By Sara Sjolin, MarketWatch
SolarCity slides premarket after earnings
LONDON (MarketWatch) -- U.S. stocks were struggling to make
headway on Thursday, lower oil prices hit energy-related shares and
more uncertainty over a Greece bailout vied for investor attention
with the prospect of a more dovish Federal Reserve.
Investors have also been skittish ahead of a raft of quarterly
results and economic reports.
Futures for the Dow Jones Industrial Average (DJH5) had been
flipping between small gains and losses, but, at last check, were
off 18 points to 17,977, while those for the S&P 500 index
(SPH5) were off 1.8 points to 2,093.60. Futures for the Nasdaq-100
index (NDH5) stayed in positive territory -- barely -- with a
four-point gain to 4,390.
Markets had closed slightly lower on Wednesday, as investors
wrestled with interpreting minutes from the Federal Reserve's
latest meeting, which suggested the first rate hike might come
later than expected. The report showed the central bank is worried
about the low rate of inflation and slow pickup in wages,
emphasizing the importance of those data points.
Setback for Greece: Media reports on Thursday said Germany has
rejected Greece's request for a six-month loan extension agreement,
noting that their application is "not a substantial proposal for a
solution." The Greek government had formally requested a six-month
extension to its loan agreement, sending stocks higher in Athens.
But those gains have been pared and the Stoxx Europe 600 index was
flat and the euro (EURUSD)
Senior eurozone finance ministers are expected to meet later on
Thursday to discuss the request, but it isn't a given that they'll
grant Greece the extension. The country's antiausterity government
has distinguished between a mere loan agreement and a continuation
of the full bailout program, which it argues hurts the Greek
society and economy. The full Eurogroup of eurozone finance
ministers is scheduled to meet on Friday.
Data: Investors on Thursday might get more hints to whether
wages are likely to improve, with a reading on weekly jobless
claims due at 8:30 a.m. Eastern Time. Economists polled by
MarketWatch expect 290,000 Americans filed for unemployment
benefits last week, down from 304,000 the week before.
The Philadelphia Fed's manufacturing index for February is out
at 10 a.m. Eastern. Economists expect a slight rebound to 8 from
the sharp decline to 6.3 in January, compared with 24.3 in
December. The leading indicators readings is scheduled for 10 a.m.
Eastern as well.
Oil blues: Energy companies and oil-related funds were hit hard
in premarket trade, as crude-oil prices slid and hovered around $50
a barrel. The oil slump came after reports showed a whopping jump
in U.S. oil stockpiles, which underscored concerns of a supply
glut. Among oil-tracking indexes, the iPath Goldman Sachs Crude Oil
Total Return Index ETN (OIL) fell 3.4%, and the Velocity Shares 3X
Long Crude ETN (UWTI) slumped 8.8%.
ConocoPhillips dropped 1.4% ahead of the open, while Exxon Mobil
Corp. (XOM) shaved off 0.9%, and Halliburton Co. (HAL) lost
1.8%.
Earnings: It is a busy premarket lineup on the earnings front:
T-Mobile US Inc.(TMUS) said it swung to a profit in the fourth
quarter and reported a better-than-expected surge in revenue.
Shares were unchanged ahead of the bell.
Hormel Foods Corp.(HRL) beat Wall Street's earnings expectations
and raised its 2015 adjusted earnings guidance. Shares didn't move
premarket.
Wal-Mart Stores Inc.(WMT) is projected to report fourth-quarter
earnings of $1.54 a share, according to a consensus survey by
FactSet.
Priceline Group Inc.(PCLN) shares popped 6% after profit and
sales beat expectations.
DirecTV(DTV) is projected to post fourth-quarter earnings of
$1.39 a share.
Movers and shakers:SolarCity Corp.(SCTY) slumped 6.3% after the
solar-energy firm late Wednesday said it swung to a fourth-quarter
loss of 4 cents a share, from a profit of 28 cents a share a year
ago.
Counterpart SunEdison Inc.(SUNE) fell 4%. The solar-energy
company late Wednesday reported a smaller-than-expected
fourth-quarter loss.
BJ's Restaurants Inc.(BJRI) surged 10% after reporting a sharp
rise in profit for the fourth quarter.
Other markets: In Asia, Japanese stocks rose to a 15-year
intraday high, while the rest of Asia closed mixed. Chinese markets
were closed for the Lunar New Year celebrations.
Gold rallied (GCJ5) after the Federal Open Market Committee
minutes dashed hopes of a midyear rate hike.
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