By RTT News, October 02, 2013, 06:31:00 AM EDT
(RTTNews.com) - The trading in the U.S. index futures suggests that Wall Street stocks may open notably lower, as traders retrain their eyes on the U.S. budgetary deadlock. With no immediate resolution at sight, traders are likely to exercise caution. The markets may also focus on the results of ADP's private payrolls survey amid fears concerning the effect the partial shutdown can have on the already fragile economic recovery. Most Asian stocks closed higher, while the European markets are seeing weakness as the domestic markets await monetary policy decision by the European Central Bank.
At 6:15 am ET, the Dow futures are trading down 76 point, the S&P 500 futures are declining 11.20 points and the Nasdaq 100 futures are gaining 15.25 points.
U.S. stocks advanced on Tuesday despite the government shutdown coming into effect.
On the economic front, the ADP is scheduled to release the results of its private payrolls survey for September at 8:15 am ET. Economists expect the economy to have added 180,000 jobs compared to the 176,000 jobs added in August.
The Energy Information Administration will release its petroleum status report for the week ended September 27th at 10:30 am ET.
Boston Federal Reserve Bank President Eric Rosengren is due to speak in Burlington, Vermont at 12 pm ET. Federal Reserve Chairman Ben Bernanke and St. Louis Federal Reserve Bank President James Bullard are schedule to make opening remarks at the St. Louis Fed's Community Banking Research Conference at 3 pm ET.
Global Payments ( GPN ) reported first quarter cash earnings of $1 per share, up from 59 cents per share last year. Revenues rose 7 percent to $629.7 million.
Reflecting its intention to enter into an acceleration repurchase plan this month to buy up to $100 million out of the currently $200 million authorization, the company raised its full year GAAP earnings guidance by 5 cents to $3.98 to $4.05 per share. Cash earnings is expected at $3.98-$4.05 per share. Separately, the company announced the appointment of Jeffrey Sloan as its CEO, effective immediately, replacing Paul Garcia.
Resources Connection ( RECN ) reported first quarter earnings of 9 cents per share on revenues of $131.7 million, down 3.8 percent year-over-year. The results missed estimates.
Maxim Integrated (MXIM) announced the completion of its acquisition of Volterra Semiconductor.
DDR Corp. ( DDR ) announced the closing of its previously announced acquisition of a portfolio of 30 prime power centers for its existing joint venture with Blackstone Real Estate Partners as well as the settlement of its forward equity sale.
Most Asian markets closed higher, with the Japanese and Singaporean markets declining notably, while the Chinese market remained closed. The markets were encouraged by the positive close on Wall Street overnight and also thrived on hopes that the U.S. budgetary issue will be resolved quickly enough to avoid any hurt to the global economy. The Japanese market was held back by the yen's strength, which exerted downward pressure on stocks.
Australia's All Ordinaries closed 8.60 points or 0.17 percent higher at 5,215. Energy, financial and consumer staple stocks advanced strongly, helping to offset the weakness in the material and telecom spaces. Hong Kong's Hang Seng closed at 22,985, up 124.62 points or 0.55 percent.
Meanwhile, Japan's Nikkei 225 ended down 314.23 points or 2.17 percent at 14,171. A majority of stocks declined in the session, with Pacific Metals, Nippon Light Metal, Mitsubishi Logistics, Takara Holdings and Kyocera leading the declines.
On the economic front, a report released by the Australian Bureau of Statistics reported that building approvals fell 4.7 percent month-over-month in August. Economists expected a more modest 0.5 percent drop. A separate report showed that the nation's trade deficit narrowed to A$815 million in August from A$1.375 billion in July. Economists expected a A$400 million deficit.
The monetary base of Japan surged up 46.1 percent year-over-year in September, according to a report released by the Bank of Japan. In August, monetary base swelled 42 percent.
The Asian Development Bank slashed its economic growth forecasts for developing Asia, citing more moderate economic activity in China and India as well as widespread concerns that possible tapering of US stimulus program could impact growth in the region. The region is now expected to grow by 6 percent, down from the 6.6 percent predicted in April.
European stocks opened notably lower and are continuing to trade in negative territory on renewed concerns about growth and ahead of the European Central Bank monetary policy decision.
On the economic front, a survey by Markit showed that the growth in the construction sector in the U.K. unexpectedly slowed in September. The headline construction purchasing managers' index fell to 58.9 in September from a near six-year high of 59.1 in August. Economists had forecast an increase in the index to 59.5.
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