By Sara Sjolin, MarketWatch
Zynga slides premarket after earnings
LONDON (MarketWatch) -- U.S. stocks were poised for another
upbeat trading day on Friday, with stock futures mirroring gains in
Europe and Asia, with consumer sentiment and import-price data on
tap to give clues to the health of the U.S. economy.
Futures for the S&P 500 index (SPH5) added 3.60 points, or
0.2%, to 2,087.70, indicating that the benchmark could nudge a
record close. The index on Thursday closed just 0.1% shy of its
all-time closing high of 2,090.57 hit in late December, after a
solid session on Wall Street fueled by a cease-fire agreement
between Russia and Ukraine, a pickup in oil prices and merger
news.
Futures for the Dow Jones Industrial Average (DJH5) added 38
points, or 0.2%, to 17,970 on Friday, while those for the Nasdaq
100 index (NDH5) climbed 11.50 points, or 0.3%, to 4,356.25. The
Nasdaq ended at its highest level since 2000 on Thursday.
Data: After a data-heavy Thursday, Friday brings only the
import-price index, due at 8:30 a.m. Eastern Time, followed by
consumer sentiment at 9:55 a.m. Eastern.
Analysts at Société Générale said they expect import prices to
have dropped 3.7% in January, which would mark the largest decline
in six years. The slide in foreign petroleum costs, lower metals
prices and the impact of a stronger dollar all weaken import
prices, they said.
For consumer sentiment, economists polled by MarketWatch see a
slight improvement to 98.5 in February, from 98.1 in January.
Investors will also be looking for the weekly Baker Hughes (BHI)
rig-count data for any clues to whether oil production in the U.S.
is slowing down. Oil futures (CLH5) were up 1.5%.
"In view of the low prices up until recently, a further
noticeable decrease in the oil rig count can be expected, which
could further fuel the price rally," analysts at Commerzbank said
in a note.
The data that came out last Friday showed the number of rigs
drilling for oil in the U.S. fell for a ninth straight week to the
lowest level in roughly five years.
Getting set to retire, Dallas Fed President Richard Fisher will
give a speech reflecting on his Federal Reserve career at 1:30 p.m.
Eastern Time.
Earnings: Reporting ahead of the bell, food company J.M. Smucker
Co.(SJM) said sales slipped in the fiscal third quarter, dented by
weak volumes in the company's U.S. retail coffee segment. There
were no premarket moves in the stock.
Interpublic Group of Cos.(IPG) reported fourth-quarter revenue
ahead of expectations and lifted its quarterly dividend. Shares
were unchanged premarket.
Movers and shakers:Zynga Inc.(ZNGA) slumped 13% premarket after
the games-maker said late Thursday its fourth-quarter loss widened
to $45.1 million, or 5 cents a share, from a loss of $25.2 million,
or 3 cents a share, in the year-earlier period.
Groupon Inc.(GRPN) rose 0.5% ahead of the bell even after the
online deal company on Thursday issued a weak outlook.
American International Group Inc.(AIG) slipped 2.3% premarket
after its fourth-quarter earnings fell short of estimates.
CBS Corp.(CBS) moved 3.9% higher before the bell after it said
late Thursday its fourth-quarter profit fell compared with the same
period a year ago, but revenue rose.
CyberArk Software Ltd.(CYBR) rallied 18% in premarket action
after a solid fourth-quarter report released late Thursday.
Other markets: European stock markets posted solid gains after
better-than-expected fourth-quarter economic-growth numbers, and as
Greece and its creditors showed signs of warming up to each other
in the deadlock over debt payments.
Asian markets closed mostly higher, with the Hong Kong market
posting its biggest gain in three weeks.
Metals (GCG5) were on the rise, while the dollar (DXY) rose
against other major currencies.
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