Futures Fall After Bank of America Loss

Stock futures were pointing to a lower open Tuesday after Bank of America reported a wider third-quarter loss.
Author:
Publish date:

NEW YORK (

TheStreet

) -- Stock futures pointed to a lower open Tuesday as investors absorbed China's surprise rate increase and a wider third-quarter net loss from

Bank of America

(BAC) - Get Report

.

Futures for the

Dow Jones Industrial Average

were down by 36 points, or 78 points below fair value, at 11,009. Futures for the

S&P 500

were down by 7 points, or 9 points below fair value, at 1172 and

Nasdaq

futures were lower by 21 points, or 28 points below fair value.

Investors had a lot on their plates Tuesday morning amid an influx of key earnings reports and news that China's central bank hiked lending rates by 25 basis points for the first time in three years. The unexpected move came in response to Chinese concerns about inflation.

Late Monday,

Apple

(AAPL) - Get Report

and

IBM

(IBM) - Get Report

beat analysts' top-line and bottom-line expectations. Ahead of Tuesday's opening bell, Apple shares were down by 5% at $302.22, and IBM's stock was off by 3.4% at $137.99.

Stocks got a lift Monday from

Citigroup's

(C) - Get Report

better-than-expected earnings.

On Tuesday morning,

Bank of America said its loss widened to $7.3 billion, or 77 cents a share, in the third quarter. Excluding a $10.4 billion goodwill impairment charge, the bank earned $3.1 billion, or 27 cents a share, surpassing estimates for 16 cents a share. Shares were down 2.8% to $12 in early trading.

Shares of

Goldman Sachs

(GS) - Get Report

ticked 0.06% higher to $153.79 in premarket trading after it shot past expectations for earnings of $2.32 a share with a quarterly profit of $2.98 a share. Goldman's investment banking business was a key driver as revenue in the division jumped 24% year over year, to $1.12 billion.

Meanwhile, Coca-Cola said net income rose 8% to $2.055 billion, or 88 cents a share on sales of $8.426 billion. Volume increased by 5%, helped by international markets. Analysts had been looking for earnings of 89 cents a share on sales of $8.3 billion. The stock was up by 0.4% to $60.25 in early trading.

Housing starts unexpectedly rose to 610,000 in September from 608,000, previously, while September building permits slumped to 539,000 from 571,000. According to Briefing.com, economists had expected housing starts to decline to 579,000 from 598,000, while building permits were slated to dip to 565,000 from 569,000.

Late Tuesday, the American Petroleum Institute will issue its weekly read on crude oil inventories. According to analysts polled by Platts, crude supplies are projected to increase by 2.1 million barrels in the week ended Oct. 15.

Boston Scientific

(BSX) - Get Report

and

Yahoo!

(YHOO)

will report earnings after the closing bell. According to Briefing.com, analysts are expecting profits of 6 cents a share and 15 cents a share, respectively.

UnitedHealth

(UNH) - Get Report

reported a 23% boost to third-quarter earnings, pulling in $1.14 a share on sales of $23.67 billion. Analysts had been looking for earnings of 84 cents a share on sales of $23.31 billion.

Bank of New York Mellon

(BK) - Get Report

missed estimates for a third-quarter profit of 54 cents a share with earnings from continuing operations of 51 cents a share.

In commodity markets, November crude oil lost 30 cents, to trade at $83.50 a barrel, while the December gold contract shed $2.10 to $1,370 an ounce.

Meanwhile, the dollar was trading higher against a basket of currencies, with the dollar index up by 0.5%, and the benchmark 10-year Treasury note fell 1/32, increasing the yield to 2.516%.

Overseas, Hong Kong's Hang Seng gained 1.3% and Japan's Nikkei added 0.4%. The FTSE in London inched 0.09% higher while the DAX in Frankfurt was ahead by 0.2%.

--Written by Melinda Peer in New York

.

Disclosure: TheStreet's editorial policy prohibits staff editors and reporters from holding positions in any individual stocks.