By Sara Sjolin, MarketWatch
GoPro rallies more than 10% after earnings
U.S. investors face a weak open on Wall Street, with stock
futures inching lower Wednesday, ahead of key economic data and a
Federal Reserve statement that may offer clues about the pace of
rate hikes.
Futures for the Dow Jones Industrial Average (YMM5) slipped 42
points, or 0.2%, to 18,017, while those for the S&P 500 index
(ESM5) lost 5 points, or 0.2% to 2,107.50. Futures for the
Nasdaq-100 index (NQM5) dropped about 13 points, or 0.3%, to
4,503.25.
The benchmarks on Tuesday ended a choppy session slightly higher
(http://www.marketwatch.com/storyno-meta-for-guid), as investors
grappled with disappointing earnings, weaker-than-expected
consumer-confidence data and uncertainty over the Fed
statement.
The central bank kicked off its two-day meeting on Tuesday and
will conclude it later on Wednesday. Its interest-rate statement is
due at 2 p.m. Eastern Time, and investors hope for clues on when
policy makers expect to start tightening monetary policy.
Expectations for a June rate-hike have been dampened after a
string of disappointing economic data, but analysts don't expect
the Fed to acknowledge as much in Wednesday's statement. Read: Fed
not ready to concede it won't hike this summer
(http://www.marketwatch.com/story/fed-not-ready-to-concede-it-wont-hike-this-summer-2015-04-27)
Data: The Fed is keeping a close eye on economic indicators, so
the first estimate of first-quarter U.S. gross domestic product due
out Wednesday at 8:30 a.m. Eastern Time will be watched.
Economists polled by MarketWatch expect to see a slowdown in
growth to 1.1%, down from 2.2% in the fourth quarter. However,
there is a risk that the level could come in even lower, "in which
case the weather will be blamed again," Nour Al-Hammoury, chief
market strategist at ADS Securities, said in a note.
"If this happens, it is likely the Federal Reserve's tone will
remain dovish, but they will probably keep a rate hike on the table
for some time this year," he said.
A disappointing number could then add more pressure on the
dollar (DXY), which has already been sliding all of this week and
continued to fall on Wednesday
(http://www.marketwatch.com/story/dollar-slides-to-almost-2-month-low-ahead-of-fed-2015-04-29).
Elsewhere, a reading on pending-homes sales is due at 10 a.m.
Eastern Time.
Earnings: Ahead of the opening bell, Time Warner(TWX) reported
first-quarter profit and sales that beat expectations. Shares rose
1.9%.
Hardwood-flooring company Lumber Liquidators(LL) said it swung
to a loss of 29 cents a share in the first quarter, missing analyst
forecasts. Shares were down 15% premarket. Lumber Liquidators has
lost 50% of its share price since the beginning of the year, after
it was revealed the company didn't meet emissions standards for
levels of formaldehyde.
Hilton Worldwide Holdings Inc.(HLT) reported a 25% rise in
first-quarter earnings per share
(http://www.marketwatch.com/story/hilton-posts-22-rise-in-first-quarter-profit-2015-04-29)
to 15 cents, up from 12 cents a year ago. Shares rose 1.9%
MasterCard (MA) is forecast to post first-quarter earnings of 80
cents a share.
And after the market closes, Yelp Inc. (YELP) is forecast to
report first-quarter earnings of 2 cents a share.
Movers & shakers: Shares of Twitter Inc.(TWTR) lost 1.7%,
after slumping 18% on Tuesday following the early release of
quarterly results that showed revenue growth
(http://www.marketwatch.com/story/twitter-revenue-disappoints-shares-tumble-2015-04-28-16485335)
fell short of expectations. Analysts at Janney Capital Markets cut
the social-media company to neutral, from buy. Read: Twitter
executives, despite the company's sorry fortunes, are in the money
(http://www.marketwatch.com/story/twitter-executives-despite-the-companys-sorry-fortunes-are-in-the-money-2015-04-28)
GoPro Inc.(GPRO) surged 12% ahead of the bell. The maker of
wearable video cameras said late Tuesday that its first-quarter
profit jumped 52%
(http://www.marketwatch.com/story/gopros-profit-up-sharply-on-rising-popularity-2015-04-28).
(http://www.marketwatch.com/story/gopros-profit-up-sharply-on-rising-popularity-2015-04-28)Kraft
Foods Group Inc.(KRFT) dropped 2.5% after the packaged-food major
late Tuesday reported a drop in first-quarter profit and sales
(http://www.marketwatch.com/story/kraft-foods-profit-falls-as-sales-dip-2015-04-28).
Wynn Resorts Ltd.(WYNN) slid 11% premarket after the hotel
operator cut its dividend on Tuesday and said it swung to a
quarterly loss.
Shares of Starwood Hotels & Resorts Worldwide Inc.(HOT)
climbed 8.4% premarket after the hotel operator said it would
explore strategic and financial measures
(http://www.marketwatch.com/story/starwood-hotels-stock-surges-as-company-looks-to-boost-shareholder-value-2015-04-29)
to increase shareholder value.
Apple Inc.(AAPL) could also be active, after Goldman Sachs
lifted the price target on the iPhone maker to $163 from $145,
saying they are confident the bull case for the stock will continue
(http://www.marketwatch.com/story/goldman-stays-bullish-on-apple-lifts-price-target-2015-04-29).
Other markets: European stock markets seesawed between small
gains and losses (http://www.marketwatch.com/storyno-meta-for-guid)
as investors continued to monitor the progress in Greece's bailout
talks. Asia closed mostly lower
(http://www.marketwatch.com/storyno-meta-for-guid), with Hong Kong
shares down 0.2%. Metals and energy
(http://www.marketwatch.com/storyno-meta-for-guid) futures were
lower across the board.
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