This Day On The Street
Continue to site
ADVERTISEMENT
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 Negative After Manufacturing, CPI Data


NEW YORK ( TheStreet) -- U.S. stock futures fell further Wednesday after lower-than-expected manufacturing sector and inflation figures.

Futures for the Dow Jones Industrial Average were falling 20 points, or 21.14 points below fair value, at 13,113. Futures for the S&P 500 were down 1.79 points, or 1.28 points below fair value, at 1399. Futures for the Nasdaq 100 were down 1.75 points, or 1.79 points below fair value, at 2725.

The major U.S. equity averages finished mixed Tuesday as a stronger-than-expected rebound in retail sales in July failed to fuel substantial buying.

The Labor Department reported before the markets opened Wednesday that the consumer price index was unchanged in July versus an unchanged reading in June. The core number, excluding the food and energy items, rose 0.1% after being up 0.2% in June. Economists surveyed by Reuters expected the headline CPI to rise 0.2% in July and the core number to stay at 0.2%.

At the same time, the New York Fed's Empire state survey showed that the general business conditions index weakened to negative 5.85 in August from 7.39 July.

"From a market standpoint, today's data works in favor of those believing the Fed is more likely to ease policy in coming months," said Dan Greenhaus, chief global strategist at BTIG. "Core prices appear to have topped out for now while headline prices have been pushing lower since the middle of 2011. The FOMC will not like that very much."

"The Empire Manufacturing survey is our first look at the manufacturing sector each month and in August, our first look was not good," he added. "The report isn't entirely negative per se but it's certainly broadly negative."

The Federal Reserve is predicted to say at 9:15 a.m. that industrial production rose 0.5% in July after gaining 0.4% in June. Capacity utilization is expected to have risen to 79.2% after increasing to 78.9% the month before.

At 10 a.m., the National Association of Home Builders is forecast to say that the housing market index stayed at 35 in August.

September crude oil futures were off 28 cents at $93.15 a barrel and December gold futures were down $5.90 at $1,596.50 an ounce.

The benchmark 10-year Treasury was slipping 6/32, raising the yield to 1.761%. The greenback was up 0.23%, according to the dollar index.

The FTSE in London was off 0.41% and the DAX in Germany was shedding 0.48%.

The Hong Kong Hang Seng index closed lower by 1.18% and the Nikkei in Japan finished down 0.05%.

In corporate news, Cisco (CSCO - Get Report) is expected to report fiscal fourth-quarter results after Wednesday's closing bell and analysts are calling for the networking equipment giant and Dow component to post earnings of 45 cents a share on revenue of $11.6 billion.

TheStreet will be live-blogging Cisco's results Wednesday at 3:45 p.m. EDT.

Warren Buffett's Berkshire Hathaway (BRK.A - Get Report) revealed in a 13-F filing it sold a stake in Intel (INTC), added to positions Wells Fargo (WFC) and Bank of New York Mellon (BNY) and sold off significant portions of positions in United Parcel Service (UPS) and Visa (V).

Berkshire Hathaway also bought shares of Phillips 66 (PSX) and National Oilwell Varco (NOV) in the second quarter.

Standard Chartered shares were rising in London after it agreed Tuesday to pay $340 million to New York's Department of Financial Services to settle accusations the U.K. bank hid illegal transactions with Iran and violated U.S. sanctions law.

New York Times (NYT) named Mark Thompson as its next president and CEO. Thompson most recently served as director general of the British Broadcasting Corp.


-- Written by Andrea Tse in New York.

>To contact the writer of this article, click here: Andrea Tse.

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
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
BRK.A $205,344.00 0.00%
CSCO $26.00 0.00%
AAPL $113.29 0.00%
FB $91.01 0.00%
GOOG $630.38 0.00%

Markets

Chart of I:DJI
DOW 16,643.01 -11.76 -0.07%
S&P 500 1,988.87 +1.21 0.06%
NASDAQ 4,828.3250 +15.6170 0.32%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs