By Sara Sjolin, MarketWatch
Alcoa slides almost 5% premarket after weak earnings
U.S. stock futures struggled for direction on Tuesday, as
investors braced for a round of lackluster corporate results after
Alcoa Inc. kicked off earnings season with a slump in profit.
Futures for the Dow Jones Industrial Average rose 19 points, or
0.1% to 17,491, but swung between gains and losses.
Futures for the S&P 500 index added 3.50 point, or 0.2%, to
2,038, while those for the Nasdaq-100 index climbed 4.25 points, or
0.1%, to 4,455.75.
On Monday, all three benchmarks fell,
(http://www.marketwatch.com/story/stock-futures-rise-as-dollar-steadies-investors-wait-for-alcoa-2016-04-11)
erasing earlier gains in the afternoon. The declines came ahead of
the closely watched first-quarter earnings report from Alcoa(AA) ,
released after the market close.
The aluminum giant posted a 92% drop
(http://www.marketwatch.com/story/alcoa-hurt-by-weak-aluminum-prices-2016-04-11-174853616)
in profit and lowered its 2016 outlook for the aerospace market,
sending shares down 4.5% in Tuesday's premarket trade.
"U.S. earnings season is underway, and first indications are
that this could live up to its billing as one of the worst in
years," said Lee Wild, an editor at stockbroker Interactive
Investor, in a note.
"However, with the bar set so low, there could be some
surprises," he added.
What to watch: Earnings for the first quarter are forecast to
slide 8.3% year-over-year, which would mark a third quarterly
decline in a row, according to a report from S&P Global Market
Intelligence.
"Such a steep decline in growth hasn't been recorded since Q2
2009," the report said.
Only three of the 10 S&P sectors are projected to see a rise
in earnings, with the consumer discretionary, telecommunications
and health care sectors leading for the fourth quarter in a row,
S&P said.
Read:Here's why banks are the black sheep of this earnings
season
(http://www.marketwatch.com/story/heres-why-banks-are-the-black-sheep-of-this-earnings-season-2016-04-11)
The earnings season continues at full speed on Tuesday, with
wholesale distributor Fastenal Co. (FAST) and retailer Perry Ellis
International Inc. (PERY) reporting ahead of the open. After the
market closes on Tuesday, transportation company CSX Corp. (CSX) is
slated to post results.
Data and Fed speakers: At 6 a.m. Eastern Time, the NFIB
small-business index for March is due, followed by the import-price
index for the same month at 8:30 a.m. Eastern.
The federal budget for March comes out at 2 p.m. Eastern.
It's a busy lineup for Federal Reserve speakers. First up is
Philadelphia Fed President Patrick Harker, who will give a speech
on the economic outlook at Netrality Properties in Philadelphia at
9 a.m. Eastern. Harker is not a voting member of the policy-setting
committee this year.
San Francisco Fed President John Williams, also a non-voter,
will speak in San Francisco at 3 p.m. Eastern.
Finally, Richmond Fed President Jeffrey Lacker, a non-voter as
well, will speak about "economic leadership in an uncertain world"
at the University of North Carolina Wilmington at 4 p.m.
Eastern.
Movers and shakers: Shares of Marathon Oil Corp.(MRO) could be
active in Tuesday's trade. Late Monday, the oil production company
said it plans to sell $950 million worth of assets
(http://www.marketwatch.com/story/marathon-plans-950-million-asset-sale-2016-04-11),
and vowed to focus on lower-risk U.S. resources to protect its
balance sheet against the oil price slump.
Hertz Global Holdings Inc. (HTZ) shares may also be active after
the car rental company cut its 2016 outlook on U.S. car rental
revenue
(http://www.marketwatch.com/story/hertz-cuts-2016-outlook-on-us-car-rental-revenue-2016-04-11-84852736).
Other markets: Asia markets closed mostly higher
(http://www.marketwatch.com/story/nikkei-lifted-by-weaker-yen-as-shanghai-stocks-slip-2016-04-12),
with Japan's Nikkei 225 index getting a boost from a weaker yen
(http://www.marketwatch.com/story/dollar-rises-after-japans-finance-minister-fires-a-warning-shot-over-yen-2016-04-12).
The dollar traded lower against most other major currencies,
sending the ICE dollar index down 0.3%.
Stocks in Europe traded mostly lower. Both crude and Brent oil
rallied more than 1%
(http://www.marketwatch.com/story/oil-prices-dip-as-investors-cash-in-on-overnight-surge-2016-04-12),
while metals rose across the board.
(END) Dow Jones Newswires
April 12, 2016 05:50 ET (09:50 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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