Stock Futures Dip as Macy's Misses
NEW YORK (TheStreet) -- U.S. stock futures were dipping Wednesday as investors awaited more information from the Federal Reserve on its timeline for tapering its massive stimulus bond-buying program amid continued mixed economic data, and retail bellwether Macy's (M) dampened optimism with results indicating soft consumer confidence.
Data indicating that the euro-area economy was improving as a whole were unable to lift the market out of the lull.
Futures for the S&P 500 were off 3 points, or 3.16 points below fair value, to 1,687.75. Futures for the Dow Jones Industrial Average were shedding 25 points, or 26.01 points below fair value, to 15,386. Futures for the Nasdaq were off 1 point, or 3.56 points below fair value, to 3,136.
U.S. stocks gained Tuesday as a Federal Reserve official downplayed the possibility the central bank will curb asset purchases in September and billionaire investor Carl Icahn tweeted that he's taken a large position in Apple (AAPL).Inflation numbers looked subdued in July, according to the Bureau of Labor Statistics. The producer price index (PPI) for last month came in flat vs. the expected rise of 0.3%. That's down from 0.8% in June. The core PPI stripping out food and energy costs came in up 0.1%, below the predicted 0.2% increase and the advance of 0.2% in the prior month. Meanwhile the Mortgage Bankers Association's purchase applications index continued to point to weakness in home sales in the week of Aug. 10, adding to the three-month decline in the purchase applications index that has occurred amid rising rates. The report showed a of drop of 5% for last week. St. Louis Fed Bank President James Bullard is expected to give remarks first at 1:20 p.m. Wednesday, then at 3:15 p.m. Macy's (M) was stumbling 3.48% to $46.81 in premarket trading after the department store chain slashed its full-year earnings guidance and posted second-quarter earnings of 72 cents a share on revenue of $6.07 billion, which missed the average analyst earnings estimate of 78 cents per share on sales of $6.26 billion, driven by consumers' continued worries about spending on discretionary items given the uncertainty of the economic environment. U.S. Airways (LCC), Delta Air Lines (DAL), United Continental (UAL) and AMR ( AAMRQ ) were also weighing on the market, slipping after analysts at JPMorgan slashed their views on these airline stocks to "neutral" on worries that the outlook for the airline industry is being threatened by the government's move to prevent the merger of AMR and U.S. Airways. Heavy equipment maker Deere (DE) was tacking on 0.7% to $84.50 after booking quarterly earnings of $2.56 a share vs. that average analyst estimate of $2.17 as revenues also exceeded expectations thanks to robust farm equipment sales results. Cisco (CSCO) is expected to report earnings of 51 cents a share after the market close, according to a Thomson Reuters survey of analysts. The benchmark 10-year Treasury was rising 3/32, diluting the yield to 2.715%. The dollar was up 0.04% to $81.80 according to the U.S. dollar index. The FTSE 100 in London was down 0.1%, while the DAX in Germany was rising 0.1%, hardly budging despite numbers indicating that the euro area's economy climbed out a prolonged recession in the second quarter spearheaded by improvements in Germany and France. The Hong Kong Hang Seng finished ahead by 1.21% and the Nikkei 225 in Japan closed up by 1.32%. December gold futures were gaining $3.70 to $1,324.20 an ounce and September light sweet crude oil futures were losing 52 cents to $106.31 a barrel. Follow @atwtse -- Written by Andrea Tse in New York >To contact the writer of this article, click here: Andrea Tse.>
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV