By Anora Mahmudova and Sara Sjolin, MarketWatch
Commodities under pressure as dollar resumes rally
U.S. stock futures were inching higher on Wednesday, pointing to
a slight rebound on Wall Street after a sharp selloff in the
previous trading session.
With no major economic releases on the calendar, investors were
instead expected to focus on earnings news from retailers such as
Tiffany & Co. and Costco Wholesale Corp., as well as on the
rebound in commodity prices.
Futures for the Dow Jones Industrial Average (DJM5) rose 20
points, or 0.1% to 18,073, while those for the S&P 500 index
(ESM5) were up 2.10 points, or 0.1% to 2,107. Futures for the
Nasdaq 100 index (NQM5) climbed 5.75 points, or 0.1%, to
4,485.50.
"In the absence of any Greek or Fed-related news flow, I think
we'll continue to see a small reversal of yesterday's selloff. We
could see markets establish an early trading range with investors
awaiting further catalysts for the next big market move," said
Craig Erlam, senior market analyst at Oanda, in emailed
comments.
U.S. stocks were hard hit on Tuesday, when a sharp increase in
the dollar
(http://www.marketwatch.com/story/euro-drops-on-greek-debt-fears-dollar-nears-year-high-versus-yen-2015-05-26)
spurred global investors to dump riskier assets such as equities
and commodities. Both the S&P 500 index (SPX) and Dow Jones
Industrial Average (DJI) suffered their biggest one-day declines
(http://www.marketwatch.com/story/investors-dump-us-stock-futures-ahead-of-durable-goods-data-2015-05-26)
in three weeks. The dollar was rallying on the back of
better-than-expected economic news in recent sessions as well as
hawkish comments from Federal Reserve Chairwoman Janet Yellen on
Friday, which strengthened the view that an interest-rate hike
could come this year.
Commodity volatile: On Wednesday, energy (CLN5) and metals
prices were flat after a selloff
(http://www.marketwatch.com/storyno-meta-for-guid). However, the
dollar (DXY)resumed its march higher against most major currencies
(http://www.marketwatch.com/storyno-meta-for-guid).
The Velocity Shares 3X Long Crude ETN (UWTI), which is linked to
the S&P GSCI Crude Oil Index, slid another 1.5% premarket,
after suffering an 8% slide on Tuesday.
Earnings: Reporting ahead of the bell, home builder Toll
Brothers Inc.(TOL) said second-quarter earnings rose 4%
(http://www.marketwatch.com/story/toll-brothers-second-quarter-earnings-rise-4-2015-05-27).
Costco Wholesale Corp.(COST) is projected to report fiscal
third-quarter earnings of $1.15 a share, according to a consensus
survey by FactSet. The warehouse retailer posted earnings of $1.07
a share in the same quarter last year.
Tiffany & Co.(TIF) shares jumped 7.3%, as profit and sales
fell less than expected
(http://www.marketwatch.com/story/tiffany-profit-sales-fall-less-than-expected-2015-05-27).
Michael Kors Holdings Ltd.(KORS) shares plunged 14% after
quarterly profit and the outlook came in short of expectations
(http://www.marketwatch.com/story/michael-korss-stock-tumbles-after-disappointing-results-outlook-2015-05-27).
Movers and shakers: Shares of Workday Inc. (WDAY) slumped 8.4%
after the cloud software company late Tuesday said its loss widened
in the first-quarter
(http://www.marketwatch.com/story/workday-loss-widens-but-revenue-up-57-2015-05-26).
Hormel Foods Corp.(HRL) shares rose 4.4% after the maker of Spam
late Tuesday said it will buy Applegate Farms LLC
(http://www.marketwatch.com/story/hormel-to-buy-organic-meat-maker-applegate-for-775-million-2015-05-26-171031745)
for about $775 million.
For more on today's notable movers read Movers & Shakers
column
(http://www.marketwatch.com/story/costco-tiffany-palo-alto-networks-to-report-quarterly-results-2015-05-27).
Other markets: European stocks climbed after Tuesday's selloff,
while Asia closed mixed.
Subscribe to WSJ: http://online.wsj.com?mod=djnwires