By Anora Mahmudova and Sara Sjolin, MarketWatch
GoPro rallies more than 10% after earnings
U.S. stock futures extended losses on Wednesday, after a report
showed that the economy grew at a slower pace than expected during
the first quarter. A Federal Reserve statement after the conclusion
of its two-day policy meeting today also looms.
The U.S. economy grew at a meager 0.2% annualized pace in the
first quarter, a period marked by severe weather, a major port
dispute and a soaring dollar that curbed American exports.
Futures for the Dow Jones Industrial Average (YMM5) slipped 93
points, or 0.5%, to 17,967, while those for the S&P 500 index
(ESM5) lost 10 points, or 0.5% to 2,101.60. Futures for the
Nasdaq-100 index (NQM5) dropped about 22 points, or 0.5%, to
4,494.25.
The benchmarks on Tuesday ended a choppy session slightly higher
(http://www.marketwatch.com/storyno-meta-for-guid), as investors
grappled with disappointing earnings, weaker-than-expected
consumer-confidence data and uncertainty over the Fed
statement.
The central bank kicked off its two-day meeting on Tuesday and
will conclude it later Wednesday, with an policy statement due at 2
p.m. Eastern Time. Investors hope for clues on when policy makers
will raise rates.
Expectations for a June rate-hike have been dampened after a
string of disappointing economic data. Read: Fed not ready to
concede it won't hike this summer
(http://www.marketwatch.com/story/fed-not-ready-to-concede-it-wont-hike-this-summer-2015-04-27)
Data: The Fed is keeping a close eye on economic indicators, and
will be able to assess the first estimate of first-quarter U.S.
gross domestic product which came in weaker than expected.
Economists polled by MarketWatch expected to see a slowdown in
growth to 1.1%, down from 2.2% in the fourth quarter. However, the
report showed the economy grew at a meager 0.2% annualized
pace.
"If [GDP is weaker, it will be blamed on weather] and it is
likely the Federal Reserve's tone will remain dovish, but they will
probably keep a rate hike on the table for some time this year,"
Nour Al-Hammoury, chief market strategist at ADS Securities, said
in a note.
A disappointing GDP number added more pressure on the dollar
(DXY), which slid further on Wednesday
(http://www.marketwatch.com/story/dollar-slides-to-almost-2-month-low-ahead-of-fed-2015-04-29).
Elsewhere, a reading on pending-homes sales is due at 10 a.m.
Eastern Time.
Earnings : Ahead of the opening bell, Time Warner(TWX) reported
first-quarter profit and sales that beat expectations. Shares rose
1.9%.
Shares of flooring company Lumber Liquidators(LL) tumbled after
it posted a loss of 29 cents a share in the first quarter and
announced that it was facing criminal charges
(http://www.marketwatch.com/story/lumber-liquidators-says-doj-is-seeking-criminal-charges-against-the-company-2015-04-29).
Hilton Worldwide Holdings Inc.(HLT) reported a 25% rise in
first-quarter earnings per share
(http://www.marketwatch.com/story/hilton-posts-22-rise-in-first-quarter-profit-2015-04-29)
to 15 cents, up from 12 cents a year ago. Shares rose 1.9%
MasterCard (MA) posted profit that topped estimates
(http://www.marketwatch.com/story/mastercard-profit-tops-estimates-2015-04-29-84853737).
Movers & shakers: Shares of Twitter Inc.(TWTR) lost 1.7%,
after slumping 18% on Tuesday following the early release of
quarterly results that showed revenue growth
(http://www.marketwatch.com/story/twitter-revenue-disappoints-shares-tumble-2015-04-28-16485335)
fell short of expectations. GoPro Inc.(GPRO) surged 12% ahead of
the bell. The maker of wearable video cameras said late Tuesday
that its first-quarter profit jumped 52%
(http://www.marketwatch.com/story/gopros-profit-up-sharply-on-rising-popularity-2015-04-28).
For more stock moves look here at Movers and Shakers
(http://www.marketwatch.com/story/time-warner-mastercard-fiat-chrysler-lumber-liquidators-earnings-in-focus-2015-04-28).
(http://www.marketwatch.com/story/gopros-profit-up-sharply-on-rising-popularity-2015-04-28)
Other markets: European stock markets seesawed between small
gains and losses (http://www.marketwatch.com/storyno-meta-for-guid)
as investors continued to monitor the progress in Greece's bailout
talks. Asia closed mostly lower
(http://www.marketwatch.com/storyno-meta-for-guid), with Hong Kong
shares down 0.2%. Metals and energy
(http://www.marketwatch.com/storyno-meta-for-guid) futures were
lower across the board.
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