Stock Futures Inch Higher in Day Two of Yellen Testimony
New York (Jun 22) Stock futures inched higher on Wednesday, looking to add to two days of gains, as investors awaited further comments from Federal Reserve Chair Janet Yellen.
S&P 500 futures were up 0.12%, Dow Jones Industrial Average futures climbed 0.13%, and Nasdaq futures added 0.22%.
Yellen will speak to the House Financial Services Committee on Wednesday. The address before lawmakers will cover monetary policy and the overall health of the U.S. economy.
A "cautious approach" to rates "remains appropriate," Yellen said in testimony to the Senate Banking Committee in Washington on Tuesday. Yellen also noted that recent data suggested a slight weakening, pointing to slack in the labor market, though it could be transitory.
"We expect [Wednesday's] statement to be very similar to last week's press conference, though she is likely to be subjected to a more caustic question-and-answer session," BNP Paribas analysts wrote in a note.
Thursday's "Brexit" vote also was keeping global traders on their toes. U.K. citizens will head to the polls on Thursday to vote on whether or not to leave the European Union. Current polls suggest odds are 50-50. An exit from the EU would have significant repercussions for the region's economic and political stability.
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Tesla Motors (TSLA) made a surprise stock offer of up to $2.8 billion for struggling solar energy company SolarCity (SCTY) in a move to combine CEO and entrepreneur Elon Musk's companies. The automaker offered $26.50 to $28.50 a share for SolarCity, a 21% premium to Tuesday's close.
Adobe (ADBE) exceed earnings expectations, but only matched sales estimates. The software developer earned 71 cents a share, 3 cents more than expected, while revenue of $1.4 billion met forecasts. Shares fell 4.5% in premarket trading. Revenue from Adobe's digital media segment rose 26%, while creative revenue increased 37%.
FedEx (FDX) topped both earnings and sales estimates in its fourth quarter. The delivery company earned an adjusted $3.30 a share over the quarter, 2 cents above estimates, while revenue surged 7.3% to $13 billion. However, the delivery company issued a cautious outlook for the next 12 months, expected adjusted earnings no higher than $12.25 a share.
KB Home (KBH) climbed after a better-than-expected second quarter, another benefactor of the solid housing market. The homebuilder earned 17 cents a share, 3 cents above estimates, while revenue rocketed 30.2% higher. Overall housing demand has been strengthened by low interest rates and tightening inventories.
Source: TheStreet
