By Anora Mahmudova and Barbara Kollmeyer, MarketWatch
NEW YORK (MarketWatch) -- U.S. stock futures trimmed earlier
gains Tuesday, after government data showed orders for durable
goods fell unexpectedly in September. Durable goods showed declines
for the second straight month.
The decline was mainly due to waning demand for a variety of
products including autos, aircraft, computers and heavy machinery.
The drop raises some questions about the health of the U.S.
economy.
Futures for the S&P 500 index (SPZ4) rose 6 points, or 0.5%,
to 1,963.40, while those for the Dow industrials (DJZ4) rose 51
points, or 0.3%, to 16,808. Futures for the Nasdaq-100 (NDZ4)(NDZ4)
popped 18 points, or 0.5%, to 4,056.50.
Those gains were in contrast to Monday, in which the S&P 500
index (SPX) closed down 0.2% and the other major indexes barely
eked out gains. Energy stocks slid after Goldman Sachs slashed its
oil-price target. Read: What to make of this roller-coaster stock
market
Part of the narrative driving U.S. trading was the fact that
European markets, which did poorly compared with U.S. counterparts
on Monday, are playing catch-up this morning, said Wouter
Sturkenboom, strategist at Russell Investments in London, in
emailed comments.
Throw 'em a bone: "Also, markets are trading into the [Federal
Open Market Committee] statement later this week, expecting an end
to quantitating easing, but dovish wording (they basically expect
the FOMC to throw them a bone)," said Sturkenboom.
A decision after the two-day FOMC meeting comes Wednesday.
Data on Tuesday showed orders for U.S. durable goods fell 1.3%
in September to mark the second straight decline, as demand waned
for a variety of products including autos, aircraft, computers and
heavy machinery. Economists polled by MarketWatch had expected
durable-goods orders to rise by 0.2% last month. Read: Businesses
step up investment. Will it last?
At 9 a.m. Eastern Time, the S&P/Case-Shiller home price
index for August will be released, then the consumer confidence
index for October hits at 10 a.m. Eastern.
Stocks to watch:
Aetna Inc.(AET) rose 1.8% in premarket after lifting its
outlook, as the insurer's results topped expectations.
Whirlpool Corp. (WHR) fell about 2.8% in premarket trade after
earnings per share missed expectations.
DuPont (DD) posted a rise in profit and backed its full-year
outlook, though shares were flat in premarket.
Pfizer Inc. (PFE) shares rose 2% in premarket after earnings and
sales beat expectations.
Facebook Inc.(FB) will report later Tuesday.
Twitter Inc.(TWTR) was hit by downgrades from several analysts
on Tuesday, leading shares to drop 14% in premarket trading. The
social-media company disappointed investors after its
fourth-quarter revenue forecast came slightly under analysts'
expectations, and growth in new users slowed in the third quarter.
Read a live-blog recap
Apple Inc.(AAPL) could grab some attention, after Alibaba Group
Holding Ltd.'s (BABA) chief executive officer Jack Ma said he was
interested in cooperating with the iPhone maker on financial
payments. Ma was speaking during an interview at the WSJD
Liveglobal technology conference in California late Monday.
Also at that conference, Apple CEO Tim Cook played down reports
of retailers such as Rite Aid Corp.(RAD) not accepting Apple Pay at
stores. He said more than one million cards were activated on Apple
Pay within 72 hours of its debut last week, making it the largest
mobile-payment offering.
Madison Square Garden Co.(MSGNV) said late Monday that it was
exploring the possibility of splitting into two publicly traded
companies to unlock value in its sports franchises. Shares rose 13%
in premarket.
Other markets: European stocks were on the rebound Tuesday, with
the German DAX 30 index up 1.3%. Stocks in China surged, with the
Hong Kong Hang Seng Index up 1.6%. Oil prices (CLZ4) were taking a
breather after a sharp drop on Monday. Gold prices (GCZ4) were
lackluster, as was the dollar (DXY).
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