Day Ahead: Global Recall

 | Mar 04, 2014 | 8:30 AM EST  | Comments
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Monday's flight to safety took a detour Tuesday morning as U.S. equities futures came roaring back, poised to regain all of the previous session's losses when the bell rings.

As tensions between Ukraine and Russia eased overnight, European markets also rallied and Asian markets closed predominantly higher. Oil and gold prices were backing off Monday's highs recently as liquidity flowed back into equities and other risk-based investments.

In earnings news this morning, RadioShack (RSH) shares lost more than 20% in premarket trading on the announcement that the struggling electronics retailer plans to close 1,100 stores this year amid a 19% decline in quarterly same-store sales. The company posted a wider loss in the fourth quarter that far exceeded analyst expectations. Meanwhile, AutoZone (AZO) beat forecasts by $0.09 per share in its fiscal second quarter on sales that were slightly better than views. The company credited the severe winter weather for a jump in the demand for auto parts.  

Shares of Stocks Under $10 holding McDermott (MDR) plummeted in premarket trading after posting a surprise fourth-quarter loss of $1.37 per share late Monday on revenue of $517 million and pulling its previous guidance "for the foreseeable future." Analysts had expected the offshore-oil-services company to earn $0.15 per share on $825 million.

Elsewhere, Tesla (TSLA) shares got a bump up in early trading on news that the electric-car maker plans to expand its European operations. Qualcomm (QCOM) boosted its dividend and added to its share buyback program by $5 billion, helping shares higher by 3%. And Apple (AAPL) announced that CFO Peter Oppenheimer will retire at the end of September, to be succeeded by Luca Maestri, the company's corporate controller and vice president of Finance.

Look for earnings from Bob Evans (BOBE), Smith & Wesson (SWHC) and YY Inc. (YY), among others, after the close of trading.

Teen retailer Abercrombie & Fitch (ANF) received an upgrade to Outperform from Credit Suisse analysts, while Goldman Sachs boosted hotelier Hilton Worldwide (HLT) to Buy and cut Starwood Hotels (HOT) to Neutral.

On the economic docket, look for Redbook's comparable-store sales report at 8:55 a.m. ET. And Richmond Federal Reserve President Jeffrey Lacker will speak in New York at 4:15 p.m.

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