Stock Futures Suggest a Mixed Start for Wall Street as Crude Levels Off
New York (June 23) Stock futures were narrowly mixed on Friday, June 23, as crude oil prices levelled off and healthcare took a break from two days of gains.
S&P 500 futures were up 0.02%, Dow Jones Industrial Average futures were down 0.18%, and Nasdaq futures declined 0.09%.
Crude oil prices levelled off below $43 a barrel on Friday, stabilizing after two days of losses followed by a day of gains. A selloff over Tuesday, June 20, and Wednesday, June 21, sent prices to their lowest level in 10 months. Crude oil prices moved into a bear market, after having fallen more than 20% from a late February high. Oil had been lower on worries over global oversupply and ballooning production.
West Texas Intermediate crude was up 0.16% to $42.87 a barrel on Friday morning.
Healthcare stocks were also stable on Friday after two days of gains. The sector had rallied on high hopes that the Senate GOP healthcare bill and relaxed regulations from the Trump White House would benefit drugmakers.
The economic calendar in the U.S. on Friday includes a flash reading of the PMI Composite for June at 9:45 a.m. ET, new home sales for May at 10 a.m., and the weekly oil rig count from Baker-Hughes at 1 p.m.
In Fedspeak, St. Louis President James Bullard will discuss the U.S. economy and monetary policy at an event in Nashville, Cleveland President Loretta Mester will make the keynote speech at The Policy Summit on Housing, Human Capital and Inequality in Ohio, and Fed Gov. Jerome Powell will address the Federal Reserve Bank of Chicago Symposium.
Finish Line Inc. (FINL) fell nearly 2% in premarket trading after reporting an unexpected decline in same-store sales over its first quarter. Same-store sales over the three-month period dropped by 1.1%, a surprise to analysts expecting an increase of 1.6%. The shoe retailer met profit estimates over its recent quarter, though revenue fell short of consensus.
Bed, Bath & Beyond Inc. (BBBY) tumbled 10% after missing profit and sales estimates over its recent quarter. Earnings of 53 cents a share weakened from 80 cents a year earlier and missed estimates of 66 cents. Revenue came in flat at $2.74 billion and fell short of $2.79 billion consensus. The homewares retailer said digital sales were strong, though endured in-store sales softness.
BlackBerry Ltd. (BBRY) was sharply lower in premarket trading after a mixed quarter. The tech company swung to a net profit of $1.23 a share from a loss of $1.28 a share in the same quarter a year earlier. Adjusted earnings of 2 cents a share came in better than an expected breakeven result. However, revenue declined to $235 million from $400 million and adjusted revenue missed estimates.
Caterpillar Inc. ( CAT) fell on Friday after analysts at Deutsche Bank cut their rating for stock from buy to hold. The broker also cut its price target for the shares, to $106, saying much of the benefit from a nascent recovery in the mining sector has already been priced into the stock.
Source: TheStreet
