Futures little changed after HP, ahead of data
Phones hang from a trading terminal on the floor of the New York Stock Exchange, May 19, 2009. REUTERS/Shannon Stapleton
By Ryan Vlastelica
NEW YORK - U.S. stock index futures were little changed on Tuesday, following a strong advance in Monday's session and after Hewlett-Packard reported that quarterly profit matched its preliminary results.
* Investors have been closely watching the technology sector, which is generally considered one of the first to recover from recession.
* Hewlett-Packard Co <HPQ.N>, the computer and printer maker, said late Monday the economy remained challenging, but sees signs of recovery. The last Dow component to report also tripled its share repurchase program.
* Investors are awaiting the preliminary estimate of third-quarter gross domestic product growth, due at 8:30 a.m. EST, and November consumer sentiment data, due at 10:00 a.m. EST
* The day's earnings diary includes H.J. Heinz Co <HNZ.N>, Hormel Foods Corp <HRL.N> and Medtronic Inc <MDT.N>.
* S&P 500 futures rose 1.2 points and were modestly above fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures were up 2 points, while Nasdaq 100 futures were down 1.25 points.
* Also late Monday, Analog Devices Inc <ADI.N> and Brocade Communications Systems Inc <BRCD.O> reported quarterly results that beat expectations. Analog Devices also forecast higher profit margins.
* Hong Kong and China stocks sank Tuesday, with Shanghai composite index <.SSEC> off 3.5 percent, dragged down by banks.
* European stocks were down 0.1 percent in morning trade, led lower by banks. Miners such as Xstrata Plc <XTA.L> dropped along with metal prices.
* Kenneth Feinberg, the Obama administration's pay czar, is being pressed by federal officials to relax executive compensation restrictions at American International Group Inc <AIG.N> for 2010, the Wall Street Journal reported, citing sources.
* U.S. stocks snapped a three-day losing streak on Monday, as stronger-than-expected home sales data fueled optimism while a weaker dollar boosted commodity-linked stocks.