By Sara Sjolin, MarketWatch
Alcoa shares drop premarket after revenue miss
LONDON (MarketWatch) -- U.S. stock futures trimmed earlier
losses on Thursday, as investors continued to digest Federal
Reserve minutes that showed policy makers are split on the timing
of the first interest-rate hike.
Market participants were gearing up for more earnings, after
aluminum giant Alcoa late Wednesday unofficially kicked off the
first-quarter season on a downbeat note
(http://www.marketwatch.com/story/alcoa-swings-to-profit-but-revenue-misses-2015-04-08).
Futures for the Dow Jones Industrial Average (YMM5) fell 4
points, or less than 0.1%, to 17,825, while those for the S&P
500 index (ESM5) lost 1.65 points, or 0.1%, to 2,074.25. Futures
for the Nasdaq 100 (NQM5) dropped 4.50 points, or 0.1%, to
4,370.25.
The indexes started to move lower during the European session,
but have pared back from their intraday lows.
FOMC reaction: "I think we could continue to see futures waver
ahead of the open, with it being such a data-light session and the
FOMC minutes not inspiring any significant movement," said Craig
Erlam, senior market analyst at forex broker Oanda, in emailed
comments.
The record from the Federal Open Market Committee's March
meeting, released on Wednesday, showed several members supported a
June rate hike
(http://www.marketwatch.com/story/low-bar-set-for-fed-rate-hike-minutes-show-2015-04-08),
but also that others thought a rate hike wouldn't be warranted
until later in the year as low oil prices and the strong dollar
would likely hold inflation down. U.S. stock markets ended the
Wednesday session slightly higher after the minutes
(http://www.marketwatch.com/storyno-meta-for-guid).
"What has been taken as dovish FOMC minutes didn't really shed
any new light on the path for interest rates. June has looked
unlikely for a while now, and any month beyond that will depend on
the data," Erlam said.
Data: Two data releases on Thursday could help shed light on the
health of the U.S. economy. Weekly jobless claims are due at 8:30
a.m. Eastern Time, and are expected to show that 285,000 Americans
filed for unemployment benefits last week. That would be an
increase from the almost 15-year low of 268,000 recorded the week
before
(http://www.marketwatch.com/story/jobless-claim-sink-to-268000-near-lowest-levels-since-2000-2015-04-02).
At 10 a.m. Eastern, wholesale inventories for February are on
tap.
There were no Fed speakers listed for Thursday.
Stocks to watch: Shares of Alcoa Inc.(AA) lost 2.7% after the
aluminum maker late Wednesday reported revenue that missed
forecasts
(http://www.marketwatch.com/story/alcoa-swings-to-profit-but-revenue-misses-2015-04-08)
and pointed to a challenging outlook.
Alcoa's earnings report is considered the unofficial kickoff to
the earnings season, and this season is feared to be weak as the
effects from a stronger dollar and lower oil prices are felt.
Zynga Inc.(ZNGA) tanked 9.7% ahead of the bell after the
video-game maker late Wednesday said Chief Executive Don Mattrick
will leave the company effective April 8
(http://www.marketwatch.com/story/zynga-ceo-don-mattrick-to-leave-company-founder-mark-pincus-to-be-ceo-2015-04-08-16911119),
to be replaced by founder and chairman Mark Pincus.
Perrigo Co.(PRGO) picked up 3.6% ahead of the market open after
a late Wednesday bid from rival drug maker Mylan NV
(http://www.marketwatch.com/story/mylan-offers-to-buy-perrigo-for-205-a-share-in-cash-and-stock-2015-04-08)(MYL).
U.S.-listed shares of Novogen Ltd. (NVGN) surged 44% premarket
after the Australian biotech company said its experimental drug
Anisina was shown to kill melanoma cells.
U.S.-listed shares of Royal Dutch Shell PLC(RDSB) slipped 1.9%,
building on losses from Wednesday when the oil giant said it has
agreed to buy BG Group PLC for almost $70 billion
(http://www.marketwatch.com/story/shell-to-buy-bg-group-in-696-billion-deal-2015-04-08).
Read: Who wins, who loses in blockbuster M&A deals
(http://www.marketwatch.com/story/who-wins-who-loses-in-blockbuster-ma-deals-2015-04-09)
Bed Bath & Beyond Inc.(BBBY) could also be active, after the
retailer on Wednesday reported fourth-quarter earnings in line with
forecasts.
Shares of Walgreens Boots Alliance Inc.(WBA) gained 0.8% after
the drugstore chain reported profit ahead of expectations
(http://www.marketwatch.com/story/walgreens-stock-rises-after-profit-beats-expectations-2015-04-09).
Constellation Brands Inc.(STZ) inched 0.8% higher after the
alcoholic beverages company said it will start paying a quarterly
dividend
(http://www.marketwatch.com/story/constellation-brands-to-start-paying-a-quarterly-dividend-2015-04-09).
Other markets: Asian stock markets closed mostly higher
(http://www.marketwatch.com/storyno-meta-for-guid), powered by a
2.7% jump for the Hang Seng Index . Stocks in Europe followed suit,
with the Stoxx Europe 600 index on track to log an all-time closing
high (http://www.marketwatch.com/storyno-meta-for-guid).
Oil (CLK5) recovered a bit
(http://www.marketwatch.com/story/oil-slightly-recovering-after-previous-sessions-6-fall-2015-04-09)
from Wednesday's more-than-6% slide. Metals were mixed, while the
ICE dollar index (DXY) advanced.
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