By Barbara Kollmeyer, MarketWatch
FOMC meeting due later; Boeing to report
MADRID (MarketWatch) -- U.S. stock futures looked poised to claw
back some gains on Wednesday after the prior day's brutal selloff
in the technology sector, with Apple Inc. set to do the heavy
lifting after the iPhone maker's blowout earnings.
As well, investors will be waiting on the results of the Federal
Open Market Committee meeting and earnings from Boeing Co., plus
reaction to several other companies that reported late Tuesday.
Leading the way higher, futures for the Nasdaq-100 (NDH5) surged
44.75 points, or 1%, to 4,222.25. Those for the Dow Jones
Industrial Average (DJH5) rose 27 points, or 0.2%, to 17,405, while
futures for the S&P 500 index (SPH5) gained 8.7 points, or
0.4%, to 2,038.70.
But investors had a right to be wary, considering the carnage on
Wall Street Tuesday. U.S. stocks saw the biggest drop in three
weeks, hammered by disappointing earnings from economic bellwethers
such as Caterpillar Inc. (CAT), Microsoft Corp. (MSFT) and a sharp
fall in durable-goods orders. Among the losses, the S&P 500
index (SPX) fell 1.3%.
Apple and Fed: Apple was set to help turn sentiment around on
Wednesday, at least for techs, after reporting another record for
its flagship iPhone, with 74.5 million phones sold in the fiscal
first quarter. Profit rose 38% to a record high and shares jumped
5% in late trade.
Check out a live blog recap of Apple's conference call
Plus: Has Apple grown overly dependent on the iPhone?
The only economic event for Wednesday is the FOMC announcement,
due at 2 p.m. Eastern Time. The two-day meeting isn't expected to
produce any major changes to the Fed's statement, and Goldman Sachs
and others expect the first hike in short-term interest rates by
September. Ellen Zentner, economist at Morgan Stanley said Tuesday
that she doesn't don't expect a Fed hike until March 2016, partly
due to downward pressure on inflation coming in stronger than
expected.
A strong dollar, which has been cutting into corporate earnings,
and weak oil prices mean investors are hoping the Fed will delay
that hike and they will be looking for a signal from the
statement.
Doubts grow about midyear rate hike, but Fed won't express
any
Yahoo, Boeing in focus: Shares of Boeing (BA) could be active,
with earnings expected ahead of the opening bell.
Yahoo Inc. (YHOO) could follow up a 7.3% late-session jump with
more premarket gains after the Internet search engine said it would
spin off its Alibaba Group Holding Ltd. (BABA) stake into a
separate, publicly traded company.
U.S. Steel Corp. (X) could get a push higher in premarket after
the steel producer's earnings topped Wall Street estimates.
Abiomed Inc. (ABMD) surged 29% in late trade after the medical
device maker posted earnings that blew out Wall Street
estimates.
On the downside, Ethan Allen Interiors Inc. could follow up a
13% late-session drop after weaker-than-expected results in its
holiday quarter.
Overseas markets: Europe stocks were pushing higher, with upbeat
results form heavyweight retailer H&M Hennes & Mauritz AB
and a survey showing German consumer sentiment will reach a 13-year
high in February. The Nikkei 225 index rose to a fresh one-month
high as the yen weakened against the dollar and other
currencies.
Crude-oil prices (CLH5) fell another 80 cents to $45.43 a
barrel, as another investment bank downgraded its forecast for the
commodity. Barclays cut its forecasts for WTI crude to $42 a barrel
for 2015 from $66 and $57 a barrel for 2016. For Brent crude,
Barclays cut its forecast to $44 a barrel for 2015 from $72 and
forecast $60 for 2015.
Gold prices (GCG5) drifted lower ahead of the FOMC meeting.
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