By Barbara Kollmeyer, MarketWatch
Asia stocks rally, while Europe's under pressure
A record-breaking run for Wall Street was showing signs of
hesitancy on Monday, with stock futures struggling to mark
direction in a day devoid of data, but looming large on the
corporate side with Apple Inc. results due later.
Futures for the Dow Jones Industrial Average (YMM5) dipped 12
points to 18,005, while those for the S&P 500 index (ESM5) were
up 0.3 point to 2,112. Futures for the Nasdaq-100 index (NQM5)
added 4.25 points to 4,533.75.
Better-than-expected earnings pushed the Nasdaq Composite (RIXF)
and S&P 500 index (SPX) to finish at all-time highs on Friday
(http://www.marketwatch.com/story/us-stocks-google-amazon-poised-to-lead-nasdaq-to-another-record-2015-04-24).
Those indexes gained 3.3% and 1.8%, respectively, over the
week.
Markets will be put to the test later with Apple (AAPL)
scheduled to report second-quarter earnings after the close.
Need to know: Apple's report poised to rip through this
vulnerable market
(http://www.marketwatch.com/story/apples-report-poised-to-ripple-through-this-vulnerable-market-2015-04-27)
"Judging by the moves in the tech giant last week, the market
believes the eight consecutive quarterly earnings beats will
continue. Expect a sizable increase to its previously announced
buyback," said Chris Weston, chief market strategist at IG, in a
note.
Strategist: Here's why tech stocks deserve to be loved
(http://www.marketwatch.com/story/strategist-heres-why-tech-stocks-deserve-to-be-loved-2015-04-24)
Analysts expect Apple to report fiscal second-quarter earnings
of $2.15 a share and revenue of $55.75 billion. Analysts have grown
increasingly bullish on Apple, with momentum building surrounding
its Apple Watch and better-than-expected sales of its iPhone 6 Plus
models. Read: What to watch for in Apple's earnings
(http://www.marketwatch.com/story/what-to-watch-for-in-apples-earnings-2015-04-23)
(http://www.marketwatch.com/story/what-to-watch-for-in-apples-earnings-2015-04-23)Also
read: Apple, energy, health care earnings to dominate week
(http://www.marketwatch.com/story/apple-energy-health-care-earnings-to-dominate-week-2015-04-26)
(http://www.marketwatch.com/story/what-to-watch-for-in-apples-earnings-2015-04-23)A
Fed meeting and data: The economic calendar heats up midweek, with
first-quarter gross domestic product on Wednesday. On that same
day, a Federal Open Market Committee announcement will come at the
conclusion of the central bank's two-day meeting.
Signe Roed-Frederiksen, senior analyst at Danske Bank, said one
bit of news that could come from the Fed is the emphasis that a
soft patch in U.S. growth has been caused by temporary factors.
"Market participants have adjusted their expectations of a first
fed funds rate hike from October to December/January and we believe
that the statement could reverse some of this move," said
Roed-Frederiksen. The analyst added that this week's data "should
also work in the direction of and upward shift in the expected path
for the fed funds rate."
Read: Will the economy roar back after a rocky start to the
year?
(http://www.marketwatch.com/story/will-economy-roar-back-after-rocky-start-to-the-year-2015-04-26)
Stocks to watch: Shares of iGATE Corp.(IGTE) could be active
after French computer services and tech group Capgemini said it
would buy its U.S. peer for $4 billion
(http://www.marketwatch.com/story/capgemini-buys-igate-for-4-billion-2015-04-27-2485842).
Shares of Marvell Technology Group Ltd.(MRVL) were off 5% in
thin premarket trade after the company warned Friday that revenue
will be weaker than expected
(http://www.marketwatch.com/story/marvell-technology-warns-revenue-will-be-weaker-2015-04-24).
U.S.-listed shares of Deutsche Bank AG(DB) were down 4% after
Germany's biggest bank reported over the weekend that its profit
halved on litigation costs
(http://www.marketwatch.com/story/deutsche-bank-profit-halves-on-litigation-costs-2015-04-27).
Other markets: Deutsche Bank did its part to weigh on Europe
stocks (http://www.marketwatch.com/storyno-meta-for-guid), also
pressed by continuing debt troubles out of Greece.
Read: Some Europe ministers suggest 'Plan B' if Greece talks
fail
(http://www.marketwatch.com/story/some-europe-ministers-suggest-plan-b-if-greece-talks-fail-2015-04-27)
(http://www.marketwatch.com/story/some-europe-ministers-suggest-plan-b-if-greece-talks-fail-2015-04-27)The
Hong Kong Hang Seng Index and Shanghai Composite Index stocks both
rallied on Monday, hitting new seven-year highs separately, led by
oil and shipping stocks that surged on reports about possible
mergers between several of China's largest state-owned firms.
(http://www.marketwatch.com/story/some-europe-ministers-suggest-plan-b-if-greece-talks-fail-2015-04-27)Oil
prices
(http://www.marketwatch.com/story/oil-futures-edge-lower-as-dollar-creeps-higher-2015-04-27)(CLM5)
dropped and gold (GCM5) edged higher, while the dollar (DXY) firmed
up.
Subscribe to WSJ: http://online.wsj.com?mod=djnwires