Wall St futures dip, Yahoo eclipses inflation data
LONDON (Reuters) - U.S. stock futures fell on Wednesday, suggesting Wall Street could pare some gains later in the day as disappointing results from Web search firm Yahoo Inc. (YHOO.O) may weigh on the broader market.
June Dow Jones futures DJM7 were 0.2 percent lower, while S&P futures SPM7 declined 0.2 percent and Nasdaq 100 futures NDM7 dropped 0.4 percent.
The weekly gauge of U.S. mortgage applications could come under closer scrutiny as investors worry about the drag the housing slowdown exerts on the economy, while regional business activity data could also have an impact.
Results from Motorola Inc. (MOT.N). JP Morgan Chase (JPM.N) and eBay Inc. (EBAY.O) will likely be the major driver.
A government report on Tuesday that showed inflation accelerated at a much tamer pace than expected in March helped propel the Dow Jones Industrial average .DJI to near-record highs, so analysts said the market could well pare gains this session.
"Markets have had a bit of a good run, first of all, and I think people want to take a little bit off the table," said Peter Dixon, a strategist at Commerzbank.
U.S. stock futures suggested blue chips would open modestly lower, while technology stocks could well extend Monday's dip in the Nasdaq Composite index .IXIC, especially after Yahoo reported an 11 percent fall in first-quarter profits and missed Wall Street estimates.
The fall in the dollar to fresh two-year lows against the euro and near 15-year lows against sterling took a backseat to the upcoming release of earnings and economic data.
"You only need one big name to come in and post good numbers and you'll basically wipe out some of that negative sentiment," said Dixon.
"It has to be said, Yahoo and Google ... are names people pay attention to, but in terms of their contribution to the overall wellbeing of corporate America, people are often looking to more solid industrials and blue-chips."
After the closing bell, Yahoo shares fell almost 5 percent to $30.50 and in European trading, the company's stock was already down over 8 percent at 21.52 euros.
Google shares (GOOG.O) also fell after the closing bell.
The tech sector may still get a lift if Motorola earnings meet or beat estimates.
International Business Machines Corp (IBM.N), the world's largest technology services company and top chipmaker Intel (INTC.O) both delivered earnings that met Wall Street estimates, which could provide the market with additional support.
Companies reporting later in the day also include United Technologies Corp (UTX.N), newly divested Kraft Foods Inc (KFT.N) and Illinois Tool Works (ITW.N). Continued...
