By Sara Sjolin, MarketWatch
GoPro rallies more than 10% after earnings
U.S. investors face another wobbly day on Wall Street, with
stock futures struggling for direction early Wednesday as investors
wait for key economic data and a Federal Reserve statement that
could hint at the timing of its next rate hike.
Earnings from Time Warner Inc. (TWX), MasterCard Inc. (MA) and
Lumber Liquidators Holdings Inc. (LL) will also be closely
watched.
Futures for the Dow Jones Industrial Average (YMM5) slipped 3
points to 18,055, while those for the S&P 500 index (ESM5) lost
0.75 point to 2,111.25. Futures for the Nasdaq 100 index (NQM5)
dropped 6.25 points to 4,509.50.
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. There will
be no press conference after this meeting. 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's 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) is
projected to report first-quarter earnings of $1.09 a share,
according to a consensus survey by FactSet.
MasterCard (MA) is forecast to post first-quarter earnings of 80
cents a share, while hardwood-flooring company Lumber
Liquidators(LL) is expected to report earnings of 16 cents a share
in the first quarter. 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.
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) inched 0.4%
lower premarket, 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. 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 11% 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).
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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