By Sara Sjolin, MarketWatch
J.P. Morgan, Wells Fargo results on tap premarket
LONDON (MarketWatch) -- U.S. stocks were poised for a rebound on
Tuesday, with futures ticking higher ahead of retail-sales data and
the first slew of prominent bank earnings, including J.P. Morgan
results.
Futures for the Dow Jones Industrial Average (YMM5) gained 32
points, or 0.2%, to 17,942, while those for the S&P 500 index
(ESM5) climbed 3.25 points, or 0.2%, to 2,089.75. Futures for the
Nasdaq 100 index (NQM5) added 5 points, or 0.1%, to 4,408.25.
On Monday, the benchmarks settled lower in a thinly traded
session (http://www.marketwatch.com/storyno-meta-for-guid) amid
concerns the first-quarter earnings season will be a disappointing
affair.
"Thanks to the strength of the dollar and lower energy prices,
analysts have been progressively downgrading their estimates of
profit growth. So far, U.S. equity markets have taken these
earnings downgrades in their stride," said Rebecca O'Keeffe, head
of investment at stockbroker Interactive Investor, in a note.
"However, if there is evidence that the picture is not improving
in Q2, the market may find it more difficult to sustain current
valuations, especially if rising employment levels raise the
prospect of a potential June rate hike from the Fed," she
added.
Earnings: The earnings season gets into full swing on Tuesday,
when the first big banking reports are expected to come out. J.P.
Morgan Chase & Co. (JPM) is forecast
(http://www.marketwatch.com/story/what-to-look-for-in-jp-morgans-earnings-2015-04-13)
to post first-quarter earnings of $1.39 a share, according to a
consensus estimate from FactSet.
Wells Fargo & Co.(WFC) is likely to post
(http://www.marketwatch.com/story/what-to-look-for-in-wells-fargo-earnings-2015-04-13)
first-quarter earnings of 98 cents a share.
Aside from the banking sector, drug maker Johnson &
Johnson(JNJ) is projected to post first-quarter earnings of $1.53 a
share.
Intel Corp.(INTC) is also slated to report after the bell,
expected to post first-quarter earnings of 41 cents a share.
CSX Corp.(CSX) is expected to report first-quarter earnings of
44 cents a share after the market closes. CSX shares started
falling in sympathy after hours Monday following Norfolk Southern
Corp.'s (NSC) profit warning
(http://www.marketwatch.com/story/norfolk-southern-view-misses-estimates-2015-04-13)
owing to lighter-than-expected coal shipments. Shares of both
companies were unchanged premarket Tuesday.
Other stocks to watch: Shares of Best Buy Co. (BBY) could be
active after the electronics retailer late Monday said its
chairman, Hatim Tyabji, will retire on June 9
(http://www.marketwatch.com/story/best-buy-chairman-hatim-tyabji-to-retire-2015-04-13)
after three years in the role.
Data: There is also plenty to look for on the data calendar
Tuesday. At 8:30 a.m. Eastern Time, retail sales for March are due
and expected to show a 1.1% rise
(http://www.marketwatch.com/story/march-retail-report-may-show-consumers-revving-up-spending-2015-04-13).
Also at 8:30 a.m. Eastern, the producer-price index for March
will be out. The NFIB small-business index for March is due at 9
a.m., followed by February business inventories at 10 a.m.
Minneapolis Fed President Narayana Kocherlakota will speak at an
open forum about the economy in Winona, Minn., at 8 p.m. Eastern.
Kocherlakota is not a voting member of the Federal Open Market
Committee this year.
Other markets: Asia markets closed mixed
(http://www.marketwatch.com/storyno-meta-for-guid), while European
stocks were lower
(http://www.marketwatch.com/storyno-meta-for-guid) almost across
the board amid ongoing concerns about Greece's bailout program.
Oil prices (CLK5) kept moving higher
(http://www.marketwatch.com/storyno-meta-for-guid) on hopes U.S.
shale oil production has peaked and may start falling. Metals fell
(GCM5), while the dollar (DXY) was little changed.
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