Stock Futures Jump Ahead of Yellen Testimony
New York (Feb 10) Stock futures set up for a bounce on Wednesday as investors awaited Federal Reserve Chair Janet Yellen's testimony to Congress.
S&P 500 futures were up 1%, Dow Jones Industrial Average futures added 0.76%, and Nasdaq futures rose 1.4%.
Investors will be closely listening to Yellen's testimony for signs as to the Fed's future rate hike plans. Wall Street remains concerned the central bank will move forward with additional rate hikes following December's move even as the economy shows signs of weakness. Yellen is scheduled to deliver the central bank's semiannual monetary policy report to the House Financial Services Committee on Wednesday and Senate Banking Committee on Thursday.
Crude oil jumped on Wednesday on hopes of production cuts in the Middle East. Iranian Oil Minister Bijan Zangeneh told reporters that the country was open to cooperation with Saudi Arabia to discuss limiting output to address oversupply worries. West Texas Intermediate crude oil added 2.2% to $28.55 a barrel.
Walt Disney (DIS) fell in premarket trading despite reporting record earnings. The company benefited from the blockbuster release of Star Wars: The Force Awakens last December. The world's largest entertainment company earned $1.63 a share in its first quarter, 18 cents above estimates, while revenue soared 14% to $15.24 billion. However, television profits declined by 6%, driven by a drop in subscribers from ESPN and lower advertising revenue from A&E.
Time Warner (TWX - Get Report) rose after reporting a better-than-expected fourth quarter and raising its dividend. The media giant earned $1.06 a share, a nickel above estimates, as its HBO and Turner Broadcasting segments drove sales. Time Warner raised its dividend by 15% and authorized a new $5 billion share buyback program.
Anadarko Petroleum (APC - Get Report) shares were on watch after the oil company slashed its quarterly dividend to 5 cents a share from 27 cents. CEO Al Walker said the reduced dividend was an "appropriate action to take in the current environment."
SolarCity (SCTY - Get Report) plunged more than 29% despite a better-than-expected quarter. The solar power company reported a net loss of $2.37 a share, 22 cents narrower than expected, while revenue jumped 61% to $115.5 million. However, SolarCity did fall short of the number of installations expected over fiscal 2015.
Urban Outfitters (URBN - Get Report) was slightly lower in premarket trading after reporting a 2% decline in same-store sales in its fourth quarter. Full-year sales totaled $3.4 billion, below consensus of $3.5 billion.
Deutsche Bank (DB - Get Report) shares rebounded strongly Wednesday after a report said the bank may buy back some of its own bonds to strengthen its finances. According to reports, the bank could buy back several billion euros worth of its own debt. Shares rose 15% in midday trading in Europe, following days of losses.
Source: TheStreet
