U.S. stock futures gain as Macy's jumps; Dow adds 0.1%

Forex Pros – U.S. stock futures pointed to a slightly higher open on Wednesday, as investors digested a slew of mixed corporate earnings results and as shares in department store chain Macy’s surged to a one-year high ahead of the open.   

Dow Jones Industrial Average futures pointed a modest gain of 0.1%, the S&P 500 futures added 0.06%, while Nasdaq 100 futures edged 0.05% higher. 

Stock index futures trimmed gains after data showed that the U.S. trade deficit widened more-than-expected in March, climbing to USD48.2 billion, the largest deficit since June 2010. Analysts had expected the trade deficit to widen to USD47.0 billion.

The second largest U.S. department store chain Macy’s saw shares jump 6.8% in pre-market trade after it reported an 82% increase in first quarter profit. The company boosted its full-year earnings outlook and raised its dividend payout. 

Shares in entertainment data and technology company Rovi Corporation surged 13.1% after it lifted its full-year earnings outlook. For the current quarter, revenue rose 12% to USD195.4 million, surpassing expectations for revenue of USD161.5 million.  

Johnson & Johnson saw shares climb 1.1% after Goldman Sachs recommended buying the stock. The investment bank projected that the company’s earnings will grow at a rate of 9% to 10% over the next three years. 

On the downside, Walt Disney Company saw shares slump 3.3% after it reported second fiscal quarter earnings that fell far short of market expectations. Net earnings in the quarter declined 1% from a year earlier, as shrinking box-office receipts and a significant decline in home video sales weighed on results.  

Rare-earth miner Molycorp saw shares tumble 3.5% after the company's first quarter net income and revenue both fell short of analysts' estimates.

Shares in American International Group slid 1.3% as the bailed-out insurer and the U.S. Treasury planned to sell a total of 300 million AIG shares on Wednesday.

Other stocks in focus included the world’s largest maker of computer-networking equipment Cisco, as well as internet security firm Symantec, which were both slated to release earnings results after Wednesday’s closing bell.

Across the Atlantic, European stock markets advanced, driven by strong earnings from luxury-goods companies Hermes International and Bulgari. The EURO STOXX 50 climbed 0.5%, France’s CAC 40 gained 0.35%, Germany's DAX climbed 0.5%, while Britain's FTSE 100 edged 0.1% higher. 

During the Asian trading session, Japan’s Nikkei 225 Index closed 0.46% higher as a weaker yen boosted Japanese exporters.

Earlier Wednesday, official data showed that China's annual rate of inflation in April rose 5.3%, down slightly from 5.4% in March, but still surpassing expectations for a 5.2% increase.





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