Stocks tilt toward lower open after disappointing reports
NEW YORK -- Stocks were poised to open lower Tuesday, after downbeat corporate reports from aluminum company Alcoa Inc. and chip maker Advanced Micro Devices Inc. led off the first-quarter earnings season.
Alcoa, the world's third-largest aluminum producer, said its first-quarter profit dropped by more than half due to higher costs and a weakening U.S. dollar. The per-share profit of 44 cents was below the average analyst estimate of 48 cents.
Investors were also underwhelmed by news from the chip making sector.
Sales at Advanced Micro Devices for the three months ended March 29 fell 15 percent from the same period a year ago, due to product delays and tough competition from Intel Corp. AMD's $1.5 billion sales figure was below the average analyst estimate of $1.61 billion, and the company said it plans to eliminate 10 percent of its work force.
Meanwhile, Novellus Systems Inc., another semiconductor maker, lowered its estimate of its first-quarter earnings to a range of 15 cents to 17 cents a share from its previous expectation of 21 cents to 24 cents.
The dreary company reports Tuesday arrived ahead of the release of minutes from the Federal Reserve's meeting March 18, when it lowered interest rates by three-quarters of a point to 2.25 percent. Investors are also awaiting a National Association of Realtors report on pending home sales in February.
Dow Jones industrial average futures fell 44, or 0.35 percent, to 12,558. Standard & Poor's 500 index futures declined 5.20, or 0.38 percent, to 1,367.00. Nasdaq 100 index futures decreased 8.00, or 0.43 percent, to 1,857.75.
On Monday, the major indexes finished narrowly mixed ahead of earnings releases after the bell.
Bond prices dipppercent from 3.53 percent late Wednesday.
Light, sweet crude fell 40 cents to $108.69 a barrel in premarket electronic trading on the New York Mercantile Exchange.
Gold prices fell, while the dollar was mixed against other major currencies.
Overseas, Japan's Nikkei stock average fell 1.49 percent. Britain's FTSE 100 slid 0.90 percent, Germany's DAX index lost 1.21 percent, and France's CAC-40 dropped 1.08 percent.