By Barbara Kollmeyer, MarketWatch
Retailers to report and new-home sales on tap
MADRID (MarketWatch) -- Wall Street may struggle with its record
run if stock futures are any guide for Tuesday, as investors got
cautious ahead of another day of testimony by Federal Reserve
Chairwoman Janet Yellen, and after downbeat results from
Hewlett-Packard Inc.
New-home sales data, and earnings from Target Corp., Dollar Tree
Inc. and Lowe's Cos. are also on tap for Tuesday.
Futures for the Dow Jones Industrial Average (DJH5) were largely
flat at 18,181, while those for the S&P 500 index (SPH5) were
down 2.6 points to 2,110.70. Futures for the Nasdaq-100 index
(NDH5) fell 5 points to 4,442.75.
Hewlett-Packard (HPQ) could be adding to that pressure on the
tech index, with shares down nearly 8% in thin premarket trading.
The company said first-quarter revenue
(http://www.marketwatch.com/story/comcast-h-p-macys-first-solar-earnings-in-focus-2015-02-24)
fell short of Wall Street's expectations, and it also cut its 2015
outlook to adjust for a stronger dollar.
Modest gains for Wall Street on Tuesday still left markets in
record territory. The S&P 500 (SPX) and Dow industrials (DJI)
each nabbed new closing records, at 2,115.48 and 18,209.19,
respectively. The Nasdaq Composite (RIXF) rose 0.1%, leaving it
just 1.6% off its March 2000 peak and advancing for the 10th
straight session in a row.
Read more: What's changed since the last time the Nasdaq was at
5,000?
(http://www.marketwatch.com/story/six-differences-between-now-and-last-time-nasdaq-was-at-5000-2015-02-24)
Stocks got a lift after Federal Reserve Chairwoman Janet
Yellen's testimony to the Senate reassured watchers that a rate
hike might not occur until the second half of the year.
Read more: Yellen prepares markets for a less-patient Fed
(http://www.marketwatch.com/story/yellen-prepares-markets-for-less-patient-fed-2015-02-24)
(http://www.marketwatch.com/story/yellen-prepares-markets-for-less-patient-fed-2015-02-24)"Answering
a question about inflation, she concluded that she cannot see any
evidence that inflation will rise anytime soon. So the June rate
hike is off the table, especially if tomorrow's CPI slows any
further," said Nour Al-Hammoury, chief market strategist at ADS
Securities in Abu Dhabi, in a note to investors.
"The more the U.S. figures disappoint, the more the U.S.
equities will keep on rising," he said.
Yellen heads back for a second day of testimony to Congress on
Wednesday, at 10 a.m. Eastern Time. At the same time, new-home
sales for January will be released.
Retailers in focus:Target (TGT) will report ahead of the bell on
Wednesday. The retailer is expected to post earnings of $1.46 per
share in the fourth quarter, according to a consensus survey by
FactSet.
Lowe's (LOW)(LOW) shares rose 2.5% after the home-improvement
retailer posted a 47% jump in quarterly earnings.
Campbell Soup Co.(CPB)(CPB)(CPB) met adjusted earnings estimates
on Wall Street, but fell short on its outlook for 2015. Chesapeake
Energy Corp.(CHK) shares slid 3% after a profit miss.
Late Tuesday, First Solar Inc.(FSLR) reported that its profit
nearly tripled in the fourth quarter. Shares were up nearly 3% in
premarket.
Dollar Tree(DLTR) and Salesforce.com Inc.(CRM) are also due to
report.
(CRM)Read more: Target, Dollar Tree, Salesforce.com earnings in
focus
(http://www.marketwatch.com/story/target-dollar-tree-salesforcecom-earnings-in-focus-2015-02-25)
(http://www.marketwatch.com/story/target-dollar-tree-salesforcecom-earnings-in-focus-2015-02-25)Shares
of Southwest Airlines Co.(LUV) could draw attention, after the
company said it pulled 125 jets out of service Tuesday
(http://www.marketwatch.com/story/southwest-pulls-more-than-125-jets-out-of-service-over-missed-inspections-2015-02-25)
--roughly one-fifth of its fleet -- over missed inspections.
Consumer Reports
(http://www.marketwatch.com/story/the-just-in-the-press-adores-tesla-2015-02-24)
named Tesla Motors Inc'.s(TSLA) Model S the top pick in 2015 for
car buyers.
Also read: Apple shares may be ripe for a correction
(http://www.marketwatch.com/story/apple-ripe-for-a-correction-2015-02-24)
(http://www.marketwatch.com/story/apple-ripe-for-a-correction-2015-02-24)Other
markets: The view of a less-hawkish Federal Reserve helped push
gold prices
(http://www.marketwatch.com/story/gold-retakes-1200-on-tailwinds-from-yellen-and-china-data-2015-02-25)(GCH5)
past $1,200 an ounce. The dollar
(http://www.marketwatch.com/story/dollar-pulls-back-versus-yen-after-yellen-testimony-2015-02-25)(DXY)
moved lower across major crosses, while WTI oil prices
(http://www.marketwatch.com/story/oil-futures-keep-a-wary-eye-out-for-us-inventory-data-2015-02-25)(CLJ5)
were drifting lower ahead of U.S. inventory data due later.
European stocks also pulled back, taking a breather from their
own record run on Tuesday. The Stoxx Europe 600 saw its highest
close since October 2007. Hong Kong shares got a small lift
(http://www.marketwatch.com/storyno-meta-for-guid) after an initial
reading of China's manufacturing activity surprised to the
upside.
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