Wall Street tilts toward flat open on worries about corporate earnings
NEW YORK -- Wall Street was poised to open little changed Wednesday after United Parcel Service Inc. lowered its first-quarter forecast, adding to investor anxiety about corporate earnings.
The world's largest shipping carrier cited a weaker economy and higher fuel costs when it cut its profit projections. Investors earlier this week received reports from aluminum producer Alcoa Inc. and chip-maker Advanced Micro Devices Inc. that raised concerns about first-quarter results overall. That and continuing uneasiness about the economy sent stocks lower on Tuesday.
A report that mortgage applications rose last week had little impact on trading; investors were also awaiting data to be released later in the morning on wholesale prices. There are also speeches scheduled from Federal Reserve Chairman Ben Bernanke, Fed Governor Randall Kroszner, and Dallas Fed President Richard Fisher.
Dow Jones industrial average futures were unchanged at 12,610. Standard & Poor's 500 index futures rose 0.40, or 0.03 percent, to 1,371.40. Nasdaq 100 index futures added 6.75, or 0.36 percent, to 1,861.50.
Bond prices edged higher. The yield on the benchmark 10-year Treasury note, which moves opposite its price, fell to 3.55 percent from 3.56 percent late Wednesday.
Government data scheduled for release Wednesday is expected to show crude oil inventories rose last week for the second straight period. Ahead of that report, light, sweet crude fell 47 cents to $108.03 a barrel in premarket electronic trading on the New York Mercantile Exchange.
Gold was lower, and the dollar was mixed against other major currencies.
The Mortgage Bankers Association said mortgage application volume rose 5.4 percent during the week ending April 4. Applications for the week ended April 4 were up 10.9 percent from the same week a year ago.
Economists expect a Commerce Department report to show wholesale sales and inventories increased at a slower pace in February as distributors reduced stockpiles after slow holiday sales.
Among companies being watched, AMR Inc.'s American Airlines is expected to cancel more flights Wednesday as it attempts to comply with federal rules about wiring on about 300 of its planes. Airline officials said they canceled about 500 flights Tuesday but didn't know how many would be scrubbed Wednesday.
Overseas, Japan's Nikkei stock average fell 1.05 percent. Britain's FTSE 100 shed 0.41 percent, Germany's DAX index declined 0.72 percent, and France's CAC-40 rose 0.16 percent.