This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Stock Futures Slip As Second Quarter Begins

NEW YORK ( TheStreet) -- U.S. stock futures Monday were falling ahead of new reports on manufacturing and construction spending, after stocks booked solid gains during the first quarter.

Futures for the Dow Jones Industrial Average were down 17 points, or 18 points below fair value, at 13,125. Futures for the S&P 500 were down 1 point, or 1 point below fair value, at 1402. Futures for the Nasdaq were down 3 points, or 3 points below fair value, at 2749.

After the S&P 500 pushed ahead by 12% in the first quarter, market-watchers are cautious about the second quarter. Corporate earnings growth is expected at 3.2% for the second quarter, an estimate that's significantly lower than the forecast from last year, according to Thomson Reuters. Analysts had expected growth of 10.2% in October 2011, but a high number of negative pre-announcements have pushed down the consensus forecast.

On the U.S. economic calendar Monday, the Institute for Supply Management's manufacturing index for March and construction spending for February are both expected at 10 a.m. EDT. Economists forecast the manufacturing index to show a reading of 53 for March after coming in at 52.4 the prior month. A Commerce Department report may show that construction spending rose 0.7% in February, according to a Bloomberg survey of economists.

In corporate news, Groupon (GRPN - Get Report) the online deals company, revised its reported fourth-quarter results lower. Its independent auditor determined it has a "material weakness" in its internal controls. Groupon affirmed its first-quarter guidance, reiterating its revenue forecast of between $510 million and $550 million.

Starbucks (SBUX) is planning a big expansion of its China business, according to reports. The coffee-shop operator plans to triple its number of stores in China to 1,500 from 500 by 2015, said John Culver, the head of Starbuck's China and Asia Pacific business, according to The Wall Street Journal.

Sirius XM Radio (SIRI - Get Report) is appealing to federal regulators to prevent Liberty Media from taking over the satellite radio company. Sirius revealed in a filing to the Federal Communications Commission on Friday that Liberty has asked the FCC for permission to take "de facto" control of Sirius. But Sirius asked the FCC to "dismiss or deny" the application, the Journal said.

Liberty owns preferred stock that is convertible into about 40% of the outstanding common stock of Sirius.

Credit card processor Global Payments (GPN - Get Report) said Sunday night it "identified and self-reported unauthorized access into its processing system. " Global Payments, in a press release, said hackers accessed its processing system and about 1.5 million card numbers "may have been exported." The company said the breach was confined to North America. It said it believes the "incident is contained."

Monday begins a shortened trading week. On Friday, the government will release its monthly jobs report for March, but U.S. markets will be closed for Good Friday.

Germany's DAX was up 0.15% while London's FTSE was down 0.12% on Monday.

In Asia, data showed that Chinese manufacturing activity rose last month. China's National Bureau of Statistics said over the weekend that its purchasing managers' index expanded to a one-year high of 53.1 in March, compared to another measure of manufacturing from HSBC which had showed a manufacturing contraction.

Hong Kong's Hang Seng closed down 0.16% while the Nikkei Average in Japan finished higher by 0.26% overnight.

May oil futures were down 52 cents to $102.50. In other commodities, June gold futures were down $3.90 to $1688 an ounce.

The dollar index was 0.12% higher. The benchmark 10-year Treasury was down 3/32 pushing the yield to 2.223%.

-- Written by Chao Deng in New York.

>To contact the writer of this article, click here: Chao Deng.

>To follow the writer on Twitter, go to: @chao_deng

>To submit a news tip, send an email to:

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
GRPN $3.62 0.00%
GPN $72.18 0.00%
SIRI $3.95 0.00%
AAPL $93.74 0.00%
FB $117.58 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs