Stock Futures Pare Gains After Caterpillar Earnings
NEW YORK (TheStreet) -- Stock futures were paring gains Monday after heavy construction-equipment maker Caterpillar (CAT) reduced its full-year outlook and warned of ongoing economic weakness, and other companies including mining giant Freeport McMoRan Copper & Gold (FCX) posted mixed earnings.
Futures for the Dow Jones Industrial Average were up 18 points, or 10.51 points below fair value, at 13,270. Futures for the S&P 500 were up 2.20 points, or 1.93 points below fair value, at 1426. Futures for the Nasdaq were up 9.25 points, or 1.33 points above fair value, at 2673.
Caterpillar cut its full-year outlook to sales of about $66 billion and profit in a range of $9 to $9.25 a share, from the prior outlook for sales in the range of $68 billion to $70 billion and profit of about $9.60 a share. Doug Oberhelman, Caterpillar CEO, said in a statement that "we've seen continued economic weakening and uncertainty. It's definitely impacting our business with dealers intending to lower inventories and mining customers delaying some projects and reducing orders."
The company posted third-quarter earnings of $2.26 a share, excluding special items, topping the average analyst estimate of $2.23 a share.Revenue came in at $16.445 billion, below the average analyst estimate of $16.79 billion. Shares were declining by more than 1% in premarket trading. Toymaker Hasbro (HAS) reported third-quarter revenue of $1.35 billion, missing the consensus target of $1.38 billion amid weaker sales in its boys and preschool categories. Earnings came in at $1.24 a share, better than the average analyst estimate of $1.20. Freeport McMoRan Copper & Gold reported third-quarter earnings of 68 cents a share, missing the average analyst estimate of 73 cents a share. Revenue came in at $4.417 billion, topping the consensus estimate of $4.363 billion. Shares were trading sideways. Yahoo! (YHOO), the Internet company, is seen reporting third-quarter profit of 26 cents a share on revenue of $1.08 billion. Yahoo! is expected to issue its report after the close of trading Monday. Shares were up 0.57%. Texas Instruments (TXN), the chipmaker, is expected by analysts Monday to post quarterly profit of 45 cents a share, down from 60 cents a share a year earlier, on revenue of $3.34 billion. Share prices were not yet available at last check. The major U.S. stock averages plunged Friday with investors spooked by a batch of high-profile earnings misses and the re-emergence of eurozone jitters. Soft results from General Electric (GE) and McDonald's (MCD) Friday on the heels of shortfalls from tech bellwethers Google (GOOG) and Microsoft (MSFT) on Thursday stoked concerns about the potential for an even weaker performance in the fourth quarter. The FTSE 100 in London was down 0.05% and the DAX in Germany was down 0.22% Monday as investors weighed hopes of a bailout request from Spain against the recent spate of worrying corporate earnings releases. The Nikkei Average in Tokyo settled up 0.09% after worse-than-expected trade data sparked speculation about more monetary easing. Hong Kong's Hang Seng finished up 0.68%. No major U.S. economic releases were expected Monday. December crude oil futures were up 3 cents at $90.47 a barrel. December gold futures were rising 60 cents at $1,724.60 an ounce. The benchmark 10-year Treasury was falling 10/32, raising the yield to 1.807%. The dollar was down 0.06%, according to the dollar index. In other corporate news, BP (BP), the U.K. oil company, confirmed Monday it's in advanced talks about selling its stake in TNK-BP to Rosneft, Russia's state-controlled oil company, in a deal of about $30 billion. Shares were up 0.35%. Ancestry.com (ACOM), the genealogy Web site, has agreed to be acquired by an investor group led by European private-equity firm Permira for about $1.6 billion, or $32 a share, The Wall Street Journal reported, citing people familiar with the deal. Shares were popping more than 7.5%.
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