U.S. stock futures were lower early Wednesday morning as oil prices rebounded following Iran testing a long-range missile. Oil has dropped over $9 the past two days, allowing the market Tuesday to stage a rally on financials. Today, ahead of the crude inventory report, it seem oil will renew its center stage focus, damping mood despite somewhat encouraging results from aluminum giant Alcoa Tuesday after the close.On Tuesday, after having a shaky start, U.S. stocks closed with significant gains after Federal Reserve Chairman Ben Bernanke said the Fed will try to further help brokerages with emergency funds to tap. This helped financials rally from recent doldrums. Of course, having oil prices easing by the biggest two-day drop in almost four months helped push stocks higher as well. The Dow industrials ended 152 points higher, or 1.36%, the Nasdaq Composite rose 51 points, or 2.28%, and the S&P 500 added 21 points, or 1.71%.
But oil prices this morning are again moving higher after Iran test-fired nine missiles, renewing fears of a conflict that could cut global oil supplies. Also today, traders are waiting for the weekly report on fuel inventories from the U.S. Department of Energy due at 10:30 a.m. EDT.
In corporate news, Alcoa Inc. (NYSE: AA) shares were nearly 3.5% higher in after-hours trading following the report of its second-quarter results Tuesday after the close, which kicked off the second-quarter earnings period. While the aluminum giant posted a drop in quarterly profit on higher costs, it beat Wall Street estimates. Higher prices couldn't offset enough the higher costs, which will likely continue.
Meanwhile, retail continues to hurt with chain Steve & Barry's close to filing for bankruptcy. The Wall Street Journal says that Sears Holdings (NASDAQ: SHLD) is interested in acquiring some of the clothing chain's labels.
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