US stock futures lose steam following Fed-fueled rally

October 9, 2014

New York (Oct 9)  U.S. stock-index futures declined on Thursday, following a global rally after the release of the Federal Reserve's dovish minutes from September.

"To say these minutes were dovish is, based on the equity market reaction, an understatement… These minutes serve to further shut down those calling for a hike in 2015's first four months," Dan Greenhaus, a strategist at BTIG, said in a morning note.

The yield on the 10-year Treasury yield dropped below 2.3 percent.

The government reported initial jobless claims of 287,000, just under the 294,000 estimate.

Apple gained in early New York trading after Carl Icahn called on the consumer-technology company to accelerate its share repurchases.

The minutes showed the Fed had cut its growth forecasts due to the higher dollar, with a number of Federal Open Market Committee (FOMC) members expressing concerns about global economic weakness.

PepsiCo was in focus, as it reported third-quarter results that beat estimates prior to the start of trading.

PepsiCo earnings beat Street, shares rise

Apple will also be eyed, as activist investor Carl Icahn has promised to send an open letter to CEO Tim Cook on Thursday, following the bankruptcy filing of Apple's sapphire display supplier, GT Advanced Technologies. On Wednesday, Apple shares gained on the official announcement of a 'special event' on October 16


Source: CNBC

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