BEFORE THE BELL:US Stock Futures Point Lower Again

By Steve Goldstein

U.S. stock futures on Wednesday pointed to a second straight day of declines, ahead of a slate of earnings from Wells Fargo and Morgan Stanley and an assessment of the economy from the Federal Reserve.

S&P 500 futures fell 5.7 points to 1,083.70 and Nasdaq 100 futures dropped 8.5 points to 1,749.70. Futures on the Dow Jones Industrial Average fell 47 points.

U.S. stocks on Tuesday returned a portion of the prior day's advance, with the Dow Jones Industrial Average down 51 points, the S&P 500 off 7 points and the Nasdaq Composite down 13 points. Disappointing economic data offset mostly well-received earnings updates from the likes of Caterpillar and Apple.

"Markets are being pulled between generally better corporate results, and occasional disappointments on the macro economic data. This is not perhaps unexpected, if the economic profile resembles the Nike 'swoosh' more than the classic V," said Paul Donovan, senior economist at UBS.

Ian Shepherdson, chief U.S. economist at High Frequency Economics, said the U.S. equity rally from the lows of March can continue. He sees nominal GDP rising and unit labor costs declining next year.



"If we're right, the spread between sales and cost growth next year should be nearly six percentage points, which is consistent with S&P earnings rising by around 25%," he said. That would put the S&P 500 on a forward earnings multiple of about 14.2%.

"On that basis, it is hard to argue that U.S. equities are overvalued."

Wednesday's focus will turn to the Beige Book, the Fed's release of economic anecdotes from across the country at 2 p.m. Eastern.

Two more speakers from the Fed will take to the podium, and weekly energy inventories data will be released as oil futures traded above $78 a barrel.

The dollar was up against most rivals save the British pound, as minutes from the last Bank of England meeting showed unanimity in keeping unchanged its money-printing quantitative easing program.

Wednesday's wave of results include Altria (MO), Wells Fargo (WFC), Morgan Stanley (MS), Boeing (BA), and after the close, eBay (EBAY).

Yahoo (YHOO) rose 4% in Frankfurt after it said its profit more than tripled as it clamped down on costs.

Deutsche Bank (DB) declined in Frankfurt after forecasting a third-quarter profit well ahead of estimates due to tax gains.

Overseas, the Hang Seng slipped 0.3% as China Mobile dropped after lower-than-forecast profit, and the pan-European Dow Jones Stoxx 600 weakened 0.8%.

-Steve Goldstein; 20 7842 9424; AskNewswires@dowjones.com







Among the companies whose shares are expected to actively trade in Wednesday's session are SanDisk Corp. (SNDK), Yahoo Inc. (YHOO) and SLM Corp. (SLM).



SanDisk swung to a third-quarter profit on surprisingly strong product sales and margins. Shares jumped 9.6% to $23.54 in after-hours trading as the flash-memory maker said "improving industry fundamentals" are likely to mean more growth in the fourth quarter and next year.



Yahoo's third-quarter earnings more than tripled despite a double-digit revenue decline, as the company reported smaller unusual charges. Shares rose 5.2% to $18.07 after hours.



SLM swung to a third-quarter profit as interest-rate spreads returned to more normal levels. Shares of SLM surged 7.8% to $9.59 in late trading.



Cree Inc.'s (CREE) fiscal first-quarter profit more than tripled on surging margins and revenue as the semiconductor and light-emitting-diode, or LED, lighting company easily topped estimates. The company also projected fiscal second-quarter results above analyst's expectations. Shares increased 3.7% to $42.67 after hours.



Gilead Sciences Inc.'s (GILD) third-quarter profit soared 36% on sales growth in all its product lines as results beat analysts' expectations. The company, which dominates the HIV treatment market, continued to post solid growth for those treatments despite the difficult economy. Shares slipped 2.2% to $45.10 in after-hours trading.



Seagate Technology Inc. (STX) posted its first profit in a year as its fiscal first-quarter earnings tripled on higher margins. The computer disk-drive maker also forecast fourth-quarter revenue generally higher than Wall Street expected. Shares fell 2.6% to $15.15 in after-hours trading.



Intuitive Surgical Inc. (ISRG) posted a 12% increase in third-quarter earnings, boosted by higher revenue and a gain from deferred revenue, offsetting lower margins. Shares fell 6.5% to $250.14 in late trading.



Tupperware Brands Corp.'s (TUP) third-quarter profit grew 18% on higher margins, though its revenue was hurt by foreign-currency exchange rates. Shares jumped 4.5% to $46 in after-hours trading as the personal-products maker's results topped its forecast and it raised guidance above analysts' estimates.



STMicroelectronics NV's (STM, STM.MI) third-quarter loss--its seventh in a row--narrowed despite a double-digit revenue decline on smaller one-time items. Shares rose 3.7% to $10.10 after hours as revenue came in just above the high end of the company's expectations, although the loss was bigger than Wall Street expected.



Stryker Corp.'s (SYK) third-quarter earnings fell 16% on restructuring charges, while revenue was flat. The company also shaved the top half of its full-year guidance. But shares gained 3.4% to $46.80 in after-hours trading.



NuVasive Inc. (NUVA) swung to a third-quarter profit as the medical-device company posted surging revenue and fewer charges. The company again boosted its 2009 guidance, but shares fell 3.9% to $42.11 in late trading.



Polycom Inc.'s (PLCM) third-quarter earnings fell 24% on lower sales and margins, but the maker of audio and data conferencing products pointed to sequential revenue growth and a sharp increase in orders from the second quarter. Shares fell 5.2% to $25 after hours.



South Financial Group Inc. (TSFG) estimated its third-quarter loss widened sharply as the company recorded big credit provisions and a tax-related write-down. Shares fell 17% to $1.19 in after-hours trading.



Watch List:



Amylin Pharmaceuticals Inc.'s (AMLN) third-quarter loss narrowed more than expected on cost-cutting, while revenue fell short of analysts' expectations.



C.H. Robinson Worldwide Inc.'s (CHRW) third-quarter profit climbed 2% as the trucking and logistics company again reported higher margins, offsetting sliding revenue.



Sonic Corp.'s (SONC) fiscal fourth-quarter profit dropped 17%, hurt by lagging sales at partner drive-ins, though results still topped Wall Street estimates.



Sun Microsystems Inc. (JAVA) said it plans to cut up to 3,000 jobs in the next year to align resources with its business plan as the closing of Oracle Corp.'s (ORCL) acquisition of Sun has been delayed.