Markets

US Futures Lose Steam After Rally on Fed, Alibaba; Chicago Fed Activity Index Plummets

U.S. stocks are expected to open lower Monday, having lost some steam after Alibaba's ( BABA ) record-breaking initial public offering on Friday and as the Chicago Fed Activity Index unexpectedly dropped into negative territory.

The week will bring some data on existing and new home sales, and on Friday; data on gross domestic product growth for Q2, seen rising 4.6% from Q1 within the range between 4.3% and 5.0%.

In economic data out today, the Chicago Fed National Activity Index at 8:30 a.m. E.T. plummeted to minus 0.21 compared to the expected plus 0.35, according to data compiled by Econoday. Meanwhile July was revised down to plus 0.26 from plus 0.39. A 0.4% decline in the manufacturing component of the industrial production report weighed on the index.

At 10:00, existing home sales are expected to have gained to 5.18 million in August from 5.15 million in July, in the range between 5.00 million and 5.27 million.

Also Monday, New York Federal Reserve Bank President William Dudley will speak at a conference in New York, at 10:05 a.m., and Minneapolis Federal Reserve Bank President Narayana Kocherlakota is speaking on monetary policy objectives in Marquette, Michigan, at 7:30 p.m.

In equities Yahoo ( YHOO ) fell 1.9% as Bank of America downgraded the stock to neutral from buy. While China's e-commerce site Alibaba fell 0.9% in the wake of its initial public offering on Friday. Underwriters of the IPO will reportedly exercise their option to buy 15% shares more on strong demand, according to Bloomberg. The stock closed up 38% in its trading debut.

Sigma-Aldrich ( SIAL ) jumped 34.1% after agreeing to be acquired by Germany's Merck KGaA for $17 billion.

U.S. PRE-MARKET INDICATORS

-Dow Jones Industrial down 0.23%

-S&P 500 futures down 0.35%

-Nasdaq 100 futures down 0.37%

-Nasdaq-100 Pre-Market Indicator up 0.01%

GLOBAL SENTIMENT

Nikkei down 0.71%

Hang Seng down 1.44%

Shanghai Composite down 1.91%

FTSE-100 down 0.74%

DAX-30 down 0.16%

PRE-MARKET SECTOR WATCH

(+/-) Large cap tech: mixed

(+/-) Chip stocks: mixed

(-) Software stocks: lower

(+) Hardware stocks: unchanged to higher

(-) Internet stocks: lower

(+/-) Drug stocks: mixed

(+/-) Financial stocks: mixed

(-) Retail stocks: unchanged to lower

(+/-) Industrial stocks: mixed

(+) Airlines: higher

(-) Autos: lower

UPSIDE MOVERS

(+) DRC (+2.6%) Siemens to buy co for $38/share, or $7.8 billion

(+) TATT (+6.6%) Wins Republic Airways contract worth up to $45 million

(+) EMC (+3.2%) Reportedly met with HP, Dell on possible M&A

(+) BLUE (+1.0%) Roth initiates coverage with buy rating

(+) TTMI (+15.5%) Buys VIAS (+44.2%) for $368 million

(+) RSH (+7.0%) In talks with major vendor to help financial restructuring

(+) YGE (+5.0%) To supply over 24 MW of PV modules to Honduras solar plant

DOWNSIDE MOVERS

(-) MTL (-20.0%) Russian minister says bankruptcy most likely option

(-) INVN (-2.9%) Baird downgrades stock to neutral from outperform

(-) BGC (-1.8%) Sees Q3, FY operating income at low end of range

(-) WAG (-1.2%) Barclays downgrades stock to equalweight from overweight

(-) THLD (-5.6%) Results from sarcoma drug trial to be delayed

(-) WYNN (-1.6%) Wells Fargo downgrades stock to market perform from outperform

(-) VHC (-3.2%) CEO cuts stake in co to 15.8% from 19.3%

(-) OUTR (-2.6%) B. Riley downgrades to sell from neutral

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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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.

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