By Anora Mahmudova and Sara Sjolin, MarketWatch
J.P. Morgan climbs after earnings beat views
NEW YORK (MarketWatch)--U.S. stock futures were slightly lower
but traded in a tight range after a rebound in retail sales and an
uptick in producer prices both came in slightly below
expectations.
Investors were also assessing earnings reports. J.P. Morgan's
results--the first major earnings report of the day--beat forecasts
and sent the bank's shares higher in premarket trading.
Futures for the Dow Jones Industrial Average (YMM5) dropped 9
points to 17,901, while those for the S&P 500 index (ESM5) fell
2 points, or 0.1%, to 2,084.80. Futures for the Nasdaq 100 index
(NQM5) were down 2 points at 4,401.25.
On Monday, the benchmarks settled lower in a thinly traded
session (http://www.marketwatch.com/storyno-meta-for-guid) as
concerns persisted that the first-quarter earnings season will be a
disappointing affair.
"Thanks to the strength of the dollar and lower energy prices,
analysts have been progressively downgrading their estimates of
profit growth. So far, U.S. equity markets have taken these
earnings downgrades in their stride," said Rebecca O'Keeffe, head
of investment at stockbroker Interactive Investor, in a note.
"However, if there is evidence that the picture is not improving
in Q2, the market may find it more difficult to sustain current
valuations, especially if rising employment levels raise the
prospect of a potential June rate hike from the Fed," she said.
Earnings: Banking major J.P. Morgan Chase & Co. (JPM)
reported rises in first-quarter profit and revenue above analyst
forecasts, lifting the shares 1.1% premarket.
Wells Fargo & Co.(WFC) reported that its first-quarter
profit fell, the first such drop in 18 quarters. Shares fell 1%
premarket.
The two companies kick off earnings season for large U.S. banks,
with Bank of America Corp. (BAC), Citigroup Inc. (C) and Goldman
Sachs Group Inc. (GS) reporting later in the week.
Also reporting before the market open Tuesday, drug maker
Johnson & Johnson(JNJ) reported an 8.6% decline in
first-quarter profit and reduced its 2015 per-share earnings
outlook. Shares were slightly higher, however.
Intel Corp.(INTC) is slated to report after the bell. The chip
maker is expected to post first-quarter earnings of 41 cents a
share.
CSX Corp.(CSX) is expected to report first-quarter earnings of
44 cents a share after the market closes. CSX shares fell in
sympathy after-hours Monday, after Norfolk Southern Corp.'s (NSC)
warned on profit
(http://www.marketwatch.com/story/norfolk-southern-view-misses-estimates-2015-04-13)
due to lighter-than-expected coal shipments. Norfolk Southern
shares were down 6.1% ahead of the bell on Tuesday.
Other stocks to watch: Shares of Best Buy Co. (BBY) could be
active after the electronics retailer late Monday said its
chairman, Hatim Tyabji, will retire on June 9
(http://www.marketwatch.com/story/best-buy-chairman-hatim-tyabji-to-retire-2015-04-13)
after three years in the role.
Data: There is also plenty to look for on the data calendar
Tuesday. Sales at U.S. retailers
(http://www.marketwatch.com/story/retail-sales-rebound-09-in-march-after-three-straight-declines-2015-04-14)
rose in March by the largest amount in a year, rebounding after
three straight monthly declines. However, the rebound was weaker
than expected.
U.S. producer prices
(http://www.marketwatch.com/story/march-producer-prices-rise-02-first-gain-since-october-2015-04-14)
rose a seasonally adjusted 0.2% in March after four straight
monthly declines, the Labor Department said Tuesday.
The NFIB small-business index for March fell to its lowest
reading
(http://www.marketwatch.com/story/small-business-optimism-slumps-to-nine-month-low-nfib-2015-04-14)
in nine months. February business inventories data are due at 10
a.m.
Minneapolis Fed President Narayana Kocherlakota will speak at an
open forum about the economy in Winona, Minn., at 8 p.m. Eastern.
Kocherlakota isn't a voting member of the Federal Open Market
Committee this year.
Other markets: Asian markets closed mixed
(http://www.marketwatch.com/storyno-meta-for-guid), while European
stocks were lower
(http://www.marketwatch.com/storyno-meta-for-guid) almost across
the board as investors remained concerned about Greece's bailout
program.
Oil prices (CLK5) kept moving higher
(http://www.marketwatch.com/storyno-meta-for-guid) on hopes U.S.
shale oil production has peaked and may start falling. Metals fell
(GCM5), while the dollar (DXY) was little changed.
Subscribe to WSJ: http://online.wsj.com?mod=djnwires