By Sara Sjolin, MarketWatch
Goldman Sachs rises after
U.S. stock-index futures were moving sharply lower on Thursday,
with investors shaking off a stream of better-than-expected
earnings, as investors remained cautious ahead of comments from key
Federal Reserve members and manufacturing data.
Stock futures continued to trade in the red after reports for
jobless claims and housing starts proved less than stellar.
Futures for the Dow Jones Industrial Average (YMM5) dropped 47
points, or 0.3%, to 17,973, while those for the S&P 500 index
(ESM5) lost 6 points, or 0.3% to 2,094.2. Futures for the
Nasdaq-100 index (NQM5) fell 14 points, or 0.3%, to 4,407.
The losses marked a pullback from Wednesday's advances
(http://www.marketwatch.com/storyno-meta-for-guid), when
better-than-expected earnings and a jump in oil prices sent the
benchmarks close to record closing levels. The S&P 500 ended
just 0.5% shy of its all-time close of 2117.39 hit Monday, March 2,
while the Dow average (DJI) missed its record by 1%.
Construction on new homes rose to annual rate of 926,000 in
March, but analysts polled by MarketWatch had expected a 1.04
million
(http://www.marketwatch.com/story/housing-starts-thaw-in-march-after-february-freeze-2015-04-16),
while a report of people seeking new U.S. unemployment benefits in
the second week of April. Initial jobless claims rose to 294,000
(http://www.marketwatch.com/story/jobless-claims-hit-highest-level-in-six-weeks-2015-04-16)in
the week ended April 11, from a revised 282,000 from the week
prior.
Earnings: Corporate results out on Thursday were also largely
upbeat. Goldman Sachs Group Inc.(GS) reported profit and revenue
ahead of forecasts, helping lift shares 0.9% premarket. On
Wednesday, Goldman shares closed above $200 for the first time
since 2008, just before the collapse of Bear Stearns.
Citigroup Inc.(C) posted first-quarter results that beat
analysts expectations for profits but missed on revenues.
Also Reporting ahead of the bell, UnitedHealth Group Inc.(UNH)
raised its outlook for 2015 earnings to $6.15 to $6.30 per share.
Its prior outlook was for $6.00 to $6.25 per share. The heath-care
company's shares rose 2.8% premarket after it released
first-quarter results.
Shares of Philip Morris International Inc.(PM) picked up 4.6%
ahead of the market open after the cigarette maker reported a dip
in first-quarter profit, but raised its earnings guidance
(http://www.marketwatch.com/story/philip-morris-raises-guidance-shipment-volume-up-2015-04-16)
for the full year.
BlackRock Inc.(BLK) reported adjusted first-quarter earnings of
$4.89 a share, beating FactSet estimates.
And after the market closes, American Express Co.(AXP) is
expected to post first-quarter earnings of $1.36 a share, while
Barbie-maker Mattel Inc.(MAT) is expected to post a loss of 9 cents
a share in the first quarter.
Stocks to watch: Netflix Inc. shares(NFLX) jumped 12% ahead of
the open after the online streaming company late Wednesday said it
added 4.88 million subscribers in the first quarter
(http://www.marketwatch.com/story/netflix-adds-more-users-than-expected-shares-leap-2015-04-15),
better than the 4.05 million additions it had forecast.
SanDisk Corp.(SNDK) dropped 7.9% premarket after the memory-chip
maker late Wednesday reported a drop in profit
(http://www.marketwatch.com/story/sandisk-shares-down-after-eps-miss-2015-04-15).
McDonald's Corp.(MCD) was also in the spotlight. The operator of
its chain in Japan said it expects to post deep losses
(http://www.marketwatch.com/story/mcdonalds-japan-expects-deep-losses-amid-food-scandals-2015-04-16)
in the current fiscal year and that it will close 131 of its
stores.
Fed speakers: Four Federal Reserve speakers are on tap within a
two-hour time frame on Thursday.
First up is Atlanta Fed President Dennis Lockhart, scheduled to
speak to business leaders in Palm Beach, Florida, at 1 p.m. Eastern
Time. Lockhart is a voting member of the policy-setting Federal
Open Market Committee this year.
Cleveland Fed President Loretta Mester, who isn't a voter, gives
a speech on the economic outlook in New York at 1:10 p.m.
Eastern.
At 1:30 p.m. Eastern, Boston Fed President Eric Rosengren, also
a non-voter, will speak in London.
And finally, Stanley Fischer, the Fed's Vice Chairman, is slated
to talk about inflation at the International Monetary Fund at 3
p.m. Eastern.
The hefty Fed lineup comes after comments on Wednesday from St.
Louis Fed President James Bullard
(http://www.marketwatch.com/story/feds-bullard-says-rate-hikes-are-needed-for-coming-boom-2015-04-15)
and Richmond Fed President Jeffrey Lacker
(http://www.marketwatch.com/story/feds-lacker-strong-case-can-be-made-for-higher-rates-2015-04-15),
when each made a case for raising interest rates soon.
Economic data: Weekly jobless claims are due at 8:30 a.m.
Eastern, and are expected to show 281,000 Americans filed for
jobless claims last week. That would be unchanged from the week
before.
At the same time, housing starts for March are due, followed by
the Philadelphia Fed's manufacturing index at 10 a.m. Eastern.
Economists polled by MarketWatch expect the manufacturing index to
rise to 6 in April from 5 in March.
Other markets: Asian bourses closed mostly higher
(http://www.marketwatch.com/storyno-meta-for-guid), while the major
European indexes were mired in the red
(http://www.marketwatch.com/storyno-meta-for-guid).
Crude oil (CLK5) pulled back
(http://www.marketwatch.com/storyno-meta-for-guid)after Wednesday's
6% rally. Metals rose, and the dollar
(http://www.marketwatch.com/storyno-meta-for-guid) moved lower.
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