By Barbara Kollmeyer, MarketWatch
MADRID (MarketWatch) -- U.S. stock futures pointed to a modestly
lower open on Wednesday, as rising fears about a too-soon
interest-rate hike from the Federal Reserve are expected to keep
investors on the back foot.
Apple Inc. could see pressure after one analyst downgraded
shares. The company unveiled a new iPhone and its first Watch on
Tuesday. Microsoft Corp. and Krispy Kreme Doughnuts Inc. are among
other names investors will be watching.
Futures for the Dow Jones Industrial Average (DJU4) fell 17
points to 17,017, while those for the S&P 500 index (SPU4) lost
2.2 points to 1,987.50. Futures for the Nasdaq-100 index (NDU4)
eased 4.25 points to 4,062.
A thin economic calendar will keep the spotlight on recent
consolidation for Wall Street. Just a report on wholesale
inventories for July is expected, at 10 a.m. Eastern.
The S&P 500 (SPX) fell 0.7% to 1,988.44 on Tuesday, its
fourth loss in the last five trading days.
Fed triggers jitters: Craig Erlam, market analyst at Alpari,
said a lack of fresh economic data is weighing on stocks globally,
but rising bond yields, particularly in the U.S., may be the bigger
culprit.
"Rising yields may reflect a slight repricing of the first rate
hike, with some believing that markets had priced in a later hike
than the Fed is suggesting," he said in a note. But he said there
isn't any recent evidence to suggest the Fed has indeed brought
rate-hike expectations forward.
Investors will look to next week's Federal Open Market Committee
meeting for fresh guidance on rates.
U.S. weakness fed through to Europe markets and Asia, with the
exception of a small rise for the Nikkei 225 index .
Stocks to watch: Analysts at Pacific Crest cut Apple (AAPL) to
sector perform, citing a lack of new "profit drivers" to maintain
an outperform rating after the iPhone maker unveiled the latest
version of its popular phone and a new Apple Watch wearable device
on Tuesday.
Shares of Microsoft (MSFT) could grab attention on a report in
The Wall Street Journal that the technology group is set to pay
around $2 billion deal to buy the maker of the popular "Minecraft"
videogame.
Krispy Kreme Doughnuts (KKD) skidded more than 6% in after-hours
trading Tuesday after the doughnut chain posted stronger sales, but
adjusted profit missed forecasts.
Other markets: As investors backed away from stocks, gold
prices(GCZ4) rose and the dollar continued to climb, hitting
another nearly six-year high against the yen (USDJPY).
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