By Sara Sjolin, MarketWatch
J.P. Morgan climbs after earnings beat views
LONDON (MarketWatch) -- U.S. stocks were poised for another day
in red on Tuesday, with futures erasing earlier gains as
uncertainty over the earnings season dampened investor
appetite.
However, J.P. Morgan's results -- the first major earnings
report of the day -- beat forecasts and sent the bank's shares
higher in premarket trading.
Futures for the Dow Jones Industrial Average (YMM5) dropped 14
points, or 0.1%, to 17,896, while those for the S&P 500 index
(ESM5) fell 2 points, or 0.1%, to 2,084.50. Futures for the Nasdaq
100 index (NQM5) lost 3.75 points, or 0.1%, to 4,399.50.
On Monday, the benchmarks settled lower in a thinly traded
session (http://www.marketwatch.com/storyno-meta-for-guid) as
concerns persisted that the first-quarter earnings season will be a
disappointing affair.
"Thanks to the strength of the dollar and lower energy prices,
analysts have been progressively downgrading their estimates of
profit growth. So far, U.S. equity markets have taken these
earnings downgrades in their stride," said Rebecca O'Keeffe, head
of investment at stockbroker Interactive Investor, in a note.
"However, if there is evidence that the picture is not improving
in Q2, the market may find it more difficult to sustain current
valuations, especially if rising employment levels raise the
prospect of a potential June rate hike from the Fed," she
added.
Earnings: Banking major J.P. Morgan Chase & Co. (JPM)
reported rises in first-quarter profit and revenue above analyst
forecast, lifting the shares 1.6% premarket.
Wells Fargo & Co.(WFC) is likely to post
(http://www.marketwatch.com/story/what-to-look-for-in-wells-fargo-earnings-2015-04-13)
first-quarter earnings of 98 cents a share when it reports ahead of
the bell.
The two companies kick off earnings season for large U.S. banks,
with Bank of America Corp. (BAC), Citigroup Inc. (C) and Goldman
Sachs Group Inc. (GS) reporting later in the week.
Also reporting before the market open Tuesday, drug maker
Johnson & Johnson(JNJ) is projected to post first-quarter
earnings of $1.53 a share.
Intel Corp.(INTC) is slated to report after the bell. The chip
maker is expected to post first-quarter earnings of 41 cents a
share.
CSX Corp.(CSX) is expected to report first-quarter earnings of
44 cents a share after the market closes. CSX shares started
falling in sympathy after-hours Monday, after Norfolk Southern
Corp.'s (NSC) warned on profit
(http://www.marketwatch.com/story/norfolk-southern-view-misses-estimates-2015-04-13)
due to lighter-than-expected coal shipments. Norfolk Southern
shares were down 6.1% ahead of the bell on Tuesday.
Other stocks to watch: Shares of Best Buy Co. (BBY) could be
active after the electronics retailer late Monday said its
chairman, Hatim Tyabji, will retire on June 9
(http://www.marketwatch.com/story/best-buy-chairman-hatim-tyabji-to-retire-2015-04-13)
after three years in the role.
Data: There is also plenty to look for on the data calendar
Tuesday. At 8:30 a.m. Eastern Time, retail sales for March are due
and expected to show a 1.1% rise
(http://www.marketwatch.com/story/march-retail-report-may-show-consumers-revving-up-spending-2015-04-13).
Also at 8:30 a.m. Eastern, the producer-price index for March
will be out. The NFIB small-business index for March is due at 9
a.m., followed by February business inventories at 10 a.m.
Minneapolis Fed President Narayana Kocherlakota will speak at an
open forum about the economy in Winona, Minn., at 8 p.m. Eastern.
Kocherlakota is not a voting member of the Federal Open Market
Committee this year.
Other markets: Asian markets closed mixed
(http://www.marketwatch.com/storyno-meta-for-guid), while European
stocks were lower
(http://www.marketwatch.com/storyno-meta-for-guid) almost across
the board as investors stayed concerned about Greece's bailout
program.
Oil prices (CLK5) kept moving higher
(http://www.marketwatch.com/storyno-meta-for-guid) on hopes U.S.
shale oil production has peaked and may start falling. Metals fell
(GCM5), while the dollar (DXY) was little changed.
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