By Carla Mozee, MarketWatch
LONDON (MarketWatch) -- U.S. stock futures were relatively
quiescent Wednesday, a day after Wall Street served up big gains in
the previous session. One stand-out, Boeing Co., was seeing a solid
start higher in premarket trade following its quarterly
results.
Today's market action will be fueled by data on consumer prices,
which could reflect falling gas prices--a potential boon for U.S.
households.
Futures for the Dow Jones Industrial Average (DJZ4) turned
higher by 10 points to 16,558, but those of the S&P 500 (SPZ4)
lost 2.1 points, or 0.1%, to 1,935.90. Nasdaq-100 futures (NDZ4)
fell 2 points to 3,972.50. (Read more in our Need to Know column:
http://www.marketwatch.com/story/icahn-says-buying-apple-is-a-no-brainer-and-a-first-ever-for-the-vix-2014-10-22.)
Stocks surged on Tuesday with the Nasdaq Composite (RIXF)
notching its best one-day advance in more than two years as shares
of Apple Inc. (AAPL) and biotech stocks jumped. The S&P 500
(SPX) on Tuesday bounced up 2%, and the Dow Jones Industrial
Average (DJI) rose 1.3%.
Following Wednesday's leap, "a small amount of reflection today
would not be strange," said Wouter Sturkenboom, a London-based
investment strategist at Russell Investment, he wrote in an emailed
statement: "[M]arkets could easily still go either way," he
noted.
Futures were also reflecting "a basic retracement after a very
strong rally in the U.S. and Europe yesterday," said Christian
Tegllund Blaabjerg, senior strategist at Danske Bank Markets, in an
interview. He doesn't expect an extension in the recent selloff of
worldwide equities, in part as a significant fall in the S&P
500 -- among the top leading indicators watched by economists --
would hurt expectations of nominal GDP growth and likely prompt
Federal Reserve officials "to start talking very dovishly and
[reassure] markets that they are still there."
"While we maintain some of our longer-term concerns with
equities, the case for a short-term bounce in U.S. stocks is strong
as long as the DJIA stays above last week's panic low at 15,850,"
wrote Matt Weller, senior technical analyst at Forex.com, in a note
late Tuesday.
Data: The September reading of the consumer-price index will be
released at 8:30 a.m. Eastern Time by the Labor Department.
Economists polled by MarketWatch expect a slight increase of 0.1%,
after the index dropped in August for the first time since the fall
of 2012.
Earnings: Before the bell, Boeing (BA) shares rose 1.2% as the
aerospace company again raised its earnings forecast for the year
following a rise in third-quarter earnings.
Dow Chemical (DOW) shares climbed 3.7% after the company's
adjusted third-quarter earnings of 72 cents a share came in above
the FactSet consensus estimate of 67 cents. Revenue also exceeded
analyst forecasts of $14.32 billion.
Biotech firm Biogen Idec (BIIB) reported better-than-expected
third-quarter results and lifted its full-year earnings outlook.
Shares had been up in premarket trade after the report, but later
pulled lower by 3%.
Stocks to watch: Yahoo Inc. (YHOO) shares rose 4% ahead of the
open, after the online search provider posted better-than-expected
third-quarter results late Tuesday.
Tekmira Pharmaceuticals Corp. (TKMR) shares popped up 12% ahead
of the bell, with the company saying it has started limited
manufacturing of a new therapeutic targeting the Ebola--Guinea
virus. Supply of the product will be available in early December
2014 "for potential use by various collaborators," said
Tekmira.
Interdealer broker BGC Partners Inc. (BGCP) plans to make a
hostile bid to buy rival GFI Group Inc.(GFIG) for $675 million, The
Wall Street Journal reported, according to people familiar with the
matter.
Tesla Motors Inc. (TSLA) fell more than 1% in Tuesday's extended
trading session after Daimler AG said it has sold its 4% stake in
the electric car maker.
Other markets: In Asia, Japanese stocks pushed higher, putting
the Nikkei Average up by 2.6%. European stocks and the euro
(EURUSD) fell after a Spanish news report that 11 banks will fail
the European Central Bank's stress tests. The results are due
Sunday.
Gold futures (GCZ4) fell $4 an ounce and oil futures (CLZ4)
edged up. The dollar (USDJPY) traded slightly lower against the
yen.
Subscribe to WSJ: http://online.wsj.com?mod=djnwires