The Market Story
U.S. Futures Weighed Down by Gloomy Earnings Reports
Mike Taylor
10/22/08 - 07:00 AM EDT
Premarket futures were suggesting a lower open for stocks in New York Wednesday, as corporate earnings again took center stage and concerns of a global slowdown increased.
Futures for the S&P 500 were down 19 points at 939 and were 15 points short of fair value. Nasdaq futures were 17 points lower at 1276 and were 12 below fair value.
On Tuesday, stocks sold off sharply into the close as traders took profits from Monday's rally and sorted through gloomy earnings statements from a wide variety of firms.
Following Tuesday's close, Apple (AAPL Quote) reported a 26% increase in third-quarter earnings. Strong iPhone sales contributed to the improvement, but the company worked to temper expectations for the fourth quarter on a slowing economy.
Internet portal Yahoo! (YHOO Quote) also announced third-quarter earnings, saying profit declined 64%. The company also said it would cut at least 1,500 jobs this year.
Ahead of the new day's trading, oil-services company Baker Hughes (BHI Quote)said its profit increased 10% year over year.
Investors will be shoveling through a fresh pile of earnings statements. Aircraft maker Boeing (BA Quote) and its rival, Northrop Grumman (NOC Quote) are both slated to report.
Traders also will hear from telecom company AT&T (T Quote), integrated oil firm ConocoPhillips (COP Quote) and regional bank Wachovia (WB Quote).
Fast-food provider McDonald's (MCD Quote) also will announce its third-quarter results.
On a day that is rather light on economic data, the Energy Information Administration is set to release its crude-oil inventory figures for the week ended Oct. 18.