
U.S. stock futures are indicating a
higher open for U.S. stocks at this time (7:05 a.m.). A day after markets took a little breather from the rally sparked by the Federal Reserve rate cut on Tuesday, they're right back at it following positive earnings reports from Oracle and Nike.
Yesterday, U.S. stocks ended lower as the National Retail Federation gave its reduced outlook to this year's holiday season. With mixed earnings reports, a weak dollar and record-high oil, stocks lost some ground with the Dow industrials falling 48 points (0.36%), the S&P 500 10 points (0.67%) and the Nasdaq Composite 12 points (0.46%).
Not much economic news is due out today so investors will likely focus on earnings. Former Federal Reserve Chairman
Alan Greenspan's comments
regarding housing prices will not go unnoticed either. Greenspan said that due to large supplies, U.S. house prices will go down further, but, he added, that it is too early to say if the economy will plunge into recession. Other Fed officials will also speak today.
While the upbeat mood seems to be back with the Dow only 1.7% away from its record close, renewed inflation concerns from rising oil prices could dampen that mood. The low dollar and lingering problems in the credit markets and the housing sector are additional causes for concern.
Overseas, Asian markets ended mostly lower except for Hong Kong. In Europe, stocks seem to generally trade higher despite a report indicating economic growth may be slowing as Europe's manufacturing and service industries
grew the slowest in two years this month after paralysis in the credit markets hurt banks.
Yesterday after the close,
Oracle (NASDAQ:
ORCL)
reported a 25% jump in its net income for the first quarter. Revenue surged 26% to $4.53 billion, marking the sixth straight quarter with sales growth of 20% or more.
Nike (NYSE:
NKE) also reported after the close yesterday. The company's
profit grew 51% to $569.7 million, or $1.12 per share, from $377.2 million, or 74 cents, in the year-ago period. Excluding a one-time 20-cent charge released to a tax benefit, the company would have earned 92 cents, besting analysts' expectations of 87 cents per share.
The problems in the credit market continue to be apparent in deal making (or lack thereof). KKR and Goldman Sachs (NYSE: GS) may be
walking away from a deal to buy
Harman International (NYSE:
HAR), the big audio components company, according to
The Wall Street Journal.
General Motors (NYSE:
GM)'s latest offer on the issue was
rejected by the UAW president, but the two continued to discuss the automaker's proposal to pay the union to take on retiree health expenses.