Stocks are indicated lower following another round of selling in overseas equity markets and disappointing economic data Thursday. Forty-five minutes before the opening bell on Wall Street, stock index futures hint at a 20 or 30-point early loss for the Dow Jones Industrial Average.
Stock index futures tracked global equity markets lower overnight. In Asia, ShanghaiÃ¢â‚¬â„¢s Composite Index fell 1 percent after Chinese manufacturing data showed a drop in June. JapanÃ¢â‚¬â„¢s Nikkei lost 2 percent despite a positive Tankan business sentiment report from the Bank of Japan.
Meanwhile, benchmarks are broadly lower across Europe after MoodyÃ¢â‚¬â„¢s put Spain on review for a possible downgrade. FranceÃ¢â‚¬â„¢s CAC 40 Index is down 1.8 percent, UKÃ¢â‚¬â„¢s FTSE lost 1 percent, and GermanyÃ¢â‚¬â„¢s DAX slipped .8 percent.
The domestic news includes a disappointing reading on weekly jobless claims, which increased by 13,000 to 472,000 in the latest period. Economists were looking for a decline of 1,000.
Construction spending, the ISM manufacturing index, and pending home sales numbers are slated for 10:00 a.m. eastern time.
Bonds are flat ahead of the data. The benchmark ten-year Treasury is unchanged in early action and yields 2.93 percent. The dollar is taking a hit, falling .72 to 87.64 against the Japanese yen. The euro added .0138 to 1.2371 against the buck.
Commodity-related names might see relative weakness after crude oil slid 92 cents to $74.71 a barrel and gold lost $6.4 to $1239.50 an ounce.
The automakers will be in focus, with auto and truck sales numbers due out this afternoon. Smith and Wesson (SWHC) is up 7.5 percent on positive earnings news. Apollo Group (APOL) is seeing post-earnings weakness. Yahoo (YHOO) rose 1.2 percent on news of a $3 billion stock buyback. DELL edged higher after UBS upgraded the stock to Buy. Dendreon (DNDN) is down 13 percent on news Medicare is evaluating data on the companyÃ¢â‚¬â„¢s Provenge cancer treatment.
Category: Market Update
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Frederic Ruffy is a well-known trader, writer, and strategist who has spent years educating investors and creating intelligent, insightful, unbiased market observations that are frequently cited by the Wall Street Journal and other financial publications. As senior analyst, Fred provides frequent and regular notes and daily updates for activity of interest.