News Column

Wall Street Holds Onto Slender Optimism

August 27, 2014



WASHINGTON (Alliance News) - Trading in the US index futures suggests that traders may still muster up courage to expand holdings in stocks despite the recent buoyancy. The major US index futures point to a higher opening on Wednesday after Asian stocks closed higher, while the European markets are seeing a lackluster mood amid the release of some insipid economic data. With not much economic and corporate news to guide trading, the markets may face difficulty sustaining the momentum, especially ahead of the release of some market moving economic data due over the next two days.

As of 6:15 am ET, the Dow futures are rising 18 points, the S&P 500 futures are adding 1.50 points, while the Nasdaq Composite Index is gaining 3.50 points.

US stocks extended their gains on Tuesday, helped by some positive economic data, M&A activity and hopes of the resolution of the Ukrainian crisis.

On the economic front, the Energy Information is scheduled to release its weekly petroleum status report for the week ended August 22 at 10:30 am ET. The Treasury will release the results of its auction of 5-year notes at 1 pm ET.

In corporate news, St. Jude (STJ) announced that the FDA has notified the company that issues cited in the Plano, Texas facility's warning letter have been addressed.

Starwood Hotels (HOT) announced the appointment of Thomas Mangas as its CFO, effective September 29, 2014.

Bob Evans (BOBE) reported first quarter adjusted earnings that came in line with estimates, while it revenues declined 1% and also missed the consensus estimate. However, the company confirmed its 2015 outlook, which surrounds the consensus estimate.

Analog Devices (ADI) reported in line third quarter earnings and better than expected revenues. The company issued an upbeat guidance for its fourth quarter.

Aruba Networks (ARUN) reported better than expected fourth quarter results and also raised its 2015 non-GAAP operating margin guidance, premised a cost optimization plan that includes the elimination of some positions.

TiVo (TIVO) reported second quarter earnings that beat estimates on strong subscriber growth. However, the company's third quarter service and technology revenue guidance was soft.

Smith & Wesson's (SWHC) first quarter earnings were ahead of estimates by a penny despite declining sharply. The company's revenues were below estimates and its full year guidance was weak.

Dycom Industries (DY) reported better than expected fourth quarter earnings but it revenues that trailed expectations. The company's first quarter earnings guidance was below estimates, while its revenue guidance was in line.

The Asian markets ended mostly higher, joining the global markets in their rally overnight. The Hong Kong market bucked the uptrend with a moderate retreat.

The Japanese market closed slightly higher, as the yen rebounded following its losses in the New York session yesterday. The Nikkei 225 average opened higher and held above the unchanged line in the morning. After losing ground in the afternoon, the index recovered in late trading before ending the session 13.60 points or 0.09% higher at 15,535. Export stocks ended mostly higher, while retail, utility and real estate stocks came under selling pressure.

Australia's All Ordinaries hovered above the unchanged line throughout the session, ending up 14.40 points or 0.26% at 5,649. Financial, healthcare and material stocks advanced, while telecom and energy stocks retreated,

China's Shanghai Composite Index ended 2.36 points or 0.11% higher at 2,210, while Hong Kong'sHang Seng Index closed at 24,919, down 155.75 points or 0.62%.

On the economic front, the results of a survey by Westpac and MNI showed that its consumer sentiment index for China fell to 113.3 in August from 114.8 July, suggesting slight weakening of morale.

European stocks are showing a lack of direction, given a lack of any clinching catalysts, especially as the markets have run up strongly in recent sessions.

On the economic front, the results of the GfK's survey showed that its forward looking consumer confidence indicator fell to 8.6 in September from 8.9 in August. Economists expected the index to have fallen 0.1 points to from the previously reported reading of 9.

The German Federal Statistical Office reported that German import prices fell 1.7% year-over-year in July following the 1.2% drop in June. Economists expected a 1.4% drop for the month. Export prices fell 0.1%, the same rate of decline as in the previous month.



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Source: Alliance News


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