Stocks set to slip in hesitant market

By msnbc.com news services

Stocks are set to slip Wednesday as the market continues to show signs of fatigue after a strong run from late last year.

Apple's quarterly results on Tuesday blew past Wall Street's expectations after U.S. consumers snapped up near-unprecedented numbers of iPhones and iPads, sending its shares up 8 percent into record territory. Apple was up 7.7 percent to $453 in pre-market trading.

The results were a standout in what has otherwise been a fairly lackluster earnings season. So far 58 percent of companies have beat forecasts while at this stage in the third quarter earnings season, 70 percent beat forecasts.

"Up until now there has been pockets of weakness in a handful companies that have sparked concern among investors," said Andre Bakhos, director of market analytics at Lek Securities in New York.

But he added that lack of direction in the market this week was more likely due to a 22 percent run-up since October lows and that the market was poised to move higher as the economy improved and Europe contained its debt crisis.

"This market is setting itself up for a potent upside move," he said.

The U.S. Federal Reserve, which is holding its regular monetary policy meeting, looks set to keep monetary policy on hold on Wednesday, even as it releases forecasts expected to show interest rates will be near zero for at least two more years.

Roche Holding AG is offering $5.7 billion in cash to buy U.S. gene sequencing company Illumina Inc in a hostile takeover bid that marks a major play by the Swiss drugmaker into the gene technology field. Illumina rose 37 percent to $51.50 in pre-market trade.

U.S. President Barack Obama used his last State of the Union speech before the November election to paint himself as the champion of the middle class, by demanding higher taxes for millionaires and tight reins on Wall Street.

The National Association of Realtors issues Pending Home Sales for December at 10 a.m. (1500 GMT). Economists expect a 1.0 percent fall compared with a 7.3 percent rise in the previous month.

Nordic budget carrier Norwegian Air Shuttle ordered 222 narrow-body aircraft worth a total of $21.5 billion at list prices on Wednesday. It split its order between Boeing Corp and Airbus, part of EADS.

Diversified U.S. manufacturer Textron Inc reported a quarterly loss after taking a hefty charge to write down the value of loans on golf courses -- a hangover from the financial crisis. Its shares were up 6.4 percent to $23 before the open.

Boeing, the world's largest aerospace and defense company, is set to report a sharp decline in fourth-quarter profit. Other companies announcing results include Abbott Laboratories, Automatic Data Processing and Xerox.

European shares fell, weighed by the tech sector after a sharp post-results decline for mobile telecoms network gear maker Ericsson.

U.S. stocks edged lower on Tuesday, ending a five-day rally for the S&P 500, as talks to resolve Greece's debt crisis hit a snag and earnings from a number of blue-chips disappointed investors.

Reuters contributed to this report.

Source: http://bottomline.msnbc.msn.com/_news/2012/01/25/10232885-stocks-set-to-slip-in-hesitant-market

paul mccartney adam savage adam savage mos def jack o lantern jack o lantern dave thomas