Futures Little Changed on Tepid Durable Goods Orders
NEW YORK (TheStreet) -- Stock futures were little changed Friday as investors digested tepid durable goods orders against better-than-expected profits at shipping leader United Parcel Service (UPS) while awaiting consumer sentiment data.
Futures for the S&P 500 were down 1 point, or 1.13 points above fair value, to 1,747.5, with the benchmark index sitting near record highs on expectations of prolonged Federal Reserve support and amid a mixed earnings season that is still finding some top-line results wanting. Futures for the Dow Jones Industrial Average were falling by 7 points, or 4.79 points above fair value, to 15,447. Futures for the Nasdaq were up 7.3 points, or 24.08 points above fair value, to 3,378.3.
"It is now 518 days, and counting, but it still doesn't feel like a 10% correction is in the cards," Jeffrey Saut, a Florida-based chief investment strategist at Raymond James, said in a note. "Indeed, the stock market's best shot at such a correction was in the mid-July through mid-August timeframe, but the Putin Syrian Solution arrested the decline at about 5%. Still, I will say that my timing models are suggesting another window of vulnerability coming in the mid-November into the early December timeframe."
Procter & Gamble (PG) shares were down 0.45% to $80.25 after the consumer staples giant posted in-line fiscal first quarter earnings of $1.05 a share on revenue that narrowly topped expectations, and reiterated its fiscal 2014 guidance. CEO A.G. Lafley said that the company has "good market share momentum, a number of strong innovations coming to market over the balance of the year, and cost savings from productivity efforts that will continue to build."
Newell Rubbermaid (NWL) was gaining 3.73% to $30 after the consumer goods company reported third-quarter earnings that surpassed estimates by three cents at 52 cents a share as sales came in just below expectations. The company said that it carried out disciplined cost management measures and experienced continued momentum in Latin America. The company also announced a $350 million accelerated share repurchase plan.UPS posted a 9.4% earnings increase in the third quarter and narrowly beat estimates as international profits fell. The overnight package company said it earned $1.16 a share. Analysts surveyed by Thomson Reuters had estimated $1.15. Third-quarter revenue rose 3.4% to $13.5 billion. Analysts had estimated $13.6 billion. Shares were up 2.01% to $96.39. Amazon (AMZN) reported third-quarter results on Thursday that beat Wall Street estimates.The world's largest online retailer posted a quarterly loss of 9 cents a share on revenue of $17.09 billion, delivering 24% year-over-year growth. Analysts expected Amazon to lose 9 cents a share on revenue of $16.76 billion. Shares were surging nearly 8% to $358.34 in premarket trading. Microsoft (MSFT)said Thursday that fiscal first-quarter earnings rose to $5.24 billion, or 62 cents a share, from $4.47 billion, or 53 cents a share, a year earlier as revenue rose 16% to $18.53 billion. The results topped the estimates of Wall Street, which was looking for earnings of 54 cents a share on revenue of $17.79 billion. Shares were gaining more than 6% to $35.82. In other company developments, DuPont (DD) was adding on 2.39% to $62.53 after the chemicals company said that it will spin off its Performance Chemicals segment into a separate, publicly traded company, and that the move will be completed in about 18 months. The unit, which includes the Titanium Technologies and Chemicals & Fluoroproducts businesses, is being spun-off given the impact of its volatility on the company's share price and bottom line. Durable good orders rose by 3.7% in September versus an upwardly revised 0.2% in August on strength in aircraft orders. The Census Bureau was expected to report an increase of 2%. Still, most sectors exhibited a softening of orders in the face of the uncertain political and fiscal environment. At 9:55 a.m., the Reuters/University of Michigan's consumer sentiment index for October is expected to show a decrease to 75 versus 75.2 in the preliminary October reading. Markets traded higher Thursday amid strong earnings from bellwethers 3M MMM and Ford F combined with improved manufacturing data from China, the world's second largest economy. The benchmark 10-year Treasury was rising 3/32, diluting the yield to 2.516%. The dollar was up 0.04% to $79.22 according to the U.S. dollar index. The FTSE in London was up 0.11% and the DAX in Germany was unchanged. The Nikkei 225 in Japan settled down by 2.75%, while the Hong Kong Hang Seng fell 0.6%. December crude oil futures were rising 34 cents to $97.45 a barrel and December gold contracts were dipping $7.80 to $1,342.50 an ounce. -- Written by Andrea Tse in New York >To contact the writer of this article, click here: Andrea Tse.>
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