💎 Fed’s first rate cut since 2020 set to trigger market. Find undervalued gems with Fair ValueSee Undervalued Stocks

US STOCKS-Futures lower as investors await earnings blitz

Published 01/25/2011, 07:18 AM
Updated 01/25/2011, 07:20 AM

* DuPont, Verizon, Travelers report results

* Britain's economy unexpectedly contracts

* Home prices, consumer confidence data on tap

* Futures down: Dow 12 pts, S&P 4.1 pts, Nasdaq 10 pts

By Ryan Vlastelica

NEW YORK, Jan 25 (Reuters) - U.S. stock index futures were modestly lower on Tuesday as investors awaited another round of corporate earnings and continued to view the European economy with caution.

* European shares were pressured after Britain's economy unexpected contracted in the fourth quarter and Spanish banks retreated after recent gains.

* Dow component DuPont and Co reported a fourth-quarter profit that beat expectations and raised its 2011 outlook. The stock edged 0.5 percent higher to $49.15 in premarket trading.

* Verizon Communications Inc and Travelers Cos Inc, two Dow components, also reported results early Tuesday. Verizon slid 0.7 percent to $35 before the bell as its profit just missed expectations.

* Equities have advanced in recent weeks, in part on anticipation of strong corporate results. Some weak bank earnings last week contributed to a stalled rally, and the S&P ended a seven-week run of gains.

* In a major week for earnings, Johnson & Johnson, 3M Co and U.S. Steel Corp are also due to report later in the day.

* S&P 500 futures fell 4.1 points and were below fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures lost 12 points, and Nasdaq 100 futures dropped 10 points.

* Shares of American Express Co and Texas Instruments Inc fell in extended trading late Monday after reporting results. American Express was pressured by an uncertain regulatory outlook, while TI's gross margins disappointed investors. and

* On the economic data front, the November S&P Case/Shiller Home Price Index will come out at 9 a.m. EST (1400 GMT). Economists expect a drop of 0.8 percent versus a 1.0 percent fall in the previous month.

* The Conference Board will release its January reading on consumer confidence at 10 a.m. EST (1500 GMT) Economists see confidence rising slightly to 54.3 from December's 52.5.

* The International Monetary Fund revised its forecast for world growth higher, citing the impact from a package on U.S. taxes.

* U.S. President Barack Obama will give his annual State of the Union address Tuesday evening and is expected to focus on jobs and the economy.

* Stocks rose Monday on strength in natural resource and technology shares as the recent positive momentum returned.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.