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 Drift Lower


NEW YORK ( TheStreet) -- Stock futures were signaling a lower open for Wall Street Wednesday as investors weighed global worries, worsened by FedEx's (FDX - Get Report) reduced guidance and gloomy European reports, against hopes for stimulus ahead of the European Central Bank meeting on Thursday.

Futures for the Dow Jones Industrial Average were down 20 points, or 6.06 points above fair value, at 13,030. Futures for the S&P 500 were down 2.9 points, or 0.34 points below fair value, at 1403. Futures for the Nasdaq were down by 7.75 points, 3.98 points below fair value, at 2766.

"We move towards the ECB meeting tomorrow, with markets looking for reasons to be volatile," said Paul Donovan, global economist at UBS. "We expect the ECB to ease the refi (not the discount) rate and to give a broad outline of the bond buying program -- with the constraint that we still have the German court ruling the permanent European rescue fund ahead."

U.S. stocks finished mixed Tuesday afternoon with a weak batch of economic data balanced against a 1%-plus pop in Apple (AAPL). The ongoing debate about what kind of support the ECB will provide for the region's troubled nations also affected investor sentiment.

The Bureau of Labor Statistics provided a revised read on U.S. second-quarter nonfarm business productivity of up 2.2%, above the 1.8% gain expected by economists.

The report said the read on second-quarter unit labor costs was revised to a 1.5% increase, as expected. The previous read showed a 1.7% gain.

The FTSE in London was drifting lower, down 0.39%, while the DAX in Germany was up 0.18% and paring gains, hurt by a number of disheartening reports.

The European Union's statistics office said Wednesday that retail trade in the region fell 0.2% in July from June as worsening economic conditions hurt consumer demand.

Also, Markit published data showing that its August composite PMI index on manufacturing and services declined to a revised 46.3, down from the flash reading of 46.6 and the July level of 46.5.

The Hong Kong Hang Seng index closed behind by 1.47% and the Nikkei in Japan finished down 1.09%.

The benchmark 10-year Treasury was unchanged, with the yield at 1.576%. The greenback was up 0.13%, according to the dollar index.

October crude oil futures were down 17 cents at $95.13 a barrel and December gold futures were down $2.10 at $1,693.90 an ounce.

On the corporate front, FedEx, the package delivery giant, said it now expects earnings of $1.37 to $1.43 a share in its fiscal first quarter ended in August, well below its original forecast for a profit of $1.45 to $1.60 a share.

FedEx said global weakness "constrained revenue growth at FedEx Express more than expected in the earlier guidance."

Analysts were expecting earnings of $1.56 a share in the first quarter.

Facebook (FB) CEO Mark Zuckerberg indicated he has no plans to sell any of his stock holdings in the social networking giant for at least 12 months.

Apple confirmed Tuesday it is holding a big event, widely expected to be the launch of the iPhone 5, on Sept. 12.

The stock finished Tuesday's regular session at $674.97, up 1.5%. The shares are up more than 60% in 2012.

Nokia (NOK) and Microsoft (MSFT) are expected Wednesday to unveil Nokia's new Lumia 920 smartphone in New York.

The new phone, Nokia's most powerful, will feature Windows Phone 8, the latest version of Microsoft's operating system.

Dollar General (DG - Get Report) hiked its full-year earnings guidance, after posting stronger fiscal-second quarter profit, as demand for basic goods and cheaper foods rose.

The discount retailer also announced that its board has approved the buyback of up to an additional $500 million of its common stock.




--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
DG $72.59 -0.71%
FDX $173.22 -1.07%
AAPL $130.28 -1.14%
FB $79.19 -1.19%
GOOG $532.11 -1.42%

Markets

DOW 18,010.68 -115.44 -0.64%
S&P 500 2,107.39 -13.40 -0.63%
NASDAQ 5,070.0260 -27.95 -0.55%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs