Wall Street Reverts To Cautious Ways
(RTTNews.com) - The mood on Wall Street has turned cautious yet again after yesterday's rebound, as the issues that are holding the markets back are once again on the forefront. The major U.S. index futures are pointing to a lower opening on Friday. The non-resolution of the U.S. budgetary crisis and fears of premature tightening by the U.S. Federal Reserve have been working in the minds of traders, preventing any meaningful recovery. As the markets look for clarity on these twin concerns, the Commerce Department's personal income and spending report and some Fed speeches scheduled for the day are likely to give some directional cues.
At 6:15 am ET, the Dow futures are slipping 45 points, the S&P 500 futures are moving down 6.40 points and the Nasdaq 100 futures are declining 10.75 points.
U.S. stocks staged a modest rebound on Thursday after trading on a lackluster note in the previous five sessions amid mostly positive economic data.
On the economic front, the Commerce Department is scheduled to release its personal income and spending report for August at 8:30 am ET. Economists expect personal income growth of 0.4 percent month-over-moth, while personal spending may have risen by 0.3 percent.
Boston Federal Reserve Bank PresidentÂ Eric RosengrenÂ is scheduled to make opening remarks to a New York Fed payments conference in New York at 8:30 am ET.
Reuters and the University of Michigan are due to release the final estimate of their U.S. consumer sentiment index for September at 9:55 am ET. The consensus estimates call for an upward revision to 78 from the preliminary estimate of 76.8.
New York Federal Reserve Bank PresidentÂ William DudleyÂ will speak on the economy in Syracuse, New York at 2 pm ET.
In corporate news, Nike (NKE) reported first quarter earnings from continuing operations of 86 cents per share compared to 63 cents per share last year. Revenues from continuing operations rose 8 percent to $7 billion. The results exceeded estimates. The company also noted that worldwide futures orders for NIKE brand athletic footwear and apparel scheduled for delivery from September 2013 through January 2014 were up 8 percent year-over-year.
Accenture (ACN) reported fourth quarter earnings that were in line, while its revenues were ahead of expectations. The company's 2014 guidance was in line. The company said its board approved a 15 percent increase in its semi-annual cash dividend to 93 cents per share and also approved a $5 billion additional share repurchase authority.
XL Group (XL) announced that it estimates net loss of $60 million, pre-tax and net of reinsurance and reinstatement premiums, related the series of hailstorms in Germany and France in late July 2013.
Thor Industries (THO) reported fourth quarter earnings from continuing operations of $1.04per share, up 35 percent year-over-year. Sales from continuing operations rose 19 percent to $914 million. The earnings exceeded estimates, while the sales trailed expectations. J.C. Penney (JCP) said it commenced an underwritten public offering of 84 million shares of its common stock.
Most Asian markets advanced, tracking the positive mood on Wall Street overnight, although the Japanese market retreated on in the domestic inflation data that supported the yen. Nevertheless, the mood across the markets in the region was cautious, as traders dreaded the impact of a potential U.S. government shutdown.
Australia's All Ordinaries closed 14.10 points or 0.27 percent higher at 5,302. Energy and healthcare stocks found some buying interest, while financial stocks retreated. Hong Kong's Hang Seng Index closed at 23,207, up 82.01 points or 0.35 percent, and China's Shanghai Composite Index ended up 4.22 points or 0.20 percent at 2,160.
Japan's Nikkei 225 average spent the better part of the session before closing down 39.05 points or 0.26 percent at 14,76. Export stocks moved to the downside, while strength in utility, financial and pharma stocks helped to limit the downside.
On the economic front, a report released by Japan'sMinistry of Internal Affairs and Communication showed that core consumer prices rose 0.8 percent year-over-year in August. Economists had expected a 0.7 percent increase. Core consumer price inflation for the Tokyo region, considered a precursor for the whole of Japan, was 0.2 percent in September, tamer than the 0.3 percent rate forecast by economists. Profits of major Chinese industrial firms increased in August from a year earlier, according to data released by the National Bureau of Statistics.
European stocks opened mixed, but have turned uniformly lower in early trading. The major averages in the region are currently trading modestly lower.
On the economic front, the results of a survey by GfK showed that U.K. consumer confidence improved to a 6-year high in September. The consumer confidence index based on the survey rose to -10 in September from -13 in August, with the reading exceeding expectations for a score of -11.
The U.K. Nationwide Building Society reported that U.K. house prices rose for the fifth straight month, with prices up 0.9 percent month-over-month in September following a 0.7 percent increase in August. Revised estimates released by French statistical office INSEE showed that the French economy expanded 0.5 percent sequentially in the second quarter, in line with its initial estimates, following a 0.1 percent GDP decline in the first quarter. The second quarter growth represented the fastest expansion since the first quarter of 2011.
Eurozone economic confidence rose more than expected in September with markedly improved confidence across all business sectors, the European Commission said. The economic sentiment index climbed to 96.9 from 95.3 in August.
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