By Anora Mahmudova and Sara Sjolin, MarketWatch
Exxon Mobil, New York Times earnings on tap
U.S. stock-index futures held earlier losses and pointed to a
negative day on Wall Street Thursday as investors assessed a trio
of economic reports and earnings.
Weekly jobless claims dropped by far more than expected, while
employment costs rose last quarter signalling tightening in the
labor market. Consumer spending rose modestly in March, while
inflation ticked up.
Investors were also watching the latest raft of corporate
earnings, including results from Exxon Mobil Corp. (XOM), New York
Times Co. (NYT) and Colgate-Palmolive Co. (CL).
Futures for the Dow Jones Industrial Average (YMM5) were off 22
points, or 0.1%, to 17,933, while those for the S&P 500 index
(ESM5) slipped 3 points, or 0.1%, to 2,096. Futures for the Nasdaq
100 index (NQM5) gave up 14 points, or 0.3%, to 4,465.
The losses add to declines from Wednesday, when the benchmarks
ended a volatile session lower
(http://www.marketwatch.com/storyno-meta-for-guid)after the Fed
left open the possibility of an interest-rate hike as early as June
(http://www.marketwatch.com/story/fed-expects-economy-to-recover-as-it-keeps-rate-options-open-2015-04-29).
The central bank said it wants to see further improvement in the
labor market and have confidence that low inflation is stabilizing
before they raise rates. Sluggish first-quarter growth also took a
toll on stocks.
Data: The number of people who applied for U.S. unemployment
benefits fell 34,000 to 262,000 in the seven days from April 19 to
April 25, the government said Thursday.
The cost of employing the average U.S. worker climbed 0.7% in
the first quarter, according to a closely watched gauge.
Consumer spending rose a seasonally adjusted 0.4% in March, the
Commerce Department said Thursday. But personal income was flat
last month, likely reflecting slower job creation. Inflation as
gauged by the PCE price index climbed 0.2% in March
Earnings: Reporting ahead of the bell, Exxon MobilCorp.(XOM)
posted better-than-expected profit and sales but the integrated oil
giant's results still show signs of the plunge in oil prices.
Another energy company, ConocoPhillips (COP), reported an
adjusted first-quarter loss of 18 cents, slightly bigger than what
was forecast.
New York Times Co.(NYT) reported first-quarter profit and sales
that missed Street consensus estimates, and announced that it
expects advertising revenue to fall in the second quarter.
Colgate-Palmolive Co.(CL) said first-quarter sales fell 6%,
slightly missing analyst expectations. The consumer-goods company
also said expects a double-digit decline in full-year earnings per
share. Shares slipped 1.1% ahead of the bell.
Time Warner Cable Inc.(TWC) reported disappointing profit and
revenue for the first quarter.
Viacom Inc.(VIA) reported adjusted second-quarter earnings above
expectations
(http://www.marketwatch.com/story/viacom-beats-profit-expectations-but-misses-on-sales-2015-04-30),
while revenue missed.
After the bell, American International Group
Inc.(AIG)LinkedInCorp.(LNKD) and Visa Inc. (V) are set to report.
Read about what's expected
(http://www.marketwatch.com/story/new-york-times-exxon-aig-linkedin-fireeye-earnings-in-focus-2015-04-30).
Movers and shakers: Shares of Yelp Inc.(YELP) plunged 18% after
the online review company late Wednesday reported first-quarter
earnings that missed analyst expectations
(http://www.marketwatch.com/story/yelp-reports-slower-growth-profit-and-sales-miss-2015-04-29).
RBC Capital Markets on Thursday cut the stock to sector perform
from outperform, citing the "very negative" quarterly result.
Glu Mobile Inc.(GLUU) leapt 23% premarket after Chinese Internet
company Tencent Holdings Ltd. said it would buy a 14.6% stake in
the mobile-game company for $126 million.
U.S.-listed shares of Alcatel-Lucent(ALU) slumped 5.5% after the
Financial Times reported a major shareholder in the French telecoms
company has criticized the terms of its buyout by Nokia
(http://www.marketwatch.com/story/key-alcatel-lucent-shareholder-calls-nokia-deal-unacceptable-2015-04-30).
U.S.-listed Nokia shares (NOK) lost 6.9%. The company also reported
first-quarter earnings
(http://www.marketwatch.com/story/nokia-profit-falls-but-beats-expectations-2015-04-30).
Other markets: Asian stock markets closed mostly lower
(http://www.marketwatch.com/storyno-meta-for-guid), while European
benchmarks (http://www.marketwatch.com/storyno-meta-for-guid)
struggled for direction.
Crude-oil prices (CLM5) moved 1% higher
(http://www.marketwatch.com/storyno-meta-for-guid) and most metals
declined. The dollar (DXY) traded mixed against other major
currencies (http://www.marketwatch.com/storyno-meta-for-guid).
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