Stock Futures Fall as Yahoo!, BofA Miss Forecasts
NEW YORK (TheStreet) -- Stock futures were pointing to a lower open on Wall Street Wednesday as technology stocks appeared poised to decline after reports from Yahoo! (YHOO) and Intel (INTC) disappointed investors and Bank of America (BAC) missed earnings expectations.
Investors are awaiting the release of the Federal Reserve's Beige Book, the bank's report on economic conditions in the country's 12 national districts.
Bank of America was slumping 2.9% to $11.92 in pre-market trading after the Charlotte, N.C-based banking giant reported bottom-line results that missed expectations, driven by lower mortgage banking income.
Yahoo!, the Internet giant, posted quarterly earnings that beat Wall Street expectations, but revenue was less-than-expected and guidance also came in short of estimates. Shares were slipping 1.85% to $23.35 in premarket trading.Intel, the world's largest semiconductor maker, edged past Wall Street's sales estimates for the first-quarter in results released Tuesday afternoon even as earnings fell below forecasts. For its fiscal second quarter, Intel expects revenue of $12.9 billion, plus or minus $500 million, broadly in line with Wall Street's forecast of $12.85 billion. Shares were off 0.52% to $21.80. Futures for the S&P 500 were falling 10.25 points, or 10.77 points below fair value, to 1,558.5. U.S. stocks rebounded Tuesday as Coca-Cola (KO) and Johnson & Johnson (JNJ) reported earnings that beat forecasts, helping calm investors in the wake of the Boston bomb attacks that left scores maimed and three people dead. Gold recovered from its steepest decline in three decades. Futures for the Dow Jones Industrial Average were off 84 points, or 86.78 points below fair value, to 14,601. Futures for the Nasdaq were down 19.75 points, or 23.46 points below fair value, to 2,808.25. Bank of New York Mellon (BK) was sinking 2.7% to $27 after reporting a pre-announced net loss and missing the consensus estimate for first-quarter operating earnings. American Express (AXP) is expected by Wall Street on Wednesday to report first-quarter profit of $1.12 a share on revenue of $8.03 billion after the markets close. EBay (EBAY), which reports Wednesday after the closing bell, is forecast to post quarterly profit of 62 cents a share on revenue of $3.76 billion. Mattel (MAT) was popping 3.2% to $44.35 after the toymaker declared a dividend of 36 cents a share and reported first-quarter net income that surged, thanks to an increase in sales of Monster High and American Girl products. At 2 p.m. EDT, the Fed's Beige Book of anecdotal evidence on economic conditions from each of the 12 Federal districts in April will be released. The report arrives roughly two weeks before the next monetary policy meeting where it's used during discussions. St. Louis Fed President James Bullard will give a speech to the Levy Institute in New York at 9:30 a.m. Boston Fed President Eric Rosengren will also speaking at the Levy Institute, at noon. European markets fell as some earnings disappointed. The FTSE 100 in the UK was falling 0.51% and the DAX in Germany was down 1.18%. The Hong Kong Hang Seng index settled off 0.47% and the Nikkei 225 in Japan rose 1.22%. May crude oil futures were falling 72 cents to $88 a barrel on the New York Mercantile Exchange, while June gold futures were down $3.70 to $1,383.70. The benchmark 10-year Treasury was rising 4/32, diluting the yield to 1.713%. The dollar was up 0.37% to $82.06 according to the U.S. dollar index. Written by Andrea Tse in New York >To contact the writer of this article, click here: Andrea Tse.
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