Futures Dip Ahead of Data Despite Upbeat Earnings

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U.S. stock futures were trading defensively into Tuesday's economic data as Wall Street braces for the prospect of a tightening in Federal Reserve policy in respect of bullish factory orders and July non-manufacturing indices.

Although several large U.S. companies reported upbeat Q2 earnings, the focus has shifted on the U.S. economy and what impact consistent and robust economic growth will do to U.S. interest rates. Besides U.S. data, futures were also weighed down by weakness in the Chinese services sector, as well as by investors moving into the 10-yr Treasury note as that security pushes up against key support of 2.50%.

Corporate earnings included better-than-expected results from Coach ( COH ), CVS Caremark ( CVS ) and American International Group ( AIG ), while Motorola ( MSI ) was a notable miss in the early flood of earnings.

Tuesday's economic calendar kicks off at 9:45 a.m. ET, with the final July services Markit PMI, expected to remain unchanged from the flash 61.0. This will be followed at 10 a.m. ET with June factory orders and the July ISM non-manufacturing index. Factory orders are expected to increase 0.6%, more than offsetting a 0.5% decline in May, while the ISM is forecasted to improve to 56.5 from 56.0 in June.

-Dow Jones Industrial down 0.30%

-S&P 500 futures down 0.39%

-Nasdaq 100 futures down 0.34%

SENTIMENT

Nikkei down 1.00%

Hang Seng up 0.20%

Shanghai Composite down 0.15%

FTSE-100 up 0.19%

DAX-30 up 0.37%

PRE-MARKET SECTOR WATCH

(-) Large cap tech: lower

(-) Chip stocks: lower

(-) Software stocks: lower

(-) Hardware stocks: lower

(-) Internet stocks: lower

(-) Drug stocks: lower

(-) Financial stocks: lower

(+/-) Retail stocks: mixed

(+/-) Industrial stocks: mixed

(-) Airlines: lower

(-) Autos lower

UPSIDE MOVERS:

(+) GTAT (+4.47%) Earnings guidance was weaker than expected

(+) ODP (+5.48%) Meets Q2 estimates but raises FY2014 forecast

(+) COH (+3.00%) Reported better than expected earnings and revenue

DOWNSIDE MOVERS:

(-) MSI (-3.60%) Missed earnings estimates

(-) SALE (-21.34%) Reported disappointing Q2 earnings, downgraded by RBC Capital to Sector Perform

(-) FIVN (-23.88%) reported a Q2 loss of $0.20 per share on revenue of $24.70 million, downgraded by Pacific Crest



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

Copyright (C) 2014 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.


This article appears in: Investing , Commodities

Referenced Stocks: COH , CVS , AIG , MSI

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