While earnings will continue to dominate the market with a slew of companies, including Ford Motor, United Parcel Service, and Office Depot, slated to release their report cards, traders might turn their focus to the FOMC meeting starting today and economic data related to consumer confidence and home price index for more cues on economic recovery.
Weak trading across the global markets, lingering concerns about debt crisis in Greece and China's moves to cool-off its economy might also impact market sentiment.
As of 6.15 am ET, the Dow futures were down 17.00 points, the S&P 500futures were down by 3.50 points, and the tech-heavy Nasdaq 100 futures were down by 5.50 points.
On the economic front, S&P/Case-Shiller home price index for February will be released at 9.00 a.m. ET. Economists expect the index to show an increase of 1.1% for the month following a 0.7% decline in the previous month.
At 10.00 a.m. ET, the Conference Board will release its consumer confidence report for April. Economists expect the index to move up to 53.5 from 52.5 reported for the previous month.
The Federal Reserve Open Market Committee will commence its 2-day meeting today and a statement will be released tomorrow afternoon, which will provide clues about the assessment of the economy by the Federal Reserve as well as its short-term treatment measures for the health of the economy.
Before the markets open for trading, 3M Co. (MMM), Automatic Data Processing Inc. (ADP), Avery Dennison Corp. (AVY), B/E Aerospace (BEAV), soft drink bottler Coca-Cola Enterprises Inc. (CCE), Cummins Inc. (CMI), Ecolab, Inc. (ECL), Estée Lauder Companies Inc. (EL), Ford Motor Co. (F), Hospira Inc. (HSP), Lazard Ltd. (LAZ), Lexmark International Inc. (LXK), book publisher McGraw-Hill Cos., Inc. (MHP), gold producer Newmont Mining Corp. (NEM), office supplies retailer Office Depot Inc. (ODP), Tellabs Inc. (TLAB), Tyco International Ltd. (TYC), United Postal Service (UPS), U.S. Airways (LCC) and Western Union Co. (WU) are among the major companies that would be reporting the quarterly earnings.
AFLAC Inc. (AFL), Broadcom Corp. (BRCM), DTE Energy Co. (DTE), Norfolk Southern Corp. (NSC), Questar Corp. (STR), XL Capital Ltd. (XL), DaVita, Inc. (DVA),Hutchinson Technology Inc. (HTCH), Fidelity National Information Services Inc. (FIS), Life Technologies Corp. (LIFE), RenaissanceRe Holdings Ltd. (RNR), Stanley Black & Decker, Inc. (SWK) and Dreamworks Animation (DWA) are among the major companies that will report their quarterly results after the markets close for trading.
Earlier in the day, British oil and gas giant BP plc (BP) reported a surge in first-quarter profit, as sales and other operating revenues increased over 54% from last year reflecting the recovery in oil prices. In the first quarter, profit attributable to BP shareholders surged to $6.079 billion or 31.99 cents per share from $2.562 billion or 13.54 cents per share.
Traders will also react to theearnings/announcements made after the markets closed for trading in the previous session.
Texas Instruments Inc. (TXN) said that its first quarter profit rose sharply from last year, helped by higher revenue, improved gross margins and fewer restructuring charges. The company's quarterly earnings per share also came in above analysts' expectations as did its quarterly revenue. At the same time, the company forecast second quarter revenue and earnings above analysts' current consensus estimate.
Universal Health Services, Inc. (UHS) reported an increase in first quarter profit helped by improved revenue from acute care and behavioral health care facilities. Earnings surpassed Street estimates, while revenue missed expectations for the quarter.
Medical device maker Boston Scientific Corp. (BSX), reported a wider net loss for the first quarter, hurt by hefty goodwill impairment charges, and a hold on product shipments. Looking ahead, the company lowered its earnings outlook for the full year 2010, citing the ship hold and product removal actions.
Swiss eye care company Alcon Inc. (ACL) said that its first quarter profit rose 27% from last year, as sales increased 15% driven by continued market share gains in most major product categories, balanced contributions from all geographic regions and generally improved market conditions. The company's quarterly earnings per share, excluding items, also came in above analysts' expectations as did its quarterly sales. At the same time, the company reaffirmed its sales and earnings guidance for the full year.
Plum Creek Timber Co. Inc. (PCL) reported a sharp decline in its first quarter, hurt mainly by lower revenues, as real estate revenues dropped significantly year-over-year. Nevertheless, the company's earnings as well as revenues came in well ahead of Street estimates. Looking ahead, the company issued second quarter earnings guidance, hinting it would miss estimates.
Oil Light sweet crude oil for June delivery is presently quoted at $83.31 a barrel, down $0.89 from its previous close of $84.20 a barrel in New York on Monday.
Dollar The U.S. dollar is presently gaining against the euro and the pound, but showing weakness against the yen.
World Markets The markets in Asia, except Japan, ended in the negative territory on Tuesday, as traders preferred to lock in gains and move to the sidelines ahead of key economic data including the FOMC meeting in the US during the week in addition to earnings which is gaining further momentum. Lingering concerns about debt crisis in Greece, fresh worries about China's initiatives to cool off its economy, and lower commodity prices also impacted market sentiment. Japanese market, however, managed to end in positive territory lifted by Fanuc's better than expected earnings and revised outlook. The European markets are presently trading in negative territory, dragged down by banks.
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