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Market Preview: A Rally on Stilts?

Stocks in this article: DIS PCLN OWW SPY ^GSPC ^DJI

Other companies reporting before the bell include Alpha Natural Resources (ANR), Computer Sciences Corp. (CSC), Consolidated Graphics (CGX), Dean Foods (DF), EchoStar Communications (DISH), International Flavors & Fragrances (IFF), Macy's (M), Polo Ralph Lauren (RL), Retalix (RTLX), Sodastream (SODA), Stillwater Mining (SWC), The Carlyle Group (CG), Tidewater (TDW), Toyota Motor (TM) and Treehouse Foods (THS).

The late roster features Allscripts Healthcare (MDRX), Amarin Corp. (AMRN), CenturyTel (CTL), Diodes (DIOD), Education Management (EDMC), Heelys (HLYS), Jack in the Box (JACK), Kinross Gold (KGC), Monster Beverage (MNST), News Corp. (NWS), Rosetta Stone (RST) and SatCon Technology (SATC).

Wednesday's economic calendar includes the Mortgage Bankers Association's weekly application activity index at 7 a.m. ET; productivity and unit labor costs data for the second quarter at 8:30 a.m. ET; and weekly crude inventories at 10:30 a.m. ET.

And finally, there were some forces aligning to knock stocks off their pedestal after Tuesday's close. On the big-picture front, Standard & Poor's went ahead and lowered its outlook on Greece to negative. Here's the money quote: ""We see the likelihood of shortfalls, owing to election-related delays in the implementation of budgetary consolidation measures for the current year, as well as the worsening trajectory of the Greek economy."

No big shocker but nevertheless could remind folks that Europe is still in teeter territory.

Then there's a batch of weak numbers after the bell. Shares of Priceline were down more than a C-note after the company said it expects non-GAAP earnings of $11.10 to $12.10 for the third quarter ending in September, well below the current Wall Street consensus estimate for a profit of $12.76 a share. The company said its outlook "reflects an assumption that economic conditions in Europe will further deteriorate."

Walt Disney (DIS), meanwhile, was lined up to provide a headwind for the Dow as shares of the media and entertainment conglomerate were lower in late trades despite a better than expected earnings performance as it fell a bit short on the top line.

The company reported earnings of $1.83 billion, or $1.01 a share, in its fiscal third quarter ended in July on revenue of $11.09 billion vs. average estimate of analysts polled by Thomson Reuters for a profit of 93 cents a share on revenue of $11.31 billion.

While CEO Robert Iger lauded the results as "phenomenal" and noted it was "the largest quarterly earnings in the history of our company," investors took the stock, which is up more than 30% so far in 2012, down a peg. Shares were last quoted at $49.29, off 1%, on late volume of more than 540,000, according to

-- Written by Michael Baron in New York.

>To contact the writer of this article, click here: Michael Baron.

Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.
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