Futures Hesitate as China Lifts Rates
NEW YORK (TheStreet) -- U.S. stock futures pointed to a largely flat open Tuesday, pulling back from the previous session's gains, as investors absorbed China's second interest rate hike in just over a month.
Futures for the Dow Jones Industrial Average were up by 8 points, or 2 points above fair value, at 12,116. Futures for the S&P 500 were higher by two-tenths of a point, or nearly two-tenths of a point above fair value, at 1316, and Nasdaq futures were ahead by 1 point, or 2 points below fair value.
Stocks held strong gains throughout Monday's session amid a spate of deals.The People's Bank of China raised interest rates for the second time in slightly more than a month as part of its ongoing attempt to combat inflation. Japan's Nikkei added 0.4% while the Hong Kong Stock Exchange fell 0.3%. London's FTSE was losing 0.2% while the DAX in Frankfurt was up by 0.1%. With no economic releases scheduled for Tuesday's session, the market is likely to focus on earnings news. Shares of Beazer Homes (BZH) were down 4.6% to $5.20 ahead of Tuesday's opening bell after the homebuilder reported a first-quarter loss of $48.8 million , or 66 cents a share, and said revenue plunged 48% to $110.3 million. Analysts had been expecting a loss of 50 cents a share on sales of $163.7 million. Swiss bank UBS (UBS) posted its first annual profit since 2006 and said fourth-quarter earnings rose to 1.29 billion Swiss francs ($1.35 billion), from 1.2 billion Swiss francs a year ago. Analysts, however, had been expecting earnings of 1.45 billion Swiss francs. The stock was up by 2% at $18.76 in early trading. Shares of Toyota (TM) were up by 0.4% at $85.50 despite reporting a 39% decrease in third-quarter profit as the automaker lifted its year-end profit and sales guidance. Kindred Healthcare (KND) saw its stock jump 5.2% higher to $20.49 during the premarket trading session on news that it will acquire RehabCare (RHB) for roughly $900 million.
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