By RTT News,
February 03, 2014, 06:34:00 AM EDT
(RTTNews.com) - Early indications suggest that Wall Street stocks may open lower, as global economic uncertainties continue to weigh on the markets. The major U.S. index futures are pointing to a lower start on Monday. Earlier in the global trading day, Asian stocks that were open for trading moved to the downside, hurt by the general risk aversion in play amid the release of soft Chinese manufacturing reading, while European stocks are also coming under selling pressure. The mood of the market may also hinge on economic data on the manufacturing sector.
As of 6:30 am ET, the Dow futures are slipping 33 points, the S&P 500 futures are receding 3.90 points and the Nasdaq 100 futures are moving down 9.50 points.
U.S. stocks extended their slide in the week ended January 31st, as the failure of the Fed to slowdown its pace of its bond purchases and mixed earnings exerted downward pressure on stocks.
Jobs and private sector activity data are among the key economic readings that could offer some clarity to the economic outlook in the unfolding week. Traders are expected to focus on the Labor Department's non-farm payrolls report for January, ADP's private sector jobs report, the weekly jobless claims report, the results of the Institute for Supply Management's manufacturing and non-manufacturing reports for January and the final reading of Markit's U.S. manufacturing survey for January.
Auto sales for January, the Commerce Department's construction spending, trade balance and factory orders reports, all for December, the Labor Department's preliminary non-farm productivity and costs data for the fourth quarter, the Federal Reserve's consumer credit report for December, some Fed speeches and announcements concerning the Treasury auctions of 3-year and 10-year notes and 30-year bonds round up the economic events of the week.
The nation's automakers, including overseas companies, are due to release their monthly sales figures for January. Economists estimate total vehicle sales to come in at a seasonally adjusted annual rate of 15.8 million units compared to a 15.4-million unit rate in December. Markit is scheduled to release the final manufacturing purchasing managers' index for January at 8:58 am ET. Economists expect the manufacturing index to have declined to 53.9 from 55 in December, but up from the mid-month reading of 53.7.
The Institute for Supply Management is due to release the results of its national manufacturing survey for January at 10 am ET. The consensus estimates call for a decline in the index to 56 from 57 in December. The Commerce Department is scheduled to release its construction spending report for December at 10 am ET. Economists estimate no change in the construction spending compared to the previous month.
In corporate news, Jos. A. Clothiers (JOSB) continued to reiterate in a letter written by its directors in response to the letter sent by Men's Wearhouse ( MW ) CEO Douglas Ewert that the board continues to believe that the latter's offer to acquire Jos. A. Cloth undervalues the company and is not in the best interest of its stockholders. Accordingly, the company's board sees no benefit in commencing negotiations with Men's Wearhouse.
Anadarko Petroleum ( APC ), Edward Lifesciences (EW), General Growth Properties ( GGP ), Hartford Financial (HIG), MDU Resources ( MDU ), PartnerRe (PRE), Post Properties (PPS), Principal Financial (PFC), Take-two (TTWO) and Yum Brands (YUM) are among the companies due to release their quarterly results after the close of trading.
The major Asian markets that remained open for trading ended on a negative note, as weak Chinese data and the negative lead from Wall Street engendered negative sentiment in the markets. The Chinese, Hong Kong and Taiwanese markets were closed for Lunar New Year holidays.
Japan's Nikkei 225 average ended down 295.40 points or 1.98 percent at 14,619. Australia's All Ordinaries languished below the unchanged line for the better part of the session before closing down 3.20 points or 0.06 percent at 5,202. Financial, material and healthcare stocks declined in the session, while energy stocks gained ground.
On the economic front, the results of a survey by the China Federation of Logistics and Purchasing and the National Bureau of Statistics showed that Chinese non-manufacturing sector activity declined in January. The non-manufacturing purchasing managers' index declined to 53.4 in January from 54.6 in December, as domestic demand and employment conditions remained weak.
European stocks have shown some volatility in early trading and are currently trading lower.
In corporate news, Smith & Nephew (SNN) announced a deal to buy ArthoCare (ARTC) for $1.7 billion in cash. Ryanair reported a loss for its third quarter despite an increase in the number of passengers carried, as ticket prices fell. However, forward bookings rose. Rangold Resources reported lower profits and revenues for its fourth quarter.
On the economic front, revised estimates released by Markit Economics showed that its final estimates of the purchasing managers' index for manufacturing activity in the eurozone came in at 54 for January, upward revision from the preliminary estimate of 53.9. In December, the index was at 52.7. A survey by the U.K. Chartered Institute of Purchasing & Supply and Markit Economics showed that their purchasing managers' index for the U.K. eased 0.5 points to 56.7 in January. Economists had expected a more modest slowdown to 57.1.
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