By Kate Gibson and Barbara Kollmeyer, MarketWatch
NEW YORK (MarketWatch) — U.S. stock futures fell on Wednesday as
investors waited for U.S. Federal Reserve minutes, which could shed
light on when the central bank might begin slowing its bond purchases.
Lowe’s Cos shares rose in premarket after upbeat results, while Staples
Inc. shares sank after the group missed its forecasts and cut its
outlook. Still to come is a reading on existing-home sales.
Futures for the Dow Jones Industrial Average
DJU3
-0.09%
fell 28 points to 14,957, while those for the S&P 500 index
SPU3
-0.03%
lost 3.1 points to 1,647.50. Futures for the Nasdaq 100 index
NDU3
-0.07%
lost 5.25 points to 3,075.75.
On the economic front, July existing-home sales data are due for release
at 10 a.m. Eastern. Economists polled by MarketWatch expect sales of
existing homes rose to a seasonally-adjusted annual rate of 5.21
million, from a rate of 5.08 million in June. See preview.
The minutes of July’s Federal Reserve Open Market Committee meeting will
be released at 2 p.m. Eastern. Investors will look for any clues as to
when the Fed is thinking of cutting the pace of its $85 billion-a-month
bond-buying program. Many expect that tapering could being in September.
Read: What to expect from the July Fed minutes
“I think the best we can hope for is to get an indication about what the
numbers were like in terms of the voting in July and whether any of the
more dovish members were coming around to the idea of tapering in
September,” said Craig Erlam, market analyst at Alpari (UK) Ltd., in
emailed comments.
But that does not look set to happen, he added. “We’ve heard from a
number of Fed members since the meeting and the camp seems split pretty
evenly on the matter, which again, to me, suggests tapering in September
is unlikely,” Erlam said.
U.S. stocks mostly rose on Tuesday, helped by upbeat retailer results. The S&P 500 index
SPX
-0.58%
climbed 6.29 points, or 0.4%, to close at 1,652.35, halting its longest
losing streak this year. The Dow Jones Industrial Average
DJIA
-0.70%
ended at 15,002.99, down 7.75 points, or 0.1%, extending its losing streak to five sessions.
Retailers are making up a chunk of the corporate focus for Wednesday. Lowe’s
LOW
+3.92%
posted a 26% rise in profit, beating Wall Street forecasts, and lifted its full-year view. Shares rose 4.6% in premarket trading.
Staples
SPLS
-15.29%
said its second-quarter earnings fell 15% and reported lower sales due to weak sales overseas, and it cut its annual view. Shares dropped 11% in premarket trading.
Toll Brothers Inc.
TOL
+0.03%
said fiscal third-quarter profit fell 24% as it posted a tax expense, but said sales rose. Shares inched down 1.1% in premarket.
“We believe the recovery is real, and we are in the early stages of the
rebound,” said Toll Chief Executive Douglas C. Yearley Jr. in a
statement.
Target Corp.
TGT
-3.61%
reported second-quarter earnings of 95 cents a share, just missing a
forecast of 96 cents. Stripping out dilution from its Canada segment,
profit was $1.19 a share. Shares eased 1.8% in premarket.
In overseas markets, European stocks were largely under pressure as investors looked ahead to the Fed minutes. In Asia
it was a mix, with Hong Kong shares among those that fell, while Japan
shares rose after a choppy trading session, and Indonesian shares
rebounded from a string of recent falls.
Kate Gibson is a reporter for MarketWatch, based in New York. Follow her on Twitter @MWKateGibson.
Barbara Kollmeyer is an editor for MarketWatch in Madrid. Follow her on Twitter @MWBarbaraKollmeyer.
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