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

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) was jumping 18.3% in early New York trading after Exelon (EXC) agreed to buy the utility company.
-- By Jane Searle in New York 

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!

Markets

DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

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