By Anora Mahmudova and Sara Sjolin, MarketWatch
Facebook slips premarket after revenue takes currency hit
U.S. stocks were poised for a pullback on Thursday, as futures
dropped amid a cascade of earnings reports led out by General
Motors, Procter & Gamble and Caterpillar.
Market reaction to a surprise uptick in the weekly jobless
claims was mild, as futures stayed lower.
Investors also are waiting for new home-sales data, coming a day
after a stellar reading on existing-home sales.
Futures for the Dow Jones Industrial Average (YMM5) dropped 62
points, or 0.3%, to 17,882, while those for the S&P 500 index
(ESM5) fell 7.45 points, or 0.4%, to 2,092. Futures for the
Nasdaq-100 index (NQM5) gave up 15.25 points, or 0.3%, to 4,430.2,
indicating the benchmark will struggle to reach a record on
Thursday.
On Wednesday, the Nasdaq (RIXF) rose for a third straight
session (http://www.marketwatch.com/storyno-meta-for-guid) to sit
only 13 points below its record close, reached on March 10, 2000.
The other benchmarks also climbed, getting a boost from
better-than-expected earnings and the existing-homes data.
Data: The number of people who applied for regular state
unemployment-insurance benefits ticked up 1,000 to 295,000 in the
week that ended April 18, signaling a low level of layoffs,
according to government data released Thursday.
At 9:45 a.m. Eastern, Markit's preliminary report on the
manufacturing purchasing managers index for April is due. Flash
PMIs out of Europe released earlier on Thursday showed growth
weakened at the start of the second quarter
(http://www.marketwatch.com/story/eurozone-economy-slows-in-april-pmis-show-2015-04-23).
More housing numbers are due on Thursday, with new-home sales
for March on tap at 10 a.m. Eastern. Economists surveyed by
MarketWatch expect the annual rate to drop to 504,000 after jumping
to a seven-year high in February
(http://www.marketwatch.com/story/what-winter-blahs-sales-of-new-homes-hit-7-year-peak-2015-03-24).
Earnings: On an very busy day for earnings, shares of eBay Inc.
jumped 4.4% after earnings showed its PayPal unit brought more
revenue that its core marketplace division.
General Motors(GM.XX) earnings disappointed, hurt by stronger
currency and weaker overseas performance. Shares fell 2%.
Caterpillar Inc.(CAT) posted much better-than-expected earnings
and lifted its full-year outlook.
Dow Chemical Co.(DOW) climbed 1% ahead of the bell after the
company posted better-than-forecast first quarter earnings.
Dunkin' Brands Group Inc.(DNKN)reported first-quarter earnings
above analyst forecasts and boosted its 2015 outlook
(http://www.marketwatch.com/story/dunkin-brands-boosts-2015-outlook-2015-04-23),
sending the shares up 6.9% ahead of the market open.
Also reporting premarket, Eli Lilly & Co.(LLY) said adjusted
earnings per share rose to 87 cents, beating expectations of 76
cents.
Tech giants fill out the results docket after the market closes.
Google Inc.(GOOGL) is forecast to post first-quarter earnings
(http://www.marketwatch.com/story/what-to-watch-for-in-googles-earnings-2015-04-20)
of $6.61 a share, while Microsoft Corp. (MSFT) is expected to
report earnings
(http://www.marketwatch.com/story/what-to-watch-for-in-microsofts-earnings-2015-04-21)
of 51 cents a share in the first quarter.
Amazon.com Inc.(AMZN) is likely to post a loss
(http://www.marketwatch.com/story/what-to-watch-for-in-amazons-earnings-2015-04-20)
of 16 cents a share in the first quarter.
StarbucksCorp.(SBUX) is forecast to post fiscal second-quarter
earnings
(http://www.marketwatch.com/story/what-to-look-for-in-starbucks-earnings-2015-04-20)
of 33 cents a share.
Movers and shakers: Shares of Facebook Inc.(FB) lost 2% ahead of
the bell after the social-media company late Wednesday said
currency effects hit its first-quarter revenue
(http://www.marketwatch.com/story/facebook-revenue-hit-by-currency-impact-2015-04-22),
which came in below analyst expectations.
Qualcomm Inc.(QCOM) lost 2.4% premarket. The chip maker late
Wednesday reported a slump in second-quarter earnings
(http://www.marketwatch.com/story/qualcomm-beats-earnings-cuts-semiconductor-outlook-2015-04-22).
AT&T Inc. (T) ticked 1.5% higher on the back of a slightly
better-than-expected earnings report on Wednesday
(http://www.marketwatch.com/story/att-adds-441000-core-wireless-subscribers-2015-04-22-164851122).
U.S.-listed shares of Ericsson AB (ERICY) tanked 13% after the
Swedish telecom-equipment maker posted earnings below forecasts
(http://www.marketwatch.com/story/ericsson-posts-weaker-than-forecast-profit-2015-04-23),
saying higher operating costs and lower spending by the U.S.
network operators had weighed on its earnings.
Arris Group Inc. (ARRS) rallied 16% after the network-gear maker
said it is acquiring U.K. tech company Pace PLC for $2.1 billion.
Pace shares surged 33% in London.
Read more about Thursday's jumpiest stocks in the Movers &
Shakers column
(http://www.marketwatch.com/story/gm-google-microsoft-amazon-starbucks-earnings-in-focus-2015-04-23)
Other markets:European stocks traded mostly lower
(http://www.marketwatch.com/storyno-meta-for-guid) after the
disappointing PMIs. Investors are also closely monitoring news
about Greece's reform talks ahead of a key meeting of eurozone
finance ministers on Friday. Greek Prime Minister Alexis Tsipras is
due to meet German Chancellor Angela Merkel in Brussels on
Thursday.
Asian markets closed mixed
(http://www.marketwatch.com/story/hong-kong-stocks-slip-after-soft-china-data-2015-04-23),
while metals traded higher. Oil prices
(http://www.marketwatch.com/storyno-meta-for-guid)(CLM5) slipped
and the ICE dollar index
(http://www.marketwatch.com/storyno-meta-for-guid)(DXY) was flat
around 97.96.
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