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Futures Rise Ahead Of Fed Statement, Housing Data; Facebook (FB) Soars

 October 24, 2012 09:15 AM
 

(By Balachander) U.S. stock index futures pointed to a higher open on the Wall Street ahead of the Federal Reserve's policy statement and domestic housing data. Upbeat quarterly earnings and guidance from Boeing also buoyed sentiment.

Mini Dow Industrial Average futures rose 36 points to 13,077. The Nasdaq futures added 9.75 points to 2,670.75. Standard and Poor's 500 futures gained 5.10 points to 1,411.90. 

On the economic front, investors keenly expect an announcement on interest rates from the latest Federal Reserve policy meeting. The FOMC statement is due at 2:15 pm ET.

At 10 am ET, a report may show that new home sales - which measures the annualized number of new single-family homes that were sold during the previous month - rose to 385,000 from 373,000.

On Tuesday, U.S. stocks closed on a sharply lower note as disappointing earnings and guidance from companies including DuPont (DD), United Technologies (UTX) and 3M (MMM), continued to dent sentiment. Apple Inc. (NASDAQ: AAPL) declined 3.26 percent after the technology behemoth unveiled its "iPad Mini".

Hot Stocks Of The Day: BA, T. ZNGA, LLY, EMC, FB, NFLX, MNST, DCI, BRCM, SIRI

In corporate news, Boeing Co. (NYSE: BA) jumped 2.72 percent in premarket after the aerospace giant raised its 2012 forecast following better-than-expected quarterly earnings, driven by strong commercial airplane deliveries.

AT&T Inc. (NYSE: T), the second largest wireless carrier in the U.S., posted better-than-expected quarterly earnings driven by growth in smartphone sales. Shared edged lower in premarket.

Zynga Inc. (NASDAQ: ZNGA) rose 5.00 percent in premarket after the social media games company said it will eliminate games, close studios and slash jobs to reduce costs.

Eli Lilly & Co. (NYSE: LLY) dropped 2.23 percent in premarket after the pharmaceutical giant slashed its forecast for 2012 following weaker-than-expected quarterly earnings, as patent expirations of anti-psychotic drug Zyprexa continued to drive lower revenue and margins.

EMC Corp. (NYSE: EMC) shed 1.05 percent in premarket after the provider of enterprise storage systems and software reported lower-than-expected quarterly results and reduced its revenue outlook for the full year.

Facebook Inc. (NASDAQ: FB) surged 24.51 percent after the social-networking company announced better-than-expected earnings and revenue for the third quarter.

Netflix Inc. (NASDAQ: NFLX) slumped 16.45 percent in premarket after the online video-rental service company posted its quarterly results and issued subscriber outlook.

Monster Beverage Corp. (NASDAQ: MNST) responded to inquiries it has received and numerous recent media reports related to a lawsuit that has been filed against the company by the family of 14-year old Anais Fournier, who died last December. Monster said its products are no way responsible for the death of Fournier and intends to defend the lawsuit. Shares added 2.85 percent in premarket.

Donaldson Co. Inc. (NYSE: DCI) retreated 3.95 percent after the maker of filtration systems reduced its earnings and sales guidance for the full year, blaming weakening of its end markets.

Broadcom Corp. (NASDAQ: BRCM), a maker of chips for cellphones and network equipment reported quarterly earnings that exceeded Wall Street expectations. Shares rose 1.92 percent.

SiriusXM Radio (NASDAQ: SIRI) said its chief executive Mel Karmazin will step down on February 1st, 2013 following the expiration of his employment agreement. Shares dropped 1.05 percent.

Global Markets:

European markets rose, with Germany's DAX up 0.39 percent to trade at 7,201.85. France's CAC40 rose 0.56 percent to trade at 3,425.61. U.K.'s FTSE 100 traded at 5,814.73, up 0.29 percent.

Among Asian markets, China's Shanghai Stock Exchange Composite Index inched up 0.07 percent to end at 2,115.99. Japan's Nikkei 225 dropped 0.67 percent to finish at 8,954.30. Hong Kong's Hang Seng Index added 0.31 percent to close at 21,763.78. India's BSE Sensex was shut for a holiday.

Commodity & Currency Scan:

Ahead of the opening bell, crude oil futures inched up 0.15 percent to $86.80 per barrel. Gold futures shed 0.01 percent to $1,709.3 per ounce.

In the currency market, the euro fell 0.33 percent against the U.S. dollar to 1.2943. The British pound advanced 0.35 percent against the greenback to 1.6009, while the dollar declined 0.03 percent against the Japanese yen to 79.8300.


Rich
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