Early indications suggest that Wall Street stocks may open slightly lower on Wednesday, as caution takes hold of the markets ahead of the release of some key data on retail sales and the manufacturing sector and another batch of earnings reports. Notwithstanding the oversold levels, traders may prefer to stay on the sidelines, given the uncertainty concerning the fundamental strength. Global cues are mixed, with Asian stocks having closed the session mostly higher, while the European markets are moderately lower.
At 6:15 am ET, the Dow futures are slipping 3 points, the S&P 500 futures are receding 2.70 points and the Nasdaq 100 futures are moving down 1.50 points.
The selling in U.S. stocks stalled on Tuesday amid the release of some mixed earnings reports.
On the economic front, the Commerce Department is scheduled to release its retail sales report for September at 8:30 am ET. Economists expect a 0.1 percent month-over-month decline in retail sales. Excluding autos, sales may have risen 0.3 percent. Around the same time, the Labor Department is due to release its report on producer prices. The producer price index and the core producer price index for final demand are both expected to have risen 0.1 percent.
Also at 8:30 am ET, the New York Federal Reserve is due to release the results of its manufacturing survey for October. The general business conditions index may have slipped to 20.50 from 27.54 in September.
The Commerce Department is also due to release its business inventories report for August. The consensus estimate calls for a 0.4 percent month-over-month increase in business inventories for the month. The Federal Reserve is scheduled to release its Beige Book, which gives anecdotal evidence of economic conditions in the 12 Federal Reserve districts at 2 pm ET.
In corporate news, Intel (INTC) reported third quarter results that were ahead of expectations. The company's fourth quarter revenues guidance was also positive.
Linear Technology's (LLTC) first quarter results trailed estimates. The company issued second quarter revenue growth guidance that was below estimates. Separately, the company announced that Paul Coghlan will retire as its CFO at the end of the current fiscal year in July 2015.
ADTRAN (ADTN) reported third quarter non-GAAP earnings of 25 cents per share on revenues of $162.89 million. The results exceeded estimates. CSX (CSX) reported third quarter earnings of 45 cents per share on revenues of $3.2 billion. The results were better than expected. Healthcare Services' (HSCG) third quarter earnings were ahead of expectations, while its revenues trailed estimates. American Express (AXP), eBay (EBAY), Kinder Morgan (KMI), Kinder Morgan Partners (KMP), Las Vegas Sands (LVS), Netflix (NFLX) and United Rentals (URI) are among the companies due to release their quarterly results after the close of trading.
Qualcomm (QCOM) reached agreement with CSR regarding the terms of a recommended cash offer through which the entire issued and to be issued ordinary share capital of CSR will be acquired by Qualcomm for 1.56 billion pounds.
Most Asian markets advanced amid bargain hunting and a modest rebound in crude oil, although the South Korean and Taiwanese markets retreated.
The Japanese market rebounded on a rebound by the dollar, which pushed the yen lower. The Nikkei 225 average opened ended down 137.01 points or 0.92 percent at 15,074. Australia's All Ordinaries added 34 points or 0.65 percent before closing at 5,238. Hong Kong's Hang Seng Index closed at 23,140, up 92.08 points or 0.40 percent, and China's Shanghai Composite ended the session 14.19 points or 0.60 percent higher at 2,374.
On the economic front, a report released by China's National Bureau of Statistics showed that consumer prices in China rose 1.6 percent year in September following the 2 percent increase in August. Economists expected a 1.7 percent increase for the month. Meanwhile, producer prices fell a steeper 1.8 percent.
The results of a survey by Westpac showed that consumer confidence in Australia improved slightly in October. The consumer confidence index rose 0.9 percent to 94.8. Meanwhile, the Australian Bureau of Statistics reported that motor vehicle sales rose 2.9 percent month-over-month in September, reversing the 1.8 percent drop in August.
European stocks opened lower and are witnessing some volatility in early trading. The averages are currently trading moderately lower. Traders are reacting to some corporate tidings and tame Chinese inflation data even as they stay tuned to a few key U.S. economic data.
In corporate news, Chip equipment maker AMSL reported higher profits for its third quarter and said its fourth quarter sales will be about 1.3 billion euros, ahead of estimates by most economists. The company also affirmed its full year sales guidance. Danone's third quarter sales also exceeded estimates and it confirmed its full year guidance. Rio Tinto (RIO) said its iron ore output was up 13 percent in the third quarter and it raised its full year mined copper forecast.
On the economic front, revised estimates released by German Federal Statistical Office confirmed the flash estimate for an annual inflation rate of 0.8 percent for September. On a monthly basis, consumer prices were unchanged. The U.K. Office for National Statistics released a report showing a small decline in the U.K. jobless rate to 6 percent in the three months ended August to 6.1 percent in the three months ended July. Claimant count fell by 18,600 in September compared to expectations for a 35,000-drop.
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