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Stock futures waver with home sales, tech results ahead

MARKETWATCH 6:14 AM ET 04/23/14

Symbol Last Price Change
AAPL 531.699up 0 (0%)
FB 63.0301down 0 (0%)
BA 127.55down 0 (0%)
DAL 34.95up 0 (0%)
DOW 48.94up 0 (0%)
T 36.29up 0 (0%)
YUM 77.48up 0 (0%)
GILD 72.86up 0 (0%)
QUOTES AS OF 04:00:00 PM ET 04/22/2014

LONDON (MarketWatch) -- U.S. stock futures struggled for direction ahead of the open on Wednesday, with investors waiting for home-sales data and manufacturing numbers to guide the markets after a six-day winning streak. Heavyweight tech earnings from Apple(AAPL) and Facebook(FB) were also in the spotlight.

Futures for the Dow Jones Industrial Average (DJM4) inched 1 point lower to 16,457, while those for the S&P 500 index (SPM4) (SPM4) fell 1.1 points to 1,872.80. Futures for the Nasdaq 100 index (NDM4) slipped 4 points to 3,581.

The muted moves came after the S&P 500 (SPX) and Nasdaq (RIXF) closed higher for a sixth-straight session on Tuesday, as investors welcomed better-than-expected earnings results and a flurry of deal news in the pharma sector.

Earnings reports will return to being a main attraction on Wednesday, with Boeing Co.(BA) projected to report first- quarter earnings of $1.56 a share ahead of the open, according to a consensus survey by FactSet. Delta Air Lines Inc.(DAL) and Dow Chemical Co.(DOW) also release results premarket.

Economic data could set the trading tone. The government reports new-home sales for March at 10 a.m. Eastern Time, expected to show that the annualized sales pace of new single-family homes hit a seasonally adjusted 450,000 last month, compared with a rate of 440,000 in February.

If the March rate rises to 450,000, that would be up 2% from a year earlier, but down 57% from the average monthly pace of almost 1.1 million over the five years leading up to the 2005 bubble peak.

At 9 a.m. Eastern Time, Markit's preliminary reading on the manufacturing purchasing managers' index for April is out, providing an early insight into how strong the second quarter is looking.

"I fear that until the U.S. home sales and manufacturing data is out later this afternoon, the markets may fail to find any strong direction other than a little profit-taking," London-based trader Farhan Ahmad at TradeNext said in a note.

He noted that both the Dow and Germany's DAX 30 index look overbought, which gives scope "for the bears to steal some profits on shorting."

Most European benchmarks traded in negative territory, with investors eyeing developments in Ukraine. Tensions flared up again, with the U.S. planning to move troops near Russia and Kiev looking set on restarting military action against pro-Russia activists. Asian stocks closed mixed.

Ahead of the open in the U.S., AT&T Inc.(T) dropped 2.2% after the telecom late Tuesday reported a first-quarter profit of $3.65 billion, or 70 cents a share, compared with $3.7 billion, or 67 cents a share, a year ago.

Yum Brands Inc. (YUM) shares rose 2% premarket after the parent of KFC(YUM), Taco Bell and Pizza Hut late Tuesday reported that profit rose 18%, buoyed by a rebound in Chinese demand.

Gilead Sciences Inc. (GILD) picked up 3.6% in premarket action after the biotech firm said late Tuesday its first- quarter profit more than doubled to $1.33 a share.The company also said sales of its hepatitis C drug Sovaldi hit $2.27 billion worldwide in the quarter.

In earnings news on Wednesday, Procter & Gamble Co. (PG) is likely to report third-quarter earnings of $1.02 a share ahead of the opening bell.

In the afternoon, two tech heavyweights will be the center of attraction. Apple Inc.(AAPL) is expected to post second-quarter earnings of $10.19 a share when it reports after the bell, while Facebook Inc.(FB) is forecast to report earnings of 24 cents a share in the first quarter.

In other financial markets, most metals advanced, with gold (GCM4) rebounding from a three-week low reached on Tuesday. Oil declined (CLM4), while the dollar (DXY) also moved lower.

More must-reads from MarketWatch:

Putin allies take over Russia'sFacebook(FB); founder ousted by Kremlin

Drinking and cursing, Carl Icahn stands firmly behind Apple(AAPL)

U.S. sends troops near Russia as Ukraine tensions build

-Sara Sjolin; 415-439-6400; [e-mail]

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(END) Dow Jones Newswires
04-23-140614ET
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