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Pre-Market: Amazon Says No to Bitcoin, Yes to Expanded Payment Options; Global Markets Move Lower

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Yahoo and Intel report earnings after today's close.

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Stock futures pointed toward a higher open on Tuesday. Before the opening bell, Dow Jones (INDEXDJX:.DJI) futures rose 0.22% to 16,132. Futures on the S&P 500 (INDEXSP:.INX) were up 0.23% to 1,828.70. Nasdaq (INDEXNASDAQ:.IXIC) futures moved higher, rising 0.19% to 3,477.

Stocks

Amazon (NASDAQ:AMZN) is developing a payments solution that will rival eBay (NASDAQ:EBAY)-owned PayPal. Amazon CEO Jeff Bezos has put pressure on the online retailing giant's payments chief Tom Taylor, who said that they are working on a Kindle-based retail checkout system. Amazon is also open to creating a P2P payments system and a payments processing network to compete with Visa (NYSE:V) and Mastercard (NYSE:MA). Amazon will not, however, be considering Bitcoin.

Re/code's Jason Del Ray described his interview with Amazon's Taylor in a recent story:

I mentioned to Taylor that many industry execs expect Amazon to eventually build its own full-blown payments network to compete against the big credit card companies. Will we see a day when the Amazon logo appears at a checkout counter alongside American Express, Visa and MasterCard?

"If we felt like we could do a better job than Amex and Visa, and feel like it helps the customer experience, that's something we would do," he said. "But it would really have to be something much better than [what they do]."

Industry sources familiar with Amazon's business believe it's a question of "when," not "if," but Taylor wouldn't provide any further details on the company's thinking.

Shares of Amazon were up 0.35% in pre-market trading.

Nestle (OTCMKTS:NSRGYreported sales dropped 5.1% in the first quarter, led by lower sales in Europe and North Africa. Organic sales growth fell below the company's long-term target, and the company saw unfavorable exchange rates cut performance. Nestle expects sales will pick up in the next few quarters.

After the closing bell, Yahoo (NASDAQ:YHOO) and Intel (NASDAQ:INTC) will both report earnings. Yahoo is expected to deliver a strong performance on strength from Chinese e-commerce company Alibaba in which Yahoo has a 24% stake. Intel could see gains after attempting to move ahead in the mobile chip-making space, which has so far been dominated by Qualcomm (NASDAQ:QCOM) and NVIDIA (NASDAQ:NVIDIA). Shares of Yahoo rose 1.81% before the open. Intel remained flat.

The Economy

Today's economic indicators were led by ICSC Retail Store Sales, which fell 0.3% last week as cool weather held back seasonal demand. The Consumer Price Index rose by 0.2% in March, a more-than-expected jump led by food and rent prices. The New York Fed's manufacturing survey showed business activity remained flat in New York state in March. Redbook chain store sales are out at 8:55 a.m. The US Treasury will release international capital data at 9:00 a.m. Both the NAHB Housing Market Index and US business inventories arrive at 10:00 a.m. The four-week bill auction commences at 11:30 a.m.

Global Markets

Overnight, Asian stocks fell on lower Chinese lending data, which showed the slowest increase in the country's money supply on record. Fears that the world's second largest economy is slowing down were compounded by a decline in the growth of new car sales to 6.6% in March.  

In Europe, stocks remained flat, as violence in the Ukraine drove investor caution. German investor confidence fell for the fourth month in a row, coming in far below analysts' expectations. In England, a spat of economic data revealed house prices rose 9.1% in February, inflation fell to its lowest level in four months, and retail sales saw their biggest decrease since April 2013.

Twitter: @brokawbrokaw
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