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US STOCKS-Apple drags on Nasdaq after revenue miss
July 25, 2012 / 11:34 AM / 5 years ago

US STOCKS-Apple drags on Nasdaq after revenue miss

* Apple’s revenue miss points to sluggish global economy

* Fed moves closer to stimulus, WSJ reports

* Futures: Dow up 53 pts; S&P up 5.8 pts; Nasdaq off 9.25 pt

By Edward Krudy

NEW YORK, July 25 (Reuters) - Nasdaq index futures fell on Wednesday after Apple became the latest high-profile company to miss earnings forecasts, though the broader market gained on a report that said the Federal Reserve was moving closer toward further stimulus for the sluggish economy.

* Apple earnings fell short of Wall Street’s expectations as the European economy sagged and consumers held off buying its flagship iPhone ahead of a new version expected in the fall. Shares dropped 4.9 percent in premarket trading.

* Federal Reserve officials are moving closer to taking more steps to aid the flagging economy, the Wall Street Journal reported late on Tuesday, helping to lift stocks off their lows of the day. The Fed holds its next rate-setting meeting next week.

“The willingness of the Fed to continue to keep rates at a very low point does put a bottom to the stock market and it’s that bottom that makes people confident, particularly traders, to continue to come in on these selloffs because they feel there isn’t much lower to go,” said Rick Meckler, president of investment firm LibertyView Capital Management in New York.

* S&P 500 futures rose 6.1 points and were 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 rose 53 points and Nasdaq 100 futures were off 9.25 points.

* Major companies announcing results include Ford Motor , Visa, PepsiCo, Caterpillar, Eli Lilly, WellPoint, Boeing Co and Bristol-Myers Squibb.

* The Commerce Department releases new home sales for June at 1400 GMT. Economists forecast a total of 370,000 annualized units, compared with 369,000 in May.

* The Mortgage Bankers Association releases the Weekly Mortgage Market Index for the week ended July 20 at 1100 GMT. The index read 935.4 and the refinancing index was 5,314.4 in the previous week.

* European shares inched up after early losses on Wednesday as European Central Bank Governing Council member Ewald Nowotny said there were arguments for giving Europe’s permanent rescue fund a banking license.

* Wall Street stocks fell on Tuesday, hit by signs the euro zone crisis is worsening and evidence that Europe’s slowdown is hurting U.S. companies, including bellwether UPS. (Editing by Bernadette Baum)

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