By Anora Mahmudova and Sara Sjolin, MarketWatch
SolarCity slides premarket after earnings
NEW YORK (MarketWatch) -- A larger-than-expected fall in weekly
jobless claims briefly lifted spirits on Wall Street Thursday, but
a slide in oil prices, which hit energy-related shares, and more
uncertainty over a Greece bailout kept investors cautious.
Futures for the Dow Jones Industrial Average (DJH5) had been
flipping between small gains and losses, but, at last check, were
off 26 points to 17,967, while those for the S&P 500 index
(SPH5) were off 3.6 points to 2,091.60. Futures for the Nasdaq-100
index (NDH5) stayed in positive territory -- barely -- with a
four-point gain to 4,390.
Markets had closed slightly lower on Wednesday, as investors
wrestled with interpreting minutes from the Federal Reserve's
latest meeting, which suggested the first rate hike might come
later than expected. Wall Street had anticipated a midyear rate
hike. The report showed the central bank is worried about the low
rate of inflation and slow pickup in wages, emphasizing the
importance of those data points.
Setback for Greece: Media reports on Thursday said Germany has
rejected Greece's request for a six-month loan extension agreement,
noting that their application is "not a substantial proposal for a
solution." The Greek government had formally requested a six-month
extension to its loan agreement, sending stocks higher in Athens.
But those gains have been pared and the Stoxx Europe 600 index was
flat and the euro (EURUSD) fell against the dollar.
The full Eurogroup of eurozone finance ministers is scheduled to
meet again on Friday.
Data: The number of people who applied for new unemployment
benefits in the second week of February dropped back below the key
300,000 mark, offering fresh evidence that layoffs remain low and
the pace of hiring in the U.S. is still robust.
The Philadelphia Fed's manufacturing index for February is out
at 10 a.m. Eastern. Economists expect a slight rebound to 8 from
the sharp decline to 6.3 in January, compared with 24.3 in
December. The leading indicators readings is scheduled for 10 a.m.
Eastern as well.
Oil blues: Energy companies and oil-related funds were hit hard
in premarket trade, as crude-oil prices slid and hovered around $50
a barrel. The oil slump came after reports showed a whopping jump
in U.S. oil stockpiles, which underscored concerns of a supply
glut. Among oil-tracking indexes, the iPath Goldman Sachs Crude Oil
Total Return Index ETN (OIL) fell 3.4%, and the Velocity Shares 3X
Long Crude ETN (UWTI) slumped 8.8%.
ConocoPhillips dropped 1.4% ahead of the open, while Exxon Mobil
Corp. (XOM) shaved off 1.3%, and Halliburton Co. (HAL) lost
2.2%.
Earnings: It is a busy premarket lineup on the earnings front:
T-Mobile US Inc.(TMUS) said it swung to a profit in the fourth
quarter and reported a better-than-expected surge in revenue.
Shares were unchanged ahead of the bell.
Hormel Foods Corp.(HRL) beat Wall Street's earnings expectations
and raised its 2015 adjusted earnings guidance. Shares rose
0.9%.
Wal-Mart Stores Inc.(WMT) reported quarterly earnings that
missed Wall Street's expectations. Shares fell 1.1%.
Priceline Group Inc.(PCLN) shares popped 8.8% after profit and
sales beat expectations.
DirecTV(DTV) gained 0.6% in premarket trade Thursday, after the
satellite TV service beat fourth-quarter profit expectations amid
strong growth in average monthly revenue per subscriber (ARPU).
Movers and shakers:SolarCity Corp.(SCTY) slumped 6.3% after the
solar-energy firm late Wednesday said it swung to a fourth-quarter
loss of 4 cents a share, from a profit of 28 cents a share a year
ago.
Counterpart SunEdison Inc.(SUNE) fell 4%. The solar-energy
company late Wednesday reported a smaller-than-expected
fourth-quarter loss.
BJ's Restaurants Inc.(BJRI) surged 10% after reporting a sharp
rise in profit for the fourth quarter.
Other markets: In Asia, Japanese stocks rose to a 15-year
intraday high, while the rest of Asia closed mixed. Chinese markets
were closed for the Lunar New Year celebrations.
Gold rallied (GCJ5) after the Federal Open Market Committee
minutes dashed hopes of a midyear rate hike.
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