Filed under: Before the bell, Earnings reports, Coca-Cola (KO), Exxon Mobil (XOM), Market matters, Economic data, Deere and Co (DE), Housing
U.S. stock futures were moderately higher this morning, indicating a similar open for U.S. stocks Wednesday. Before the opening bell, investors will turn their attention to earnings, including Coca Cola’s as well as to the government’s January retail sales report, which will likely show another drop.
On Tuesday, U.S. stocks climbed after billionaire investor Warren Buffett proposed a buyout of bond insurers’ municipal liabilities. The Dow industrials, which added as much as 220 points intraday, ended up 133 points, or 1.09%. The S&P 500 gained 9 points, or 0.73%, while the Nasdaq Composite finished flat.
At 8:30 a.m. EST, the Commerce Department will report January retail sales. Sales are expected to have dropped 0.3% in January, while sales ex-autos might have increased 0.2%. Through the say of retailers, investors will learn how consumers are faring. Since consumer spending accounts for more than two-thirds of U.S. economic activity and has been key in driving the economic expansion of current years, the market could react to any surprises that would change the general pictures individual retailers have painted when reporting weak January sales figures earlier this month.
At 10:00 a.m., December business inventories are due and after that weekly crude inventories.
Gasoline stocks likely rose the past week and oil prices rebounded slightly Wednesday after earlier falling below $93 despite. Traders seemed to be reacting more to the expected rise in U.S. supplies and falling global demand rather than Venezuela’s halt of crude sales to Exxon Mobil (NYSE: XOM).
Overseas, Asian market generally closed higher, but European stocks have fallen in morning trading.
Coca Cola (NYSE: KO) reported that fourth-quarter profit rose 79% on a double-digit increase in sales. Earnings climbed to $1.21 billion, or 52 cents a share. Excluding items, earnings were 58 cents a share for the quarter, beating analysts forecast, on average, of 55 cents a share for the quarter. Net operating revenue grew 24% to $7.33 billion from $5.93 billion in the fourth quarter of 2006.
Deere & Co. (NYSE: DE) posted a fiscal first-quarter profit rise of 54% on strong international sales. Profit rose to $369.1 million, or 83 cents per share, beating expectations of 78 cents per share. Revenue grew 18% to $5.1 billion, from $4.43 billion last year. Analysts expected $5.07 billion.
Also in the news are:
President Bush plans to sign on the economic package today
Mortgage research company RealtyTrac Inc. released data that showed that the Detroit area had the highest foreclosure rate in the nation last year, with several cities in California ranked close behind.
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