By Barbara Kollmeyer, MarketWatch
Analyst: S&P 500 could be about to start at technical
correction
Wall Street could be in for a struggle on Friday, with stock
futures pointing to a weaker start, with General Electric Co. lined
up to report, and consumer prices and sentiment data ahead.
Futures for the Dow Jones Industrial Average (YMM5) fell 30
points to 18,011, while those for the S&P 500 index (ESM5)
dipped 3.55 points to 2,097.25. Futures for the Nasdaq 100 index
(NQM5) were down 7.5 points to 4,407.50.
The S&P 500 (SPX) is set to finish barely positive in a week
that has lobbed oil-price volatility, big-name earnings, data and
several Federal Reserve speakers at investors at once.
Stocks closed slightly lower on Thursday
(http://www.marketwatch.com/story/us-stocks-futures-waver-with-goldman-earnings-fed-speakers-in-focus-2015-04-16),
getting only a brief bump from a handful of Fed members who
suggested a near-term interest-rate hike might be less likely. The
S&P 500 ended 0.5% shy of its all-time close of 2,117.39,
reached March 2.
Investors will get an update on inflation, with consumer prices
for March due at 8:30 a.m. Eastern Time. Economists surveyed by
MarketWatch are forecasting a 0.3% rise, versus a 0.2% gain in the
February. Core prices are expected to rise 0.2%, the same gain as
February. Then the University of Michigan consumer sentiment survey
for April is coming at 9:55 a.m. Eastern. Leading indicators for
March will hit at 10 a.m. Eastern.
Correction ahead? A technical analyst told CNBC on Friday that
he expects major global benchmarks to begin correcting over the
next month. "I think the correction has started on the DAX, and the
S&P 500 we are probably on the top today," Yacine Kanoun,
managing director at PivotHunters, a U.K.-based portfolio
management company, said Friday
(http://www.cnbc.com/id/102595532).
European stocks , which have attracted and more investor flows
as returns have trounced U.S. markets, continued down a weak path
after falling from record highs on Thursday amid worries over
Greece. The German DAX 30 index was down nearly 2% on Thursday, and
was off another 0.2% on Friday.
Kanoun expects the expiry of options contracts on Friday to kick
off a correction, and hee expects the S&P 500 to come down 10%
from its current peak. He sees the DAX bottoming at 11,650.
Need to Know: When sex isn't selling, it might be time to get
defensive
(http://www.marketwatch.com/story/when-sex-isnt-selling-it-might-be-time-to-get-defensive-2015-04-17)
Stocks to Watch: Ahead of the market open, General Electric(GE),
Reynolds American Inc.(RAI) and Honeywell International Inc.(HON)
are due to report.
After Thursday's close, American Express Co.(AXP) posted a 6.5%
gain in profit due to card-member spending. Shares slipped 1.1% in
late trade after the payment-card company said
(http://www.marketwatch.com/story/amex-profit-buoyed-by-card-member-spending-2015-04-16-16485228)its
results were hurt by a stronger dollar.
Mattel Inc
(http://www.marketwatch.com/story/amex-profit-buoyed-by-card-member-spending-2015-04-16-16485228).(MAT)
shares rose nearly 7% in late trade after the toymaker posted a
narrower-than-expected loss for the first quarter.
Advanced Micro Systems Inc.(AMD) could get hit in premarket.
Shares fell nearly 9% after the chip maker posted a wider-fiscal
first-quarter loss and weaker revenue.
Schlumberger NV(SLB) shares rose just over 2% in late trade. The
oil-field services company said it would cut 11,000 more jobs after
posting a 39% first-quarter earnings drop.
Other markets: In Asia, the Nikkei 225 posted a 1% drop, while
the Shanghai Composite Index surged 2.2%. The dollar remained under
pressure, while gold prices (CLK5) pushed higher.
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