This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Stock Futures Pare Gains After Caterpillar Earnings


NEW YORK ( TheStreet) -- Stock futures were paring gains Monday after heavy construction-equipment maker Caterpillar (CAT - Get Report) reduced its full-year outlook and warned of ongoing economic weakness, and other companies including mining giant Freeport McMoRan Copper & Gold (FCX - Get Report) 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 - Get Report) 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%.




--Written by Andrea Tse in New York.



>To contact the writer of this article, click here: Andrea Tse.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
CAT $87.51 -1.30%
FCX $20.14 -4.00%
HAS $72.39 -0.70%
AAPL $130.25 -1.70%
FB $79.35 -1.50%

Markets

DOW 18,028.69 -203.33 -1.12%
S&P 500 2,105.59 -20.47 -0.96%
NASDAQ 5,035.29 -54.0720 -1.06%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs