Index futures were mixed this morning as Senate vote on a US-led
strike on Syria looms.
The Seante Foreign Relations Committee will vote today on
permission for the US military to use force in Syria for up to 90
days. The resolution will not authorize ground forces. Yesterday,
the administration received public support for intervention from
House Speaker John Boehner.
Before the opening bell,
(INDEXDJX:.DJI) futures were down 0.11% to 14,811 while futures
contracts on the
(INDEXSP:.INX) fell 0.06% to 1,638.10.
(INDEXNASDAQ:.IXIC) futures gained 0.20% to 3,092.75.
Today, investors will also digest a rash of new economic data.
Overnight, the Chinese composite PMI, compiled by HSBC, came out
strong. Services expanded faster to a five-month high of 52.8 in
August from 51.3 in July. (Readings over 50 indicate that the
sector is growing.) The private sector as a whole went from
shrinkage to growth, rising to 51.8 from 49.5. Japan also stepped
up growth. Composite PMI in the third-largest economy was 51.9, up
from 50.7 and services grew to 51.2 from 50.6. Despite improving
economic data, Chinese and Japanese shares declined overnight.
The PMI numbers for Europe were also encouraging, but stock indices
are still lower today. Composite PMI for the eurozone rose a full
point to 51.5 and services rose 0.9 points to 50.7. Spain's service
sector broke even for the first time since 2011, reaching a
26-month high of 50.4.
Retail sales across the eurozone fell 1.3% from a year earlier in
July, however. On a monthly basis, sales rose 0.1%.
Today, Eurostat also reported that the eurozone recession is
officially over. As reported last month, the collective economy
grew by 0.3% in the second quarter as household spending and
The Commerce Department announced today that America's trade
deficit widened by $4.4 billion to $39.1 billion in July.
US investors still have more to look forward to today. The annual
rate of motor vehicle sales in August is expected to rise slightly
to 15.8 million, with domestic vehicles making up 12.3 million of
the whole. The Federal Reserve will also publish its Beige Book, a
collection of anecdotal evidence of economic conditions that help
guide Fed members' policy decisions. The report is likely to show
the effects of rising interest rates on business growth.
In stocks news,
) shares fell 2% today after the company announced that it will
offer another $1 billion worth of stocks. The extra cash raised
will go toward product development, or a possible acquisition.
Just days before
) is likely to release a wearable device,
(OTCMKTS:SSNLF) is set to introduce a smartwatch at a trade show in
) was downgraded by
). Pointing to the risks of the acquisition, the investment bank
cut Microsoft to equal weight from overweight.