By Ellie Ismailidou and Barbara Kollmeyer, MarketWatch
Ford slumps more than 7% as earnings miss view; Facebook extends
gains on strong results
Wall Street was on track for small losses Thursday, following
disappointing earnings reports from heavyweights Ford and
ConocoPhillips and mixed economic data from the U.S.
The number of people who applied for unemployment benefits
(http://www.marketwatch.com/story/jobless-claims-climb-14000-to-266000-2016-07-28)last
week rose from historical lows, while the nation's trade gap
widened in June to $63.3 billion, as imports rose faster than
exports. Meanwhile, while wholesale inventories were unchanged and
retail inventories inched higher.
After trading with a gain of 64 points earlier, the Dow Jones
Industrial Average futures were off 21 points, or 0.1%, at 18,370,
while S&P 500 futures declined by less than 2 points, or 0.1%
to 2,159. Nasdaq-100 futures were 5.75 points, or 0.1%, lower at
4,702.
Thursday's moves follow a volatile session Wednesday
(http://www.marketwatch.com/story/us-stock-futures-rise-led-higher-by-apple-2016-07-27),
when stocks closed lower after the Federal Reserve hinted at a
September rate increase in its policy statement
(http://www.marketwatch.com/story/fed-appears-more-open-to-september-rate-hike-2016-07-27),
saying near-term risks to the economic outlook have diminished. The
S&P 500 index pulled back 2.6 points to 2,166.58, as losses for
consumer staple such as Coca-Cola (KO) and utilities weighed on the
index.
But on Thursday, market observers were rethinking the Fed
language from that meeting.
"The FOMC minutes do appear to have struck a dovish tone with
investors despite offering a more upbeat assessment of the economy
and highlighting the diminishing near-term risks. This could be
helping to lift sentiment ahead of the open today," said Craig
Erlam, senior market analyst with Oanda, in emailed comments.
Economic data on the calendar include rental vacancy rates for
the second quarter at 10 a.m. Eastern.
Stocks to watch: Shares of ConocoPhilips (COP) erased earlier
losses to trade up 0.7% premarket, despite the fact that the oil
company reported a bigger loss than expected.
(http://www.marketwatch.com/story/conocophillip-loss-widens-as-revenue-slumps-36-2016-07-28)
Ford Motor Co.(F)slumped 7.2% following an earnings miss
(http://www.marketwatch.com/story/fords-stock-tumbles-after-profit-misses-expectations-2016-07-28),
while Dow Chemicals Co.(DOW) inched up 0.9% after earnings and
revenue came in better than forecast by Wall Street.
Colgate-Palmolive Co.(CL) rose 0.9% after the consumer products
firm said profit rose in the second quarter.
(http://www.marketwatch.com/story/colgate-palmolive-shares-rise-after-earnings-beat-estimates-2016-07-28)
Harley-Davidson Inc.(HOG) also beat on both profit and revenue
(https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=6&cad=rja&uact=8&ved=0ahUKEwjY3P-mkZbOAhUDTCYKHVGmBs8QqQIILTAF&url=http%3A%2F%2Fwww.marketwatch.com%2Fstory%2Fharley-davidson-beats-on-earnings-revenue-lowers-2016-motorcycle-shipment-guidance-2016-07-28&v6u=https%3A%2F%2Fs-v6exp1-ds.metric.gstatic.com%2Fgen_204%3Fip%3D205.203.130.22%26ts%3D1469708091514619%26auth%3Dol6dpt42mbijwgltfzjjxqkdfopmhwzt%26rndm%3D0.7774477069103305&v6s=2&v6t=5112&usg=AFQjCNG1hOjwMybsdl4OL7kojLkSNvrvaw&sig2=KsifhvXI0hzUzuk2isGAhQ&bvm=bv.128450091,bs.2,d.dmo),
but shares didn't move premarket.
Hershey(HSY) swung to a profit in the second quarter.
(https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=8&cad=rja&uact=8&ved=0ahUKEwjUqaiykZbOAhWD3SYKHWGQAVsQqQIIMTAH&url=http%3A%2F%2Fwww.marketwatch.com%2Fstory%2Fhershey-co-beats-second-quarter-earnings-expectations-2016-07-28&usg=AFQjCNG6tO8gVxg-k6yqBqTCEYiDGTeLfg&sig2=b8nvyO71rUAmRmkBzu0qXA&bvm=bv.128450091,bs.2,d.dmo)
(https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=8&cad=rja&uact=8&ved=0ahUKEwjUqaiykZbOAhWD3SYKHWGQAVsQqQIIMTAH&url=http%3A%2F%2Fwww.marketwatch.com%2Fstory%2Fhershey-co-beats-second-quarter-earnings-expectations-2016-07-28&usg=AFQjCNG6tO8gVxg-k6yqBqTCEYiDGTeLfg&sig2=b8nvyO71rUAmRmkBzu0qXA&bvm=bv.128450091,bs.2,d.dmo)Shares
of MasterCard Inc. (MA) climbed 1.6% premarket, after the payments
processing and credit card company beat second-quarter profit and
revenue expectations
(http://www.marketwatch.com/story/mastercards-stock-jumps-after-profit-sales-beat-expectations-2016-07-28).
HCA Holdings Inc.(HCA) lost 1.3% after its earnings missed
expectations.
Facebook
(http://www.marketwatch.com/story/facebook-posts-huge-revenue-beat-2016-07-27)(FB)
rose 3.8% ahead of the bell, adding to Wednesday's late-session
gains after soundly beating on earnings and revenue. But the
social-media network's Chief Financial Officer Dave Wehner said the
company expects lower ad revenue growth in the next two quarters
and just modest growth in its ad load.
Read:Facebook's rapid growth is about to slow down
(http://www.marketwatch.com/story/facebooks-rapid-growth-is-about-to-slow-down-2016-07-27)
Shares of Whole Foods Market Inc
(http://www.marketwatch.com/story/whole-foods-profit-falls-sales-slip-2016-07-27-18485051).(WFM)
looked set to add to a nearly 5% late-session drop. That move came
after the upmarket grocer gave a weak forecast for the current
quarter as it booked a fourth-straight quarterly profit fall on
Wednesday.
GoPro Inc
(http://www.marketwatch.com/story/gopro-reports-loss-but-results-beat-estimates-2016-07-27).(GPRO)
swung to a loss, but results still beat expectations, and shares
rose 2.7% in Thursday's premarket session. Groupon Inc
(http://www.marketwatch.com/story/groupon-shares-surge-as-results-top-expectations-2016-07-27-174852644).(GRPN)
soared 25.4% before the open after posting better-than-expected
results late on Wednesday.
Weight Watchers International Inc
(http://www.marketwatch.com/story/weight-watchers-boosts-membership-by-nearly-5-2016-05-04).(WTW)
shares also exploded overnight, with a 13% gain after increasing
its membership rolls for the first time in four years.
After Thursday's close, Alphabet Inc.(GOOGL), Amazon.com
Inc.(AMZN), Expedia Inc.(EXPE) CBS Corp.(CBSA) are expected to
report earnings.
Read:Alphabet earnings bring concern about Google search growth,
revenue
(http://www.marketwatch.com/story/alphabet-earnings-bring-concern-about-google-search-growth-revenue-2016-07-26)
And: Here's what to expect from Amazon earnings
(http://www.marketwatch.com/story/what-to-watch-for-in-amazon-earnings-2016-07-25).
Other markets: The Nikkei 225 index
(http://www.marketwatch.com/story/asian-markets-fall-ahead-of-bank-of-japan-meeting-2016-07-27)
slipped 1.1% as investors stayed cautious about a potential
stimulus plan. The Bank of Japan will wrap up its policy meeting
Friday, and some investors expect it to join forces with the
government to announce a big batch of stimulus measures the same
day.
As the Nikkei fell, the yen moved up against rival currencies,
pushing the dollar to Yen104.70 from Yen105.41 late Wednesday in
New York.
Gold prices surged $16.30, or 1.1%, to $1,343 as some investors
took the view that the Fed really doesn't have the option to raise
interest rates in September.
Check out: Why gold prices spiked after the Fed decision
(http://www.marketwatch.com/story/why-gold-prices-spiked-after-the-fed-decision-2016-07-27)
European stocks struggled amid a batch of big earnings
(http://www.marketwatch.com/story/european-stocks-wobble-as-avalanche-of-earnings-reports-rolls-in-2016-07-28).
Read:Do the math--Brexit really is starting to bite at European
companies
(http://www.marketwatch.com/story/brexit-beats-oil-low-growth-as-hot-topic-during-europes-earnings-season-2016-07-28)
(http://www.marketwatch.com/story/brexit-beats-oil-low-growth-as-hot-topic-during-europes-earnings-season-2016-07-28)--Sara
Sjolin contributed to this article.
(END) Dow Jones Newswires
July 28, 2016 09:01 ET (13:01 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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