Stocks Face Flat Open

A series of warnings puts traders on edge.
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Stocks were set to open little changed Tuesday as the previous session's rally ran up against a series of profit warnings in the final week of the third quarter.

Futures on the

S&P 500

were unchanged at 1335.70 and were 1 point above fair value. Nasdaq 100 futures were up 1.5 points at 1666.75, even with fair value.

On Monday, the market had an up-and-down session, but closed higher as chip shares, retailers and the housing sector drew in buyers. The

Dow Jones Industrial Average

climbed 67.71 points, or 0.59%, to 11,575.81, and the S&P 500 tacked on 11.59 points, or 0.88%, to 1326.37. The

Nasdaq Composite

surged 30.14 points, or 1.36%, to 2249.07.

However, traders are now dealing with a series of lowered estimates as the quarter draws to an end.

After the close,

Lowe's

(LOW) - Get Report

cautioned investors about its earnings again. The seller of home-improvement goods, citing weaker-than-expected sales and a cautious consumer outlook, said full-year earnings will probably be near the low end of its earlier guidance.

Joining Lowe's in taking its estimates down were

Advanced Medical Optics

(EYE) - Get Report

,

PMC-Sierra

(PMCS)

and

Avid Technology

(AVID) - Get Report

.

Next up was

Lennar

(LEN) - Get Report

, whose management cut their earnings guidance for the second time this month, saying "it is not clear that the homebuilding downturn has yet found a floor."

A number of indicators have lately shown that the robust housing market is dealing with a slowdown in what had been a torrid pace of buying and selling. On Monday, the National Association of Realtors said last month's existing-home sales fell 0.5% from July to 6.3 million annualized units. August's sales of previously owned houses dropped 12.6% year over year.

To view Farnoosh Torabi's video take on today's market, click here