With the Fed meeting past, the markets have chosen to tread cautiously after reacting positively to the policy statement released on Wednesday. The major U.S. index futures now point to a narrowly mixed opening. The dollar is firmer with the markets factoring in a September or December rate hike, given the likelihood that Chair Janet Yellen can calm the markets at the press conference that would accompany each of these meetings.
Commodities are mostly lower, although crude oil is seeing a modest bounce. Traders may also react negatively to lackluster guidance released by companies. The spotlight is also likely to be on the advance second quarter GDP data due shortly before the markets open.
At 6:15 am ET, the Dow futures are up 2 points and the Nasdaq 100 futures are moving up 6.75 points, while the S&P 500 futures are receding 0.50 points.
U.S. stocks advanced yet again on Wednesday, as the FOMC statement relayed optimism concerning the economy.
On the economic front, the Labor Department is scheduled to release its jobless claims report for the week ended July 25th at 8:30 am ET. Economists expect jobless claims to have risen to 272,000 from 255,000 in the previous week.
Around the same time, the Commerce Department is set to release its advance estimate of second quarter GDP data. The consensus estimate calls for a 2.9 percent sequential increase in GDP. The Treasury will announce the results of its auction of 7-year notes at 1 pm ET.
In corporate news, Facebook (FB) reported better than expected second quarter results. Whole Foods' (WFM) fourth quarter results trailed estimates and the company's fourth quarter and full year guidance was downbeat.
Mariott International (MAR) reported better than expected second quarter earnings, while its revenues missed expectations. While the company issued weak third quarter earnings per share guidance, it raised its full year earnings per share guidance.
O'Reilly (ORLY) reported better than expected second quarter results, while its full year guidance was lackluster. Western Digital (WDC) reported above-consensus earnings for its fourth quarter, while its sales missed estimates. Williams Companies (WMB) reported smaller than expected second quarter earnings and revenues and lowered its full year 2015 adjusted EBITDA guidance.
Among insurers, Unum Group (UNM) reported in line second quarter operating earnings per share and better than expected revenues. Meanwhile, Lincoln National (LNC) reported below-consensus operating earnings but revenues beat estimates. MetLife (MET) reported better than expected second quarter earnings per share, while its revenues were shy of estimates.
Wynn Resorts (WYNN) reported second quarter adjusted earnings and revenues that trailed estimates, hurt by weakness at its Macau and Las Vegas operations. Baidu.com (BIDU) announced a $1 billion stock buyback program.
Amgen (AMGN), Applied Micro (AMCC), Broadcom (BRCM), Cray (CRAY), Deckers Outdoor (DECK), Electronic Arts (ERTS), Expedia (EXPE), Fluor (FLR), Hanesbrand (HBI), Hutchison Technology (HTCH), Ingram Micro (IM), KLA-Tencor (KLAC), LinkedIn (LNKD), Qlogic (QLGC), Western Union (WU) and YRC Worldwide (YRCW) are among the companies due to release their quarterly results after the close of trading.
The Asian markets ended mixed, as the optimism generated by the lack of clear-cut itinerary for a U.S. interest rate hike in the FOMC statement was offset to some extent by worries concerning China. The Chinese market continued its gyration, keeping in line with its recent up and down performance.
A weaker yen gave a solid lift to the Japanese market, with the Nikkei 225 average ending up 219.92 points or 1.08 percent at 20,523. Australia's All Ordinaries hovered in positive territory throughout the session, ending 43.50 points or 0.78 percent higher at 5,653. Meanwhile, China's Shanghai Composite Index ended 83.40 points or 2.20 percent lower at 3,706 and Hong Kong's Hang Seng Index closed at 24,498, down 121.47 points or 0.49 percent.
On the economic front, a report released by the Australian Bureau of Statistics showed that building approvals in Australia fell 8.2 percent month-over-month in June, deeper than the 1 percent drop expected by economists.
Japan's Ministry of Economy, Trade and Industry reported that industrial production rose 0.8 percent month-over-month in June, ahead of the 0.3 percent increase expected by economists. Annually, industrial output rose 2 percent.
After a strong opening, European stocks have turned lackluster by late morning trading. Currently, the three major averages in the region are holding up, as traders react to a fresh wave of earnings and overnight's FOMC announcement.
In corporate news, Deutsche Bank (DB) reported higher second quarter profit, thanks to strong performance by its investment-banking arm. Shell (RDS) announced the elimination of 6,500 jobs after reporting a decline in its second quarter profits on the back of falling oil prices. Lufthansa reported higher second quarter profits and sales but warned of challenging second half.
On the economic front, a report released by the German Federal Labor Agency showed that unemployment rate in Germany remained unchanged at 6.4 percent in July, in line with expectations. Meanwhile, the Federal Statistical Agency released its June employment report, showing an unchanged unemployed rate of 4.7 percent.
The results of the survey by the European Commission showed that economic confidence in the eurozone unexpectedly improved, with the corresponding indicator rising to 104 in July from 103.5 in June. The business confidence index also improved more than expected to 0.39. Meanwhile, final estimates revealed that the consumer confidence index weakened to -7.1 in July from -5.6 in June.
For comments and feedback contact: editorial@rttnews.com