Filed under: Before the bell, Earnings reports, Deals, Ford Motor (F), General Motors (GM), Berkshire Hathaway (BRK.A), Market matters, Wrigley, (Wm) Jr (WWY), Economic data, Housing, Federal Reserve
Stocks futures were lower early Tuesday morning ahead of the Federal Reserve Open Committee two-day meeting set to start today. On Wednesday, Fed chairman Bernanke will announce the policy decided, and while most investors expect a quarter point rate cut, they also anticipate the Fed to announce a pause in the cuts following some inflationary pressures.
On Monday, stocks completed the day little change ahead of the Fed meeting and despite some massive deal news involving candy maker Mars and Warren Buffett’s Berkshire Hathaway (NYSE: BRK.A) buying chewing gum maker Wrigley (NYSE: WWY) for some $22 billion. Also, Kirk Kerkorian’s Tracinda Corp. announced its intention to purchase 20 million of Ford (NYSE: F)’s shares at $8.50 per share. With that, the Dow industrials ended the day down 20 points, or 0.16%, the S&P 500 fell 1 point, or 0.11%, while the Nasdaq rose 1 point, or 0.06%.
Not many economic releases this day. Still, already RealtyTrac reported that foreclosures soared 112% in the first quarter, compared to a year earlier. And still in the housing sector that doesn’t seem to be able to find a bottom yet, before the bell, the S&P/Case-Shiller home price index is due for release.
Also this day at 10 a.m. EDT, April consumer confidence index will be reported and economists are expecting the index will slide from the previous month. With higher food and energy prices, along with the troubles in the housing sector and the increasing troubles in the labor market, this is far from surprising.
In corporate news we’ve Visa (NYSE:V), which reported its first quarterly results since going public. While net income climbed 28% and earnings per share of 52 cents handily beat estimates of 45 cents per share, the stock is trading down over 5% in premarket trading as expectations were likely for even better numbers.
Meanwhile, Deutsche Bank AG (NYSE: DB) reported Tuesday its first quarterly loss since 2003 as it announced that it wrote down $4.2 billion during the first quarter. Shares are down 1.2% in premarket trading.
Finally, General Motors Corp. (NYSE: GM) announced it plans to cut one shift each at pickup truck and large sport utility car plants in Flint and Pontiac, Mich.; Janesville, Wis.; and Oshawa, Ontario, resulting in about 3,550 layoffs. GM stated it will make about 88,000 fewer pickups and 50,000 fewer huge SUVs this calendar year.
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