After yesterday's rally ran out of steam at record highs, stock
futures are trading in negative turf this morning, with investors
still spooked by yesterday's warning from billionaire investor Carl
Icahn and lofty levels that suggest the equity markets are
overbought in light of global growth forecasts. Last night, the
Organization for Economic Cooperation and Development cut its
global growth forecasts to 3.6% from 4.0% for 2014 due to weakness
in emerging markets and another looming budget crisis in the
Although Asian markets were supported early on by economic
reform efforts in China, overseas bourses were all trading in the
red in sympathy with yesterday's pre-close sell-off in the U.S. and
weakness in the UK banking and mining sector.
The economic data was light with only the Q3 Employment Cost
Index which reported a modest decline to 0.4% from 0.5% the quarter
prior. More Fed-speak is on tap with Charles Evans (voting, dovish)
at 2:15ET and Chairman Bernanke delivering a speech to the National
Association of Business Economics at 7:00ET.
-Dow Jones Industrial down 0.30%
-S&P 500 futures down 0.31%
-Nasdaq 100 futures down 0.19%
Nikkei down 4.00%
Hang Seng down 1.53%
Shanghai Composite down 0.67%
FTSE-100 down 0.74%
DAX-30 down 032%
PRE-MARKET SECTOR WATCH
(+) Large cap tech: higher
(+) Chip stocks: higher
(-) Software stocks: lower
(+/-) Hardware stocks: mixed
(+) Internet stocks: higher
(+/-) Drug stocks: mixed
(+/-) Financial stocks: mixed
(+/-) Retail stocks: mixed
(-) Industrial stocks: lower
(+) Airlines: higher
(+/-) Autos mixed
SPEX (+29.39%) Spherix's CompuFill LLC subsidiary has entered
into a settlement and license agreement with a leading technology
HZNP (+25.28%) Entered into note purchase agreements with
investors to issue $150 million aggregate principle and agreed to
buy the U.S. rights for Pozen Inc VIMOVO delayed-release
HD (+3.24%) Reports Q3 sales of $19.5 bln, better than the
analyst consensus of $19.16 bln on Capital IQ. EPS was $0.95, vs.
expectations of $0.89 per share.
LITB (-23.75%) Despite upbeat Q3 earnings, the company expects
Q4 net revenue to be between $75.0 million and $77.0 million,
versus the consensus estimate of $83.0 million.
TSLA (-2.39%) The National Highway Traffic Safety Administration
has opened a formal inquiry into safety-related issues in the Model
S electric car.
BBY (-5.88%) Despite better than expected Q3 earnings, Best Buy
warned that a more competitive environment, especially from
Wal-Mart, could hurt Q4 gross margin as the company seeks to
compete on price.
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