By Sara Sjolin, MarketWatch
Time Warner Cable rallies premarket on bid news
U.S. stocks were on track for another day in red territory on
Tuesday, ahead of closely watched durable-goods and housing numbers
that could further strengthen the case for a rate hike this
year.
Futures for the Dow Jones Industrial Average (YMM5) dropped 56
points, or 0.3%, to 18,168, while those for the S&P 500 index
(ESM5) lost 7.85 points, or 0.4%, to 2,116.75. Futures for the
Nasdaq 100 index (NQM5) gave up 23.50 points, or 0.5%, to 4,505.50.
U.S. markets were closed for Memorial Day on Monday.
The benchmarks were keying off weakness from last week, when
Federal Reserve Chairwoman Janet Yellen spooked markets by saying a
rate hike is still in the cards for 2015. Stronger-than-expected
inflation data on Friday further added to speculation that the
first monetary tightening will come before the end of the year, as
growth in consumer prices is moving closer to the Fed's target.
The dollar rallied on the back of the inflation data on Friday
and continued its ascent on Tuesday
(http://www.marketwatch.com/storyno-meta-for-guid). The ICE dollar
index (DXY) jumped 1% to 97, while the greenback climbed to an
almost eight-year high against the yen at Yen122.74, up from
Yen121.56 on Monday.
Data: Economic figures out on Tuesday will also be scrutinized
by investors for any strength or weakness that could play into the
timing of the first rate hike.
First up are durable-goods orders at 8:30 a.m. Eastern Time.
They are expected to have fallen by 0.5% in April, according to a
poll of economists by MarketWatch.
"Given that rate hikes will always be 'data dependent', bullish
traders won't want to see a meet or beat on April's durable-goods
orders," said Brenda Kelly, head analyst at London Capital Group in
a note.
"We are back to the heady days where bad news is positive for
equities. Assuming we ever left those days," she added.
At 9 a.m. Eastern Time, the Case-Shiller home-price index and
FHFA home-price index for March are due, followed by May consumer
confidence and new home sales for April at 10 a.m. Eastern.
Fed speakers: Fed Vice Chairman Stanley Fischer speaks on "the
Fed and the global economy" in Tel Aviv, Israel at 7:30 p.m. local
time or 12:30 p.m. Eastern Time.
Richmond Fed President Jeffrey Lacker, who is not a voting
member of the Federal Open Market Committee this year, gives a
speech on financial stability at Louisiana State University in
Baton Rouge, La. at 8:10 p.m. Eastern.
Earnings: Reporting ahead of the bell, AutoZone Inc.(AZO) is
projected to report fiscal third-quarter earnings of $9.52 a share,
according to a consensus survey by FactSet. The car-part retailer
earned $8.46 a share in the same quarter last year.
Then after the bell, TiVo Inc.(TIVO) is expected to post
first-quarter earnings of 7 cents a share, unchanged from a year
earlier.
Movers and shakers: Shares of Time Warner Cable Inc.(TWC) surged
9.1% ahead of the bell, after news on Monday that Charter
Communications Inc.(CCMMV) is nearing a deal to buy
(http://www.marketwatch.com/story/charter-near-deal-for-time-warner-cable-bloomberg-2015-05-25)
the cable-TV company for roughly $55 billion.
Other markets: European stock markets were mainly lower as
investors continued to track developments in Greece's bailout
negotiations
(http://www.marketwatch.com/story/greece-wont-meet-imf-repayments-in-june-interior-minister-says-2015-05-24).
The euro traded as low as $1.0884 on Tuesday, its lowest level
since April 28, down from $1.0978 on Monday
Asian markets closed mixed
(http://www.marketwatch.com/storyno-meta-for-guid), while oil
(http://www.marketwatch.com/storyno-meta-for-guid)(CLN5) and metals
prices were hit by the dollar rally.
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