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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Stock Futures Dip After Huge Japan Rally

NEW YORK (TheStreet) -- U.S. stock futures were slipping Wednesday on the heels of a strong rally in Japan as the the prospect of looser monetary policy there has failed to carried over into investor confidence in the United States.

The gap up Wednesday on the Nikkei came a day after Bank of Japan Gov. Masaaki Shirakawa told reporters in Tokyo that he would step down on March 19, likely paving the way for Prime Minister Shinzo Abe to implement a greater quantitative easing policy he has pushed for in recent months.

Futures for the Dow Jones Industrial Average were off 29 points, or 0.21%, at 13,881. Futures for the S&P 500 were falling 4 points, or 0.28%, to 1502. Nasdaq futures were shedding 12 points, or 0.42% with a fair value of 2738.

"Japan has been hot on the hopes of more quantitative easing and, again, today it's one of the biggest days of the year," said Ryan Detrick, senior technical strategist with Schaeffer's Investment Research. "Clearly people continue to buy the yen; the yen continues to drop massively, and that's creating a pretty good bid for the Nikkei and for their stocks."

Asian markets surged on Wednesday as the rally in Japan encouraged momentum in most of the major markets there. Japan's Nikkei average rose 3.8% overnight to close at 11464. Hong Kong's Hang Seng gained 0.47% to 23,257.

The FTSE 100 was losing 0.02% on Wednesday, despite earlier gains, as the residue from Japan's spike wore off. The DAX in Germany was sinking 1.41% after manufacturing orders there printed a little lighter than expected.

Manufacturing orders for Germany in December rose 0.8% against a 1.8% drop in November, but failed to beat economists' expectations of about 1%.

There is little major economic data expected to be released in the U.S. on Wednesday, except for crude inventories at 10:30 a.m. EST.

Gold futures for April delivery were ticking higher by $4.70 to $1,678.20 an ounce at the Comex division of the New York Mercantile Exchange, while futures for March crude oil contracts were lower by $1.44 cents to $95.20 a barrel.

The benchmark 10-year Treasury was adding 8/32, diluting the yield to 1.976%. The dollar was up 0.33%, according to the U.S. dollar index.

In corporate news, Walt Disney (DIS) announced fiscal first-quarter profit dipped slightly but beat expectations. The company earned 77 cents a share on revenue of $11.3 billion. Shares were rising 2.4% in premarket trading.

Royal Bank of Scotland (RBS) is expected to pay some 400 million pounds ($627 million) for a role it played in the LIBOR global interest-rate rigging scandal, Reuters reported, citing sources familiar with the situation. Shares gained 2.5% on Tuesday.

Time Warner (TWX) reported adjusted fourth-quarter earnings of $1.17 a share on revenue of $8.16 billion. Analysts expected the company that owns CNN and HBO to post fourth-quarter earnings of $1.10 a share on revenue of $8.25 billion. Shares were rising 3.1% in premarket trading.

CVS Caremark (BAC) on Wednesday posted fourth-quarter adjusted earnings of $1.14 a share; analysts were looking for $1.10 a share.

Zynga (ZNGA) beat Wall Street expectations on Tuesday as the company reported a profit of 1 cent a share on revenue of $311.1 million for the fourth quarter. Analysts expected a loss of about 2 to 4 cents a share on revenue of $255 to $265 million. Shares were popping 4% in the premarket session.

Chipotle Mexican Grill (CMG) said its fourth-quarter earnings rose 7% as same-store sales grew 3.8% due to better customer traffic. Shares of the company fell 0.99% premarket.

Media giant News Corp (NWSA) will report quarterly earnings on Wednesday as the Street expected a profit of 42 cents a share on revenue of $9.28 billion. Shares closed higher by 1.5% on Tuesday, and climbed 0.25% in after hours.

-- Written by Joe Deaux in New York.

>Contact by Email.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,982.59 +22.02 0.13%
S&P 500 1,978.91 +0.57 0.03%
NASDAQ 4,444.9090 -4.6550 -0.10%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs