Azernews.Az

Monday, November 2, 2026

U.S. stock-index futures fluctuate before fed minutes, earnings

8 October 2014 17:04 (UTC+04:00)
U.S. stock-index futures fluctuate before fed minutes, earnings

By Bloomberg

U.S. stock-index futures fluctuated, after the Standard & Poor's 500 Index fell to an eight-week low, as the Federal Reserve releases minutes from its latest meeting and the corporate earnings season begins.

Symantec Corp. rallied 3.8 percent after people familiar with the matter said it is exploring a split. Yum! Brands Inc. added 0.4 percent after posting profit that exceeded estimates and a forecast that missed projections. Costco Wholesale Corp. jumped 2.3 percent after saying profit topped forecasts. Monsanto Co. slid 1.1 percent as its earnings forecast fell short of estimates.

Futures on the S&P 500 expiring in December added 0.1 percent to 1,930.10 at 8:50 a.m. in New York. Dow Jones Industrial Average contracts slipped 2 points to 16,649.

"The Fed minutes will be vital for an indication as to the outlook for interest-rate rises," Nick Skiming, who helps oversee about $10 billion at Jersey, Channel Islands-based Ashburton Ltd., said by phone. "Given the overall weakness in markets, the Fed may temper some comments. U.S. earnings also kick off today and, on a comparative basis from a year earlier, should be reasonably good. The commentary by the Fed will outweigh any short-term moves in the market."

The S&P 500 slid 1.5 percent yesterday as the International Monetary Fund cut economic-growth forecasts and warned of "frothy" equities. That took its loss from a Sept. 18 record to 3.8 percent.

Small-Cap Slide

The Russell 2000 Index of small companies led declines with a 1.7 percent drop, its biggest since July 31. The gauge has plunged 11 percent since a March record.

The Federal Open Market Committee will release minutes from its Sept. 16-17 meeting at 2 p.m. Washington time. In a statement following that gathering, policy makers renewed their pledge to keep interest rates near zero for a "considerable time" after ending bond purchases this month. They also projected a steeper increase in borrowing costs next year.

Chicago Fed President Charles Evans, a voting member of the FOMC next year, said today that officials should be "exceptionally patient" before they start to raise rates.

U.S. unemployment remains too high and a stronger dollar could hurt the country's exports while preventing inflation from rising to the Fed's goal, Evans said in remarks prepared for delivery in a speech in Plymouth, Wisconsin.

Earnings Start

Evans's comments were his first in public since data released on Oct. 3 showed that unemployment unexpectedly fell to 5.9 percent in September from 6.1 percent the month before.

Investors will also seek clues on the strength of the U.S. economy from corporate results, with Alcoa Inc. unofficially starting the earnings season after the close of markets today. Profit at companies in the S&P 500 rose 4.9 percent in the July- September period, according to the average estimate of analysts in a Bloomberg survey.

The benchmark index has fallen 3.3 percent in the past month, the worst pre-earnings performance since 2009. The gauge has averaged a 2.2 percent gain in the month before earnings start the bull market began.

Costco rose 2.7 percent to $128.71. The largest U.S. warehouse-club chain posted fiscal fourth-quarter profit that topped analysts' estimates as sales at its established stores increased.

Yum, Monsanto

Yum gained 0.4 percent to $70.02. The owner of the KFC and Taco Bell fast-food chains reduced its forecast for profit this year as another food-supplier probe hurts sales in its China division. Adjusted profit in the last quarter topped estimates.

Symantec gained 3.8 percent to $24.07 after people familiar with the matter said the software company is in advanced talks to break up its business into two entities -- one offering security programs and another focusing on data storage.

Monsanto lost 1.2 percent to $106.97. The world's largest seed company forecast fiscal 2015 earnings that trailed analysts' expectations as tumbling grain prices leave farmers with less to spend.

Alexion Pharmaceuticals Inc. slid 2.9 percent to $163.05. The drugmaker focused on treatments for rare diseases said Chairman Max Link, 74, died on Oct. 5 while traveling on business. The board said it will announce a new chairman in the coming days.

Here we are to serve you with news right now. It does not cost much, but worth your attention.

Choose to support open, independent, quality journalism and subscribe on a monthly basis.

By subscribing to our online newspaper, you can have full digital access to all news, analysis, and much more.

Subscribe

You can also follow AzerNEWS on Twitter @AzerNewsAz or Facebook @AzerNewsNewspaper

Thank you!

Loading...
Latest See more