Peter Schacknow, Senior Producer, CNBC Breaking News Desk
Worries over political and financial turmoil continue to weigh on Wall Street, with the S&P 500 and Nasdaq coming off their lowest closes in two months and the Dow riding its first six-day losing streak since August. The Dow is also just a few points from posting its biggest weekly drop of 2012.
Today marks a busy morning on the economic calendar, with three reports due out at 8:30am ET. Initial jobless claims are expected to come in at 370,000 for the week ending May 5, up 5,000 from the prior week. The March U.S. trade deficit is seen rising to $50 billion from the February reading of $46 billion. And April import prices should register a 0.2 percent rise, according to consensus forecasts, after March’s increase of 1.3 percent.
April federal budget figures are due out at 2pm ET, with the Treasury seen reporting a deficit of $30 billion following the March shortfall of $40.4 billion.
The Energy Department issues its weekly report on natural gas inventories at 10:30am ET, and the Treasury will announce the results of its $16 billion auction of 30-year bonds shortly after 1pm ET.
The Band of England is expected to keep its key interest rate unchanged at 0.5 percent when it issues its latest statement at 7am ET, but it’s also expected to announce the end of its asset buying program in order to ease inflation pressures.
Retailer Kohl’s (KSS) is one of the few companies of note set to report earnings this morning, while Express Scripts (ESRX), and software maker CA (CA) are among the companies on the after-the-bell earnings list.
Dow component Cisco Systems (CSCO) leads our list of stocks to watch, with fiscal third quarter earnings coming in at $0.48 per share, one cent above forecasts. Revenue was in line with estimates, but the company’s fourth quarter earnings and revenue forecast fall short of Street estimates.
News Corp. (NWSA) reported fiscal third quarter earnings of $0.37 per share, six cents above estimates, with revenues also above Street forecasts. The media giant also announced a $5 billion stock buyback program. News Corp’s profits were helped by strong performances in its cable network and movie studio units.
Activision Blizzard (ATVI) earned $0.06 per share for the first quarter, two cents above estimates, and its revenue of $587 million was above consensus forecasts of $556 million. The videogame maker also raised its earnings outlook, and also reported that subscribers to its largest internet game, “World of Warcraft” remained steady from the prior quarter. Analysts had been concerned about a drop in subscriber numbers in prior quarters.
Priceline.com (PCLN) beat Street estimates by reporting first quarter profit of $4.28 per share, versus estimates of $3.95. That performance was helped by a jump in travel bookings, but the company did caution that growth will slow down in the current quarter.
Monster Beverage (MNST) earned $0.41 per share for the first quarter, three cents above estimates, with revenue also above forecasts. The beverage maker also reported a one percentage point increase in profit margins over a year earlier to 53.1 percent, driven by higher demand for its energy drinks.
MEMC Electronic Materials (MEMC) lost $0.26 per share during the first quarter, wider than the $0.15 loss Street analysts had been expecting. The maker of semiconductor wafers is suffering the effects of both soft demand and lower pricing in its key markets.
SunTrust Banks (STI) is in talks to sell its asset management unit RidgeWorth Investments, according to Reuters. SunTrust had unsuccessfully tried to sell the unit two years ago.
Costco Wholesale (COST) is raising its quarterly dividend by 15 percent to $0.275 per share from $0.24.
Sony (SNE) says it expects to return to profitability in the current fiscal year, as its consumer electronics and components businesses recover. Sony has posted losses for four straight years.
Micron Technology (MU) says it’s in talks to acquire bankrupt Japanese chipmaker Elpida, confirming what’s been speculated for weeks. Reuters is reporting that Micron’s current offer is about $2.5 billion.
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