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Pre-Market: Sony Cuts Forecast Following Fiscal Year Loss; Wholesale Prices Rise for Second Month


Asian stocks hit a four month high.

Stock futures pointed toward a lower open on Wednesday. Before the opening bell, Dow Jones (INDEXDJX:.DJI) futures fell 0.10% to 16,659. Futures on the S&P 500 (INDEXSP:.INX) were down 0.18% to 1,890.90. Nasdaq (INDEXNASDAQ:.IXIC) futures moved lower, falling 0.20% to 3,601.50.


Sony (NYSE:SNE) reported a loss of $1.25 billion in its fiscal year 2013 and projected it will lose another $489 million over the next year. The loss marks a sharp turnaround for Sony, which last year posted its first profit in five years. Sony saw higher revenues this year, particularly in its mobile and gaming divisions, which had increased earnings of 29.6% and 38.5%, respectfully. But restructuring costs cut deep, which included numerous costs tied to selling its VAIO PC business. Shares of Sony fell 5.22% in pre-market trading.

Coca-Cola (NYSE:KO) increased its equity stake in Keurig Green Mountain (NASDAQ:GMCR) from 10% to 16%; that's being seen as a vote of confidence in the upcoming launch of its Keurig Cold carbonated drink maker. Analysts at Canaccord see the increase in Keurig shares as a vote of confidence by Coca-Cola, which, because of previous deal terms has now maxed out the total amount of Keurig shares it can buy. Coca-Cola's move also underscores the value of the single-serve market, with the leading beverage heavyweight throwing itself into the ring. Coca-Cola fell 0.24% in pre-market trading.

Mark Reilly, the former head of GlaxoSmithKline's (NYSE:GSK) China division, along with two other executives from the company, has been charged with corruption by the Chinese government. Reilly and the two executives purportedly paid $488 million in bribes through 700 travel agencies and consultants over six years. A probe by the Chinese government found GlaxoSmithKline made billions from the bribes. The charges carry a maximum life sentence for Reilly, who has returned to China to cooperate with the investigation. Shares of GlaxoSmithKline fell 1.66% in pre-market trading.

In his first public speech since taking over as the director of the Federal Housing Finance Agency in January, Mel Watt pressed mortgage lenders Freddie Mac (OTCBB:FMCC) and Fannie Mae (OTCBB:FNMA) to make credit more available to homeowners. This is a reversal from previous post-crisis policy that sought to tighten mortgage-lending standards. Now federal regulators feel strict standards could harm the housing rebound and curtail economic recovery.


The US producer price index moved higher in April, rising 0.6% -- the second straight gain for the index. Both the wholesale price of goods and the wholesale price of services climbed 6%. Personal consumption rose 0.7%. The MBA's compilation of various mortgage loan indexes fell 1% over the past week, following a a 9% spike the week prior. At 10:00 a.m. EDT, the Atlanta Fed will release its business inflation expectations, and the National Association of Home Builders will release its housing market index for May. The EIA petroleum inventories arrive at 10:30 a.m.

Global Markets

Asian stocks hit a four-month high overnight as investors continued to speculate on what China will do to help support the property market. China's central bank requested 15 of the country's biggest banks speedup their mortgage approvals processes. In Europe, stocks declined a day after the Stoxx Europe 600 Index touched a six-year high. The Bank of England released its quarterly inflation report, while the International Labour Organization reported Britain's unemployment fell to a five-year low of 6.8%. Meanwhile, the European Central Bank is assembling a package of policy options for its June meeting, which includes interest rate cuts.
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