American Superconductor shares drop; Monsanto earnings ahead
By Simon Kennedy, MarketWatch
LONDON (MarketWatch) — U.S. stock market futures pointed to a stronger start for Wall Street Wednesday ahead of the latest results from Monsanto Co. and as gold rallied to a new high.
Futures on the Dow Jones Industrial Average (DJM11 12,401, +74.00, +0.60%) rose 73 points to 12,400 and Standard & Poor’s 500 index futures (SPM11 1,335, +8.00, +0.60%) were up 9.10 points at 1,335.80.
Nasdaq 100 futures (NDM11 2,343, +19.50, +0.84%) rose 20.50 points to 2,343.75.
U.S. blue-chip stocks ended the day slightly lower on Tuesday, with the Dow Jones Industrial Average dropping around 6 points after the index hit its highest closing level in nearly three years on Monday.
Gold futures hit a new record high, with the June delivery contract (GCM11 1,459, +6.80, +0.47%) rising $8.80 to $1461.30 an ounce and helping to lift mining stocks in Europe and Asia. Silver was at a 31-year high. Read more on the move in gold and silver prices.
On the currency markets the euro rose 0.5% to $1.4307 ahead of an expected interest-rate hike from the European Central Bank on Thursday.
Oil futures were fairly steady, holding above $108 a barrel. Nymex crude for May delivery was down 14 cents at $108.20 a barrel in electronic trading.
Andrew Dalton, chief investment officer at Dalton Strategic Partnership, said the recent rise in oil prices isn’t enough to have a major impact on improving economic momentum.
“We remain convinced a relatively normal cyclical recovery is underway, that it will not be derailed easily and that the expansion is led by a sharp increase in corporate profitability,” Dalton said in a note to clients.
“As April unfolds, we will get a much clearer fix on first-quarter corporate earnings results. We expect to be positively surprised,” he added.
Among stocks to watch on Wednesday, shares in American Superconductor Corp. (AMSC 14.40, -10.48, -42.12%) slumped 38% in premarket trading after the group cut its earnings and revenue forecasts.
The renewable-energy-technology company said the shortfall is due to a refusal by Chinese wind-turbine maker Sinovel Wind Group Co. to accept certain contracted shipments.
Monsanto (MON 74.86, +1.26, +1.71%) is due to report its fiscal second-quarter results ahead of the opening bell. Analysts polled by FactSet are expecting the group to report a profit of $1.84 a share.
Immucor Inc. (BLUD 20.00, +0.02, +0.10%) is expected to report earnings of 27 cents a share for the latest quarter.
Elsewhere, Germany’s DAX 30 index rose 0.8% in midmorning trading, while Japan’s Nikkei Stock Average closed down 0.3%.
