By RTT News, March 04, 2013, 06:40:00 AM EDT
(RTTNews.com) - The eventuality struck despite many hopes that it may pass off. The intransigence of Congress in clinching a deal has triggered off spending cuts that could have multifarious ramification for the fragile recovery in place. The major U.S. index futures point to a modestly opening on Monday. Asian stocks, with the exception of Japan, ended sharply lower and the European markets are also seeing weakness. With the overbought levels and economic uncertainty serving to discourage traders from building on their positions, stocks could mostly go about a consolidation around current levels.
As of 6:15 am ET, the Dow futures are receding 47 points and the S&P 500 futures are moving down 6.50 points, while the Nasdaq 100 futures are slipping 12.25 points.
U.S. stocks advanced in the week ended March 1st, with traders building on their positions, encouraged by a batch of positive domestic data and assertion by the Federal Reserve and the European Central Bank of continued stimulatory support.
With sequestration kicking in, traders will be increasingly wary about each incoming economic evidence. The unfolding week's economic calendar has some key economic data that could render some clarity to the economic outlook. Traders closely watch the monthly non-farm payrolls report for February, the ADP's private sector employment report for February, the results of the Institute for Supply Management's non-manufacturing survey for February and the jobless claims report.
The Commerce Department's trade balance report for January and the Beige Book report also evince some interest among traders. The Commerce Department's factory goods orders report for January, the final fourth quarter productivity and costs report, the Federal Reserve's consumer credit report for January, the wholesale inventories report for January and announcements concerning the Treasury auction of 3-year and 10-year notes and 30-year bonds round up the economic calendar of the week.
Following the announcement of pricing by Medicare administrative contractor
Noridian Myriad Genetics (MYGN) announced that it expects 2013 revenues to come in at the high end of its previous guidance range of $575 million to $585 million and earnings to come in at the high end of its earlier guidance of $1.55-$1.58 per share. Analysts estimate earnings of $1.57 per share on revenues of $583.30 million.
Transocean ( RIG ) reported fourth quarter adjusted earnings from continuing operations of 91 cents per share on revenues of $2.326 billion. The earnings were ahead of estimates, while the revenues were in line.
PDL BioPharma ( PDLI ) reported fourth quarter earnings of 34 cents per share compared to 24 cents per share last year, while revenues rose to $86 million from the year-ago quarter's $72.8 million. The earnings beat estimates, while the revenues were about in line.
Praxair ( PX ) announced the completion of its previously announced acquisition of NuCO2 from Aurora Capital for $1.1 billion. Separately, the company said it expects the impact of the Venezuelan government's devaluation of the Bolivar to 6.30 from 4.30 will lead to a charge of 8 cents per share in the first quarter.
ABM Industries ( ABM ), Casella Waster (CWST) and Shuffle Master (SHFL) are among the companies due to release their quarterly results after the close of trading.
Most major Asian markets retreated, with the materialization of the U.S. spending cuts casting a gloom on the markets. The Chinese market led the treat after property stocks tumbled dragging the Chinese Shanghai Composite Index down by 3.65 percent. The stocks reacted to governmental measures to cool the property market. Meanwhile, the Japanese market bucked the downtrend with a modest move to the upside.
Australia's All Ordinaries opened lower and steadily declined throughout the session, with the selling accelerating by the mid-session before slowing in late trading. The index closed down 72.40 points or 1.42 percent at 5,029.
Hong Kong's Hang Seng closed at 22,538, down 342.41 points or 1.50 percent. Meanwhile, the Japanese Nikkei 225 averages stayed afloat, as the yen weakened in response to Bank of Japan Governor-designate Haruhiko Kuroda said in his confirmation hearing that he would do all what it takes to end deflation. After opening higher, the index gave up some of its gains by the mid-session yet managed to remain above the unchanged line and ended up 45.91 points or 0.40 percent at 11,652.
On the economic front, South Korea's annual consumer price inflation eased to 1.4 percent in February from 1.5 percent in January. Meanwhile, the Bank of Japan reported that monetary base jumped 15 percent year-over-year in February following a 10.9 percent increase in January.
The Australian Bureau of Statistics reported that the total number of building approvals fell 2.4 percent month-over-month in January, contrasting expectations for a 2.8 percent drop. Annually, building approvals rose a better than expected 9.9 percent.
European stocks are also trading lower amid fears over the fiscal development in the U.S. and very little catalysts.
In corporate news, HSBC ( HBC ) reported 2012 adjusted profit of $20.6 billion, 6 percent lower than last year. Meanwhile, revenues rose 7 percent to $63.5 billion.
On the economic front, the results of a survey by Sentix showed that eurozone investor confidence receded in March, breaking the string of six months of gains. Markit Economics reported that the U.K.'s construction sector activity contracted at a steeper pace in February. The purchasing managers' index declined about 2 points to 46.8.
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