Wall Street Fed-Induced Rally Fading Away

Washington (Mar 19)  The optimisms generated by the accommodative stance of the Federal Reserve may slowly fade away, as indicated by the major US index futures, which point to a lower opening on Thursday. The mood across the Atlantic is also fidgety after Asian stocks drove the Fed rally. Sentiment in the domestic markets may also hinge on reaction to economic data on jobless claims and regional manufacturing activity.

As of  6:15 am ET  , the Dow futures are slipping 3 points, the S&P 500 Index are retreating 20 points and the Nasdaq Composite futures are declining 1.75 points.

Fed boost lifted US stocks on Wednesday, sending the major averages notably higher.

On the economic front, the  Labor Department  is scheduled to release its jobless claims report for the week ended  March 14th  at  8:30 am ET  . The consensus estimate calls for an increase in claims to 293,000 from 289,000 in the previous week.  The Commerce Department  is set to release its current account balance data for the fourth quarter at  8:30 am ET  . Economists expect the deficit to widen to  USD105 billion  from  USD100.3 billion  . Federal Reserve Governor  Daniel Tarullo  is due to testify before the  Senate Banking Committee  on banking regulation with FDIC Chair  Martin Gruenberg  at  10 am ET  .

The Philadelphia Federal Reserve is scheduled to release the results of its business outlook survey at  10 am ET  . Economists expect the index to increase to 7 in March.

At  10 am ET  , the Conference Board is due to release its leading economic indicators index for February. The consensus estimate calls for a 0.3% month-over-month increase for the month. The Treasury is set to make announcements concerning the auction of 2-year, 5-year and 7-year notes at  1 pm ET  .

In corporate news,  Cintas  (CTAS) reported better than expected third quarter earnings, while its revenues were in line. The company raised its 2015 adjusted earnings guidance, while narrowing its revenue guidance.  Jabil Circuit's  (JBL) second quarter results exceeded estimates and issued guidance for 2015.

 Williams-Sonoma  (WSM) reported in line fourth quarter earnings, while its revenues are shy of estimates. The guidance for the first quarter and the full year was weak.  CLARCOR  (CLC) reported in line first quarter earnings, while its revenues were shy of estimates. The company's 2015 guidance was positive.

 Herman Miller  (MLHR) reported better than expected third quarter results, while its fourth quarter earnings per share guidance was below estimate. Guess (GES) reported fourth quarter earnings that were ahead of expectations, while its revenues were shy of estimates. The guidance for the full year was weak.

 Starbucks  (SBUX) announced an agreement with Chinese food and beverage producer  Tingyi  for expanding the distribution of  Starbucks  ready-to-drink products throughout mainland  China  .

 Nike  (NKE) and  Ctrip.com  (CTRP) are among the companies due to release their quarterly results after the close of trading.

The Fed's dovish stance fueled a rally across the Asian markets, with the Japanese market bucking the uptrend, as the yen strengthened following the Fed decision.

 Australia's  All Ordinaries opened higher and advanced sharply in early trading and steadily thereafter. The index ended up 104.50 points or 1.80% at 5,913.  China's  Shanghai Composite Index ended 4.97 points or 0.14% higher at 3,582 and  Hong Kong's   Hang Seng Index  closed at 3,582, up 4.97 points or 0.14%. Meanwhile, the Japanese Nikkei 225 average ended down 67.92 points or 0.35% at 19l, 477.

A majority of stocks declined in the session, with export and financial stocks leading the slide. On the other hand, real estate stocks gained some ground.

On the economic front, a report released by  Statistics New Zealand  showed that the nation's economy expanded 0.8% sequentially in the third quarter, in line with estimates. However, the growth represented a slowdown from the 1% expansion in the previous quarter.

 Japan's   Ministry of Economy, Trade and Industry  reported that its index measuring all industry activity in  Japan  rose 1.9% month-over-month in January, reversing the 0.1% drop in December. Industrial output and tertiary activity indexes rose 3.8% and 1.9%, respectively.

European stocks opened on a mixed note, with the French and the German markets opening lower, while the  UK  market opened higher, as the budget optimism and upbeat economic outlook offered support. With the averages of the former two markets are seeing some volatility, the markets in the region are currently mixed.

In corporate news,  Germany's  Heidelberg said it expects 2015 year earnings and sales to increase due to strength in its core market and also announced a 25% increase in its dividend. However, full year declined year-over-year.  UK's  Next reported higher profits and sales in 2014 and raised its dividend but was cautious on its outlook.  Fraport  confirmed its guidance for 2-3% increase in passenger traffic.

On the economic front, the  Swiss National Bank  left its monetary policy unchanged as widely expected by economists. The SNB maintained the target range for the three-month libor unchanged at between -1.25% and -0.25%. The interest rate on sight deposits with the SNB remained at -0.75% and the exemption thresholds remain unchanged, the bank said in a statement.

Source: AllianceNews