By Barbara Kollmeyer, MarketWatch
MADRID (MarketWatch) -- U.S. stock futures traded flat Tuesday
ahead of a batch of earnings -- J.P. Morgan Chase & Co. and
Citigroup Inc. included -- with investors wary after late-session
selling Monday pushed major indexes sharply lower.
Futures for the S&P 500 index (SPZ4) rose 4 points to
1,866.90, while those for the Dow industrials (DJZ4) were flat at
16,230. Futures for the Nasdaq 100 index (NDZ4) gained 3 points to
3,803. Stock futures erased some gains after downbeat German
sentiment data.
Extending last week's losses, volatile trading on Monday ended
with the S&P 500 (SPX) dropping 1.6% to 1,874.74. Like other
major benchmarks, the S&P 500 is now trading below its 200-day
moving average of 1,900. Vote here: Does this stock slump have
further to go?
James Hughes, chief market analyst for Alpari U.K., said he's
wary because he sees traders targeting old stories, such as
concerns over slow global growth and its effect on earnings. "When
traders look for excuses for why the market is falling, [it] is
always a worrying time and would point to me as an indication that
we could see much more negativity to come," he said in a note.
Earnings in focus: The tide could change with Tuesday's earnings
batch, the first busy day in the third-quarter reporting season.
Ahead of the bell, J.P. Morgan Chase & Co. (JPM) is expected to
report per-share earnings of $1.38 on revenue of $24 billion,
according to analysts surveyed by FactSet.
Citigroup (C) is expected to report per-share earnings of $1.12
on revenue of $19.16 billion.
Wells Fargo & Co.(WFC), Domino's Pizza Inc. (DPZ) and
Johnson & Johnson (JNJ) are among the other names
reporting.
Among other stocks in focus, Versar Inc. (VSR) was surging in
early premarket trading. Its PPS unit makes hazmat suits and mobile
decontamination shelters. Other stocks linked to concerns over the
Ebola virus continued a pattern of pushing higher. Lakeland
Industries Inc. (LAKE) and Alpha Pro Tech Ltd. (APT) were trending
higher. Ebola stock trading volumes should raise red flags
Other markets: European stocks fell after the German ZEW
sentiment survey turned negative. Burberry Group PLC shares dropped
after the luxury-goods maker posted a rise in sales, but cited
unfavorable foreign exchange headwinds and Chinese weakness. U.K.
inflation fell to a five-year low. The European Court of Justice
has begun holding a hearing on the European Central Bank's Outright
Monetary Transactions bond-buying program. In Asia, the Nikkei 225
index sank 2.4%, falling below the 15,000 level and skidding to
two-month lows.
Crude-oil prices(CLX4) drifted lower, and gold(GCZ4) inched up,
while the dollar ((USDJPY) pulled back from an overnight slip
against the Japanese yen.
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