MARKET SNAPSHOT: S&P 500 Set To Slip, Hurt By Chipotle And AMD's Earnings-driven Drops

By Victor Reklaitis, MarketWatch Features Dow Jones Newswires

Dow industrials on pace to hold near record close

Continue Reading Below

U.S. stock futures on Wednesday largely pointed to a dip at the open, weighed down by selloffs for Chipotle Mexican Grill Inc. and Advanced Micro Devices Inc. after their earnings reports.

What are the main benchmarks doing?

S&P 500 futures inched lower by 3.55 points, or 0.1%, to 2,563.75, while Dow Jones Industrial Average futures were flat at 23,403.00. Nasdaq-100 futures fell by 10.50 points, or 0.2%, to 6,069.00.

On Tuesday, the S&P 500 and Nasdaq Composite both closed 0.2% higher, while the Dow tacked on 0.7% and scored its 54th record close (http://www.marketwatch.com/story/sp-500-dow-on-pace-for-small-gains-but-whirlpool-whacked-after-earnings-2017-10-24) of the year.

What are other assets doing?

Continue Reading Below

The dollar (http://www.marketwatch.com/story/dollar-largely-gains-with-aussie-whacked-by-soft-inflation-figure-2017-10-25) was little changed after giving up an earlier gain that analysts had pinned on bets that the Federal Reserve's next boss either will pick up the pace with interest-rate hikes or stay the course.

European stocks (http://www.marketwatch.com/story/gucci-parent-helps-lift-luxury-stocks-but-european-markets-stay-in-their-rut-2017-10-25) mostly rose, while Asian markets largely closed higher, though Japan's Nikkei benchmark halted a 16-session winning streak (http://www.marketwatch.com/story/nikkeis-16-session-winning-streak-is-in-peril-as-japan-stocks-pause-at-multiyear-heights-2017-10-24). Gold futures and oil futures (http://www.marketwatch.com/story/oil-prices-ease-as-investors-wait-to-see-if-crude-stockpiles-decline-2017-10-25) lost ground.

Read:How oil is escaping from 'purgatory' as supply glut turns to supply concern (http://www.marketwatch.com/story/how-oil-is-escaping-from-purgatory-as-supply-glut-turns-to-supply-concern-2017-10-25)

What could drive markets?

September reports on U.S. durable goods orders and new home sales are due at 8:30 a.m. Eastern Time and 10 a.m. Eastern, respectively. Economists polled by MarketWatch expect 0.7% growth for durables and 555,000 homes sold.

Check out:MarketWatch's Economic Calendar (http://www.marketwatch.com/economy-politics/calendars/economic)

No Fed officials are scheduled to speak, but investors are bracing for President Donald Trump's pick to lead the U.S. central bank. Trump on Tuesday asked Senate Republicans who should be the next Fed boss, and Stanford University economist John Taylor reportedly beat out Fed Gov. Jerome Powell (http://www.marketwatch.com/story/trump-asked-senate-republicans-who-should-be-next-fed-chair-and-john-taylor-reportedly-was-the-winner-2017-10-24). The president is expected to announce his choice before starting a trip to Asia (http://www.marketwatch.com/story/trump-today-president-says-hes-very-very-close-to-naming-pick-for-fed-chief-2017-10-23) on Nov. 3.

Read:Trump indicates Taylor and Powell could be named together to top Fed roles (http://www.marketwatch.com/story/trump-indicates-taylor-and-powell-could-be-named-together-to-top-fed-roles-2017-10-20)

And see:Who's the next Fed boss? Brace for a 'Trumpian surprise' (http://www.marketwatch.com/story/whos-the-next-fed-boss-brace-for-a-trumpian-surprise-2017-10-20)

What are analysts saying?

"Given the options that President Trump seems to have in front of him as the next Fed chairman, the dollar has little to fear," said Konstantinos Anthis, an ADS Securities analyst, in a note.

"Both Powell and Taylor are in favor of a tighter monetary policy, albeit at different degrees, but the consensus seems to be that the Fed will continue down the path of more rate hikes in 2018."

Which stocks look like key movers?

Burrito chain Chipotle(CMG) and chip maker AMD(AMD) were the S&P 500's two biggest premarket losers, with their stocks falling 10.3% and 9.9%, respectively.

Chipotle posted weaker-than-expected earnings (http://www.marketwatch.com/story/chipotle-stock-drops-after-hours-on-third-quarter-earnings-miss-2017-10-24) late Tuesday, while AMD's results beat expectations (http://www.marketwatch.com/story/amd-shares-decline-even-after-earnings-beat-2017-10-24), but investors seemed more concerned about the company's outlook (http://www.marketwatch.com/story/amd-stock-still-volatile-despite-fresh-stability-in-chip-makers-business-2017-10-24), which may not have been as strong as hoped.

On the upside, Akamai Technologies Inc.(AKAM) rose 8.8% ahead of the open after the provider of tech services posted better-than-anticipated results late Tuesday.

Shares in Visa Inc.(V) rose 1% following its stronger-than-expected results (http://www.marketwatch.com/story/visas-stock-jumps-after-profit-and-sales-rise-above-expectations-2017-10-25), while drugstore operator Walgreens Boots Alliance Inc. (WBA) and aerospace giant Northrop Grumman Corp.(NOC) both gained about 4% after their earnings beat forecasts.

Shares in Coca-Cola Co.(KO) dipped 0.4% in premarket action even as the beverage company's earnings topped expectations (http://www.marketwatch.com/story/coca-cola-shares-rise-after-earnings-and-revenue-beat-2017-10-25).

(END) Dow Jones Newswires

October 25, 2017 07:33 ET (11:33 GMT)