WASHINGTON (Alliance News) - Sentiment on Wall Street has turned cautious on Friday after the averages showed resilience yesterday. The markets' resolve is likely to be put to test once again, as traders get to digest another spate of earnings flow and economic data on durable goods orders. Tech earnings released yesterday after the markets close were largely disappointing. Global cues are not very encouraging either, as Asian stocks closed mixed, while the European markets are seeing lackluster sentiment.
At 6:15 am ET, the Dow futures are slipping 20 points, the S&P 500 futures are receding 3 points and the Nasdaq 100 futures are moving down 13.25 points.
US stocks ended a session of directionless trading on Thursday narrowly mixed, as mixed earnings and economic data, IMF's weak global forecast and geopolitical tensions kept traders at bay.
On the economic front, the Commerce Department is scheduled to release its durable goods orders report for June at 8:30 am ET. Economists expect durable goods order growth of 0.5% month-over-month, while excluding transportation, orders may have risen 0.7%.
In corporate news, Amazon (AMZN) reported a loss for its second quarter that was wider than expected, while its revenues were in line. The company's third quarter revenues guidance was in line. Baidu.com's (BIDU) second quarter results topped expectations and its third quarter guidance was strong.
Lattice Semiconductor (LSCC) reported better than expected second quarter results but issued weak revenue growth guidance for the third quarter. Meanwhile RF Micro Devices (RFMD) issued strong second quarter guidance after reporting strong first quarter results. Netgear (NTGR) reported second quarter earnings that beat estimates, while its revenues were below the consensus estimate. The company also issued weak third quarter revenue guidance.
Altera (ALTR) reported second quarter results that exceeded estimates and forecast sequential sales growth of -2% to 2%. Meanwhile, KLA-Tencor's (KLAC) fourth quarter earnings trailed estimates, while its revenues were ahead of expectations. The company's fourth quarter guidance was weak.
Maxim Integrated's (MXIM) fourth quarter results and guidance were below estimates. Flextronics (FLEX) reported better than expected first quarter results but its second quarter guidance was lukewarm. Ingram Micro's (IM) second quarter earnings and revenues were above estimates and its third quarter revenue guidance was in line.
Starbucks (SBUX) reported third quarter earnings and revenues exceeded estimates, while its full year adjusted earnings per share guidance was lukewarm.
Republic Services (RSG) announced a 2% increase in its regular quarterly dividend to 28 cents per share after reporting better than expected second quarter results and reaffirmed its full year earnings guidance.
The major Asian markets closed on a mixed note, tracking the mixed cues from Wall Street overnight. The Chinese, Hong Kong, New Zealand and South Korean markets closed higher, while most of the remaining major markets in the region moved to the downside.
The Japanese market took cues from a subdued yen and advanced solidly in the session following the declines in the previous two sessions. The Nikkei 225 average ended up 173.45 points or 1.13% at 15,458. However, Australia's All Ordinaries was down 2.60 points or 0.05% at 5,574 at the close of trading. Hong Kong'sHang Seng Index ended at 24.219, up 77.02 points or 0.32%, and China's Shanghai Composite Index closed 21.55 points or 1.02% higher at 2,127.
Meanwhile, inflation data released by Japan'sMinistry of Internal Affairs and Communication showed that annual consumer price inflation slowed to 3.5% in June from 3.7% in May. Core consumer price inflation slowed to 3.3%, in line with expectations.
European stocks have opened lower and are continuing to see weakness. While the French market continues to slide, the German and the UK markets have recouped some of their early losses. Traders digested mixed economic readings and mostly positive earnings against the backdrop of raging geopolitical tensions.
In corporate news, Air France-KLM reported a narrower loss for its second quarter and backed its earnings outlook for the year. The company also said it would continue with its cost cutting measures. Lafarge reported a small drop in its second quarter sales and EBITDA. BskyB announced a deal to buy 21st Century Fox's 57% stake in Sky Deutschland and also Sky Italia from the same owner in a 7 billion pound deal. Vodafone's (VOD) first quarter organic service revenue rose 10.3%.
On the economic front, research group GfK said its forward-looking consumer sentiment index for Germany rose to 9 in August from 8.9 in July. This was the highest value registered since December 2006, when the indicator was at 9.1 points. The index was expected to remain unchanged at 8.9. Meanwhile, business confidence in Germany waned, according to the results of a survey by the IfO. The business confidence index fell more than expected to 108 in July from 109.7 in June.
Advance estimates released by the UK Office for National Statistics showed that the UK economy expanded 0.8% quarter-over-quarter and by 3.1% year-over-year, with both the sequential and year-over-year growth coming in line with expectations.