Stock futures were lower after scoring new highs on Monday as Wall Street appears to be taking a breather before the release of factory orders at 10ET. The Nasdaq continues to trade defensively as a result of pressure on Google ( GOOG ) and Apple ( AAPL ) as investors react negatively to news that Google plans to spend $1 billion on satellites to improve internet access, and Apple's unimpressive iOS 8 operating system.
The Census Bureau is expected to show that factory orders rose 0.5% in April following a strong 1.1% gain the month prior.
In corporate news, Pilgrim's Pride ( PPC ) took off the gloves in its bidding war for Hillshire Brands ( HSH ), raising its offer to $7.7 billion, topping Tyson Foods' ( TSN ) $6.3 billion offer.
Also, Element Financial Corp offered $1.4 billion for PHH Corp's (PHH) auto fleet leasing division.
In Europe, financial markets are still on ECB-watch ahead of what is expected to be a decision by the central bank to increase stimulus measures to tackle lingering deflationary pressures and stagnant economic growth. Overnight, inflation data across the continent indicated that downward price pressures are abating but remain well below ECB targets. Despite the expectation for more accommodation, European bourses are all in the red.
-Dow Jones Industrial down 0.17%
-S&P 500 futures down 0.21%
-Nasdaq 100 futures down 0.25%
SENTIMENT
Nikkei up 0.66%
Hang Seng up/down xxx%
Shanghai Composite up 0.91%
FTSE-100 down 0.59%
DAX-30 down 0.22%
PRE-MARKET SECTOR WATCH
(-) Large cap tech: lower
(-) Chip stocks: lower
(-) Software stocks: lower
(-) Hardware stocks: lower
(-) Internet stocks: lower
(-) Drug stocks: lower
(-) Financial stocks: lower
(-) Retail stocks: lower
(+/-) Industrial stocks: mixed
(+/-) Airlines: flat
(+) Autos higher
UPSIDE MOVERS:
(+) HSH (+8.55%) Pilgrim's Price ( PPC ) enters bidding war with Tyson Foods ( TSN )
(+) IDCC (+11.55%) Raises Q2 revenue guidance above street; signs patent license deal with Samsung
(+) RNA (5.00%) Will file a New Drug Application on Duchenne Muscular Dystrophy treatment.
(+) SPEX (+9.39%) Completes $20 million financing
DOWNSIDE MOVERS:
(-) WAIR (-5.15%) Shares being sold by Carlyle Price at 4.8% discount to Monday's close
(+) ZQK (-38.86) Reported disappointing earnings and revenue, pushed back profit improvement plan
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
