By Barbara Kollmeyer, MarketWatch
MADRID (MarketWatch) -- Stock futures were volatile Wednesday,
fresh off of registering the worst day for major stock averages in
months. Investors appear to be pinning some hope for a reprieve in
today's trading session on positive signs out of the Federal Open
Market Committee minutes and indications of a healthy business
sector from the unofficial kickoff for earnings season.
Futures for the Dow Jones Industrial Average (DJZ4) rose 13
points to 16,664, while those for the S&P 500 index (SPZ4)
added 3.1 points to 1,930.90. Futures for the Nasdaq-100
(NDZ4)(NDZ4) inched up 3.75 points to 3,960.
(NDZ4)(NDZ4)As part of Tuesday's carnage, the S&P 500 (SPX)
dropped 1.5% to close at 1,935.1, and the Dow industrials (DJI) had
the worst day of selling in more than two months. Some investors
are concerned about the divergence between the performance of large
cap and small cap companies: the Russell 2000 (RUT) small caps are
down 7.5% year-to-date; but the S&P 500 (representing some of
the biggest companies) is still up nearly 5%. Need to Know: The
worry of small-cap stocks
Watch 200 DMA, watch Fed: The current weak spot for markets
could continue Wednesday, said Wouter Sturkenboom, a London-based
investment strategist at Russell Investment, in emailed comments.
However, he added that much will depend on the outcome of the FOMC
minutes, due at 2 p.m. Eastern Time. Split between hawks, doves to
be evident in Fed minutes
That is the only item on the data calendar. Sturkenboom said
investors will look to the start of earnings season to gauge
whether it will provide an up or down direction. Alcoa (AA), the
unofficial kickoff to the season, will report after the close on
Wednesday. What to expect from Alcoa's earnings
Sturkenboom said to keep an eye on the 200-day moving average
for the S&P 500 at 1,903, which could be a "possible inflection
point". He added, "If we find some solid ground we will buy the
dip," but said the small-cap retreat "looks set to keep going a bit
longer." Market's October backdrop remains bearish
Stocks to watch:Yum Brands Inc.(YUM) fell in late trading but
was up 0.8% in premarket. The company's profit and outlook missed
estimates, and it slashed expectations for full-year growth in
earnings per share to between 6% and 10%, from a prior estimate of
at least 20%.
Kraft Foods Group Inc. (KRFT) could rise after the food company
said Tuesday it's raising its quarterly dividend to 55 cents a
share, from 52.5 cents.
Ahead of the open: Costco Wholesale Corp. (COST) surprised with
a 13% rise in profit on growth in same-store sales and higher sales
from membership fees. Shares rose 1.4%.
Symantec Corp.(SYMC) could be looking at a split, Bloomberg News
reported, citing persons with knowledge of the plans. Shares rose
nearly 4% in premarket.
Other markets: European stocks trended lower, with the German
DAX 30 dropping below the key 9,000 level. Travel stocks were hit
particularly hard in Europe on fears the spread of Ebola will
hamper tourism. Stocks in Russia and other emerging markets were
also hit hard as Tuesday's growth warning by the International
Monetary Fund about the health of the global economy continued to
have ripple effects. The case for not panicking over the global
slowdown
The global rout was felt in Asia, where the Nikkei 225 index
lost 1.2%.
Oil prices(CLX4) pushed another leg lower, trading around the
$87-dollar-a-barrel level. On Tuesday in New York it finished at
its lowest level for two years, also weighed by that IMF growth
call. Gold(GCZ4) rose as stocks continued to struggle.
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