By Anora Mahmudova and Barbara Kollmeyer, MarketWatch
Burlington Stores Inc. jumps on earnings beat
NEW YORK (MarketWatch) -- Wall Street's strong start to the week
looked to be fading 24 hours later, as a report pointed to slack in
new home construction and investors attention turned squarely to
the start of the Federal Open Market Committee meeting on
Tuesday.
European stocks, which have been enjoying a climb higher fueled,
in part, by the European Central Bank bond-buying program, also
halted their ascent.
Futures for the Dow Jones Industrial Average (YMM5) fell 41
points to 17,815, while those for the S&P 500 index (ESM5) were
off 6.1 points to 2,062.75. Futures for the Nasdaq-100 index (NQM5)
dipped 7.5 points to 4,344.75.
Juiced by advances for global markets and a pullback for the
dollar (http://www.marketwatch.com/storyno-meta-for-guid), U.S.
stocks logged solid gains on Monday
(http://www.marketwatch.com/story/us-stocks-chinese-stimulus-soaring-european-stocks-send-futures-higher-2015-03-16),
with the S&P 500 (SPX) rising 27.79 points to 2,081.19, and the
Dow industrials (DJI) gaining more than 200 points. It was also a
strong day for biotechnology stocks, which helped push the Nasdaq
Composite (RIXF) 1.2% higher.
"The best argument for the dollar weakness and equity rally is
the growing consensus that as the FOMC removes the term 'patient,'
the action will be accompanied by new assurances meant to keep
markets satiated," said Michael O'Rourke, chief market strategist
at JonesTrading, in a note to clients.
Softer data Monday also gave stocks a lift as it contributed to
the view that the Fed may be pushing the timing of a rate hike
further out. The highly anticipated Fed meeting will conclude
Wednesday with a policy statement to follow.
In Tuesday's economic news, construction on new U.S. homes
slumped in February, mostly due to harsh winter, but permits
jumped, suggestion construction will pick up in the spring.
Read: Here's what to watch from the Fed this week
(http://www.marketwatch.com/story/heres-what-to-watch-from-the-fed-this-week-2015-03-16)
(http://www.marketwatch.com/story/heres-what-to-watch-from-the-fed-this-week-2015-03-16)Alvin
T. Tan, currency strategist at Société Générale, said in a note
that the pullback for the greenback has also been inspired by
speculation that, in a long-dollar market, the Fed might turn more
cautious following the strong dollar trend in recent months. The
greenback (DXY) was flat against major currencies on Tuesday.
Tan said he thinks the dollar still has room to advance over the
medium term, as the market still isn't close to pricing in a Fed
June rate hike.
Stocks to watch:Burlington Stores Inc.(BURL) rose 2.8% in
premarket trade, after the discount retailer posted
better-than-expected fourth-quarter profit and revenue.
Plug Power Inc.(PLUGD) shares dropped nearly 10% after the
company reported a worse-than-expected fourth-quarter loss and
sales that were weaker than analysts' estimates.
Shares of American Airlines Group Inc. (AAL) jumped 5% after
Standard & Poor's said late Monday that the airline will be
included in the S&P 500 index.
Apple Inc.(AAPL) could grab some of the spotlight after The Wall
Street Journal reported, citing sources, that the tech company is
in talks with programmers
(http://www.marketwatch.com/story/apple-in-talks-to-launch-online-tv-service-2015-03-16-221031419)
to launch an online television service based on a slim bundle of TV
networks.
Later on Tuesday, Oracle Corp.(ORCL) and Adobe Systems
Inc.(ADBE) will report quarterly results.
Read more about stock action in the Movers & Shakers column
(http://www.marketwatch.com/story/oracle-adobe-burlington-stores-earnings-in-focus-2015-03-17).
Other markets: Losses for European stocks dragged stock futures
lower, with the Stoxx Europe 600 down further after German ZEW
economic sentiment data fell short of expectations. In Asia, a
strong run continued for certain markets. The Nikkei 225 index
scored a new 15-year closing high
(http://www.marketwatch.com/story/japanese-stocks-close-at-fresh-15-year-high-after-boj-decision-2015-03-17)
after the Bank of Japan stood pat on interest rates, while Shanghai
Composite Index stocks closed above the 3,500 mark for the first
time in nearly seven years.
Oil prices
(http://www.marketwatch.com/story/us-oil-prices-under-pressure-after-hitting-six-year-low-2015-03-17-31031510)(CLJ5)
continued to weaken, with WTI contract falling below $43 a barrel,
while gold prices (GCJ5) also inched lower.
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