a $2.5 billion deal. In August, CSR rejected a takeover
offer from Microchip Technology Inc. (MCHP). U.S-listed CSR shares
(CSRE) surged 28%.
Intel Corp. (INTC) shares were rising in premarket trading,
after the chip maker posted improved earnings and revenue late
Tuesday.
Ann Inc. (ANN) could rise in premarket after the retailer
reported a nondisclosure agreement with Golden Gate Capital, the
private-equity firm that disclosed a big stake in the company
earlier this year.
Other markets: Asian stocks largely rebounded from prior-day
losses. Gold prices (GCZ4) slipped $10 as global equity markets
appeared to calm down. The dollar(USDJPY) rose against the yen as
Tokyo stocks gained.
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