Stock futures are pointing lower this morning as yesterday's
selling pressure continues.
The S&P 500 is indicated to open lower by about 0.2 percent,
although losses were much steeper overseas. Japan's Nikkei and Hong
Kong's Hang Seng dropped more than 1 percent. In Europe, the German
DAX and French CAC-40 declined about half a percent.
The downside is mostly based on technicals rather than news events.
The S&P 500 rallied more than 10 percent between early June and
mid-August, returning to the same price area where it peaked
earlier in the year. Now investors are taking profits and returning
to Treasury bonds, which had fallen sharply as stocks appreciated.
German Chancellor Angela Merkel and French President Francois
Hollande will meet today to discuss further solutions to the
European debt, although no major announcements are expected until
September. The news flow will probably slow next week as
policymakers and investors take summer vacations.
Foreign-exchange and commodity markets are showing a similar trend
toward risk aversion this morning. Oil, copper and silver fell by
more than half of a percent, although natural gas rose. Most
agricultural foodstuffs are higher. The euro and Australian dollars
In company-specific news, software maker Autodesk is down by more
than 20 percent after reporting weak second-quarter results. Eli
Lilly climbed about 6 percent after drug trial results showed its
solanezumab compound helped reduce the effects of Alzheimer's
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