This Day On The Street
Continue to site right-arrow
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
TheStreet Open House

Market Hustle: Stock Futures Turn Lower on Big GDP Disappointment

Stocks in this article: DJI IXIC TWTR EBAY YELP GE TWX YELP GE ^DJI ^GSPC ^IXIC POM EXC

NEW YORK ( TheStreet) -- Stock futures turned lower Wednesday, as poor weather and a fall in business investment saw tepid economic growth in the first quarter. Disappointing results from Twitter (TWTR) and eBay  (EBAY) also weighed on indices.

  • Futures for the Dow Jones Industrial Average were falling 17.37 below fair value to 16,451.0 while futures for the S&P 500 were off 3.63 below fair value to 1,868.75. Futures for the Nasdaq were shedding 14.49 below fair value to 3,551.0
  • Economic growth for the first quarter was just 0.1% down from 2.6% in the prior period. Rising personal consumption expenditure was partly offset by a fall in exports, private inventory investment, residential fixed investment and government spending. Expectations were for a result of 1.2%.
  • The ADP private payroll report showed a 220,000 gain for April, beating expectations for 200,000 and up from 191,000 in March.
  • The Federal Reserve is expected to announce a further $10 billion cut to its asset purchases at 2 p.m. EDT, though traders have warned not to underestimate the "surprise" element in Fed announcements and their market impact.
  • Russia is in recession, according to the International Monetary Fund, which cut its 2014 economic growth forecast for the nation to 0.2% on Wednesday. Russia has been slapped with several sanctions from the U.S. and E.U. after its involvement in the Ukraine crisis.
  • In international markets, Germany's DAX was falling 0.07% while the FTSE was 0.23% higher. The Hang Seng closed 1.42% lower while the Nikkei gained 0.11%. The Bank of Japan on Wednesday refrained from further stimulus but cut its growth estimate to 1.1% for the fiscal year ending in March 2015. Eurozone inflation rose to 0.7% in April, recovering from a four-year low of 0.5% in March.
  • Stocks expected to see price action Wednesday include General Electric (GE) after French conglomerate Alstom accepted a takeover bid Tuesday for its power-generation and transmission business. The preliminary deal could see GE pay more than $12 billion in cash. Twitter shares were falling 11.78% in premarket trade Wednesday after the company said its first-quarter loss widened to 23 cents a share from 21 cents a share a year earlier. Twitter reported average monthly active users of 255 million at the end of March, falling short of the million monthly users forecast. eBay shares were more than 4% lower in premarket trade after it reported a first-quarter loss of $1.82 a share due to a tax charge late Tuesday. On Wednesday, MetLife (MET) is slated to post first-quarter earnings of $1.40 a share, while Yelp (YELP) is projected to report a loss of 6 cents a share.
  • Pepco (POM - Get Report) was jumping 18.3% in early New York trading after Exelon (EXC - Get Report) agreed to buy the utility company.
-- By Jane Searle in New York 

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link 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

Jim Cramer's protégé, 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
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, 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
Try it NOW
Try it NOW
Try it NOW
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!

Markets

DOW 17,191.37 -195.84 -1.13%
S&P 500 2,002.16 -27.39 -1.35%
NASDAQ 4,637.9940 -43.5030 -0.93%

Partners Compare Online Brokers

Free Reports

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