US stocks set to open flat on Amazon, GM results

NEW YORK - US stock futures indicated a flat market open on Wednesday after Inc. cut its profit outlook, darkening the outlook for tech and consumer stocks, while General Motors Corp. may help blue chips after reporting higher-than-expected operating profit.

By (Reuters)

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Published: Wed 26 Jul 2006, 8:28 PM

Last updated: Sat 4 Apr 2015, 1:09 PM

Shares of GM, the world’s largest automaker, spiked more than 4 percent on the Inet electronic brokerage before the opening bell, boosting Dow Jones industrial average futures. For details, see ID:nN26285884.

But Internet auctioneer Amazon posted a sharp drop in profit and cut its full-year earnings outlook after the closing bell on Tuesday and a late rally by the Nasdaq.

Several technology-related shares also fell after the closing bell on disappointing earnings reports, including chip maker Xilinx Inc., Corning Inc. and Plantronics Inc.

“Amazon shows consumer spending is moderating, and that has a major impact on economic activity because consumer spending makes up about 70 percent of the economy. The GM news is very company-specific and not indicative of a broader economic trend,” said Peter Boockvar, equity strategist at Miller Tabak & Co. in New York.

“After two up days, the market is going to have a hard time bringing that to a three-day winning streak.”

S&P 500 futures were up 0.3 point, below fair value, a mathematical formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract.

Dow Jones industrial average futures rose 3 points, and Nasdaq 100 futures rose 2.75 points and were below fair value.

Amazon shares fell 17.7 percent to $27.65 on the Inet electronic brokerage system before the opening bell. Corning, maker of liquid crystal display components, lost 7.6 percent to $20 also on Inet.

Headset-maker Plantronics fell 12.1 percent to $17.17 after the closing bell on Tuesday and Xilinx lost 7.4 percent to $18.15 on Monday after the closing bell, also on Inet

Shares of Boeing Co. fell 1.2 percent to $82.76 on Inet after the jet maker and Dow component reported a loss in-line with analysts estimates. Boeing’s report followed two straight days of gains for the stock ID:nN26292013.

Shares of oil company ConocoPhillips could help the market after it reported earnings that beat estimates. Conoco stock was up 1.1 percent to $68.20 on Inet.

The Federal Reserve will release its beige book of regional economic conditions at 2 p.m. (1800 GMT), which investors will scrutinize for any signs of whether Fed policy makers will end their monetary-tightening campaign soon.

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