News Column

Wall Street Stays Cautious

May 20, 2014



WASHINGTON (Alliance News) - Early indication suggests that Wall Street stocks may open on a nervous note, with the major US index futures pointing to a slightly lower opening on Tuesday. The absence of any major economic catalysts could accentuate the cautious sentiment of traders. A Fed speech scheduled for the day and some retail earnings from companies including Home Depot (HD) could render direction to the markets.

As of 6:15 am ET, the Dow futures are down 5 points, the S&P 500 futures are receding 1.10 points and the Nasdaq 100 futures are slipping 1 point.

US stocks extended their gains on Monday amid the announcements of a couple of major deal news.

On the economic front, Philadelphia Federal Reserve Bank President Charles Plosser is due to speak on the economic outlook in Washington at 12:30 pm ET.

In corporate news, Urban Outfitters (URBN) reported first quarter earnings of 26 cents per share, trailing the 27 cents per share consensus estimate. Net sales rose 6% to USD648.1 million, ahead of expectations.

Photronics (PLAB) reported first quarter earnings that missed estimates, while its revenues were ahead of estimates despite falling year-over-year.

Analog Devices (ADI), Intuit (INTU) and Salesforce.com (CRM) are among the companies due to release their quarterly results after the close of trading.

The major Asian markets ended mixed, with the positive lead from Wall Street generating strength in some of the markets, while the rest declined amid worries concerning the region.

Japan's Nikkei 225 average held above the unchanged line throughout the session before closing up 68.81 points or 0.49% at 14,075. Export stocks were mostly higher but financial and pharma stocks lost ground.

The Australian ignored some weakness in the morning before moving decisively higher in the mid-session. Thereafter, the average hovered in positive territory, ending up 11.40 points or 0.21% at 5,402. Consumer staple, material, financial, telecom and utility stocks saw some strength, while energy stocks retreated.

Hong Kong'sHang Seng Index ended at 22,835, up 130.18 points or 0.57%, and China's Shanghai Composite Index closed 2.94 points or 0.15% higher at 2,008. Meanwhile, the Indonesian Jakarta Composite Index slumped 2.37%. The Malaysian, South Korean and Taiwanese markets also moved to the downside.

European stocks opened amid some apprehension and have moved decisively lower since then.

In corporate news, Credit Suisse (CS) pleaded guilty before US federal prosecutors to one count of conspiring to aid tax evasion over decades and also agreed to pay about USD2.6 billion in penalties.



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Source: Alliance News


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