MARKET SNAPSHOT: U.S. Stock Futures Rise, Led Higher By Apple
July 27 2016 - 8:13AM
Dow Jones News
By Victor Reklaitis, MarketWatch
Fed statement, more earnings reports also grab the spotlight
U.S. stock futures advanced Wednesday, as investors cheered
Apple Inc.'s earnings and waited for a Federal Reserve statement
due in the afternoon.
S&P 500 futures rose by 4.20 points, or 0.2%, to 2,167.50,
while Dow Jones Industrial Average futures tacked on 47 points, or
0.2%, to 18,445. Nasdaq-100 futures jumped by 38.25 points, or
0.8%, to 4,702.
Apple shares (AAPL) gained 7% in premarket action after the
iPhone maker late Tuesday posted quarterly profit that dropped from
a year ago, but beat expectations
(http://www.marketwatch.com/story/apple-earnings-weighed-down-by-iphone-slump-2016-07-26-16485385).
Revenue at the world's largest company by market value also fell,
yet topped Wall Street's forecasts.
Read:iPhone SE, iPad Pro throw new wrinkle into Apple finances
(http://www.marketwatch.com/story/iphone-se-ipad-pro-throw-new-wrinkle-into-apple-finances-2016-07-26)
And:Analysts upbeat on Apple as 'toughest two quarters' now
behind it
(http://www.marketwatch.com/story/apples-earnings-analysts-upbeat-as-toughest-two-quarters-now-behind-it-2016-07-27)
On the Fed front, the U.S. central bank is expected to stand pat
on interest rates as it releases a policy statement at 2 p.m.
Eastern Time. Traders want to see if Fed chief Janet Yellen and her
colleagues offer any signals on the possibility of a September rate
hike
(http://www.marketwatch.com/story/what-to-expect-in-the-fed-statement-next-week-2016-07-22).
Read:Why the Fed may want to take away the stock market's punch
bowl
(http://www.marketwatch.com/story/why-the-fed-may-want-to-lurch-for-the-punch-bowl-2016-07-26)
The key is whether the Fed's statement will "build expectations
of a hike in the second half of the year or deliver a more dovish
message highlighting the heightened risks, including Brexit," said
Craig Erlam, senior market analyst at Oanda, in a note.
"As it stands, the markets have once again come around to the
idea that there will be another hike this year, pricing in a 51%
chance of it happening by December," he added.
On Tuesday, the S&P 500 and Dow finished little changed,
though the Nasdaq Composite rose to a 2016 closing high
(http://www.marketwatch.com/story/us-stock-futures-waver-ahead-of-fed-key-earnings-2016-07-26).
Other markets: Oil futures traded lower, while European stocks
gained. Asian markets were mixed -- with the Nikkei up 1.7%, but
Shanghai down 1.9% -- as investors digested conflicting reports
(http://www.marketwatch.com/story/dollar-rises-against-yen-amid-conflicting-reports-about-japan-stimulus-2016-07-27)
about the Japanese government's soon-to-be-released stimulus
measures. Gold futures edged down, while the ICE U.S. Dollar Index
was slightly higher.
Economic news: Before the Fed statement hits, investors are due
to get a June reading on durable goods orders at 8:30 a.m. Eastern,
followed by a June report on pending home sales at 10 a.m.
Eastern.
Individual movers: Shares in Twitter Inc.(TWTR) fell 10% in
premarket trading after the social media company's disappointing
earnings report late Tuesday
(http://www.marketwatch.com/story/analog-devices-agrees-to-148-billion-deal-for-linear-technology-2016-07-26).
Linear Technology Corp.(LLTC) dropped 2% premarket after Analog
Devices Inc.(ADI) on Tuesday agreed to acquire its fellow chip
maker
(http://www.marketwatch.com/story/analog-devices-agrees-to-148-billion-deal-for-linear-technology-2016-07-26)
in a cash-and-stock deal worth $14.8 billion.
Coca-Cola Co.(KO) shares slid 2% premarket after the drinks
giant posted weaker-than-expected quarterly sales
(http://www.marketwatch.com/story/coca-cola-shares-fall-after-sales-miss-estimates-2016-07-27),
while Boeing Co.(BA) gained 2% following a smaller-than-anticipated
quarterly loss
(http://www.marketwatch.com/story/boeing-shares-climb-after-smaller-than-expected-second-quarter-loss-2016-07-27).
Comcast Corp.(CMCSA) was also among the companies on the
earnings docket before the open, with shares in the cable giant
rising 4% after its results beat forecasts
(http://www.marketwatch.com/story/comcast-revenue-beats-as-video-subscribers-improve-2016-07-27).
Facebook Inc.(FB) and Whole Foods Market Inc. (WFM) are among
those due to report after the market's close.
Read earnings previews for Facebook
(http://www.marketwatch.com/story/what-to-expect-when-facebook-reports-earnings-2016-07-25)
and
(http://www.marketwatch.com/story/what-to-look-for-in-comcast-earnings-2016-07-26)Whole
Foods
(http://www.marketwatch.com/story/what-to-watch-for-in-whole-foods-earnings-2016-07-26).
(END) Dow Jones Newswires
July 27, 2016 07:58 ET (11:58 GMT)
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