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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Stock Futures Decline Ahead of Fed Meeting


NEW YORK (TheStreet) -- Stock futures were pointing to a lower start for Wall Street Monday as investors awaited the kickoff Wednesday of the two-day Federal Reserve meeting, at which further stimulus measures are widely expected following Friday's dismal jobs report.

Meanwhile, the market mood was dealt a blow Monday with a set of weaker-than-expected China trade data.

Futures for the Dow Jones Industrial Average were falling 18 points, or 20.64 points below fair value at, at 13,278. Futures for the S&P 500 were down 2.49 points, or 1.31 points below fair value, at 1435. Futures for the Nasdaq were down 4.75 points, 6.06 points below fair value, at 2818.

On Monday, China's customs bureau said that Chinese imports declined 2.6% year over year in August, missing the 3.5% increase economists in a Reuters survey were expecting, and stoking worries about slowing demand in the world's second-largest economy.

"Slowing real domestic demand in China was the key factor, consistent with the soft activity data in the past few weeks," commented Societe Generale economists.

Exports rose 2.7%, weaker than the prediction of a 3% increase.

The major U.S. equity averages finished a banner week with mild gains on Friday, extending multi-year highs, as investors looked ahead to the potential for more stimulus from the Fed in light of the shortfall in nonfarm payrolls.

Friday's weak employment data "added further weight to our call for QE3 and an extension beyond late-2014 of the low rate period at the September 12-13 FOMC," said Societe Generale economists. "On QE3, we expect the Fed to announce a program focusing on both Agency-MBS (Mortgage-Backed Securities) and Treasuries, but rather than pre-announcing an amount we believe that the Fed may opt to announce a time period allowing for greater flexibility."

Even a warning from chip giant Intel (INTC) wasn't enough to spark a round of profit-taking Friday after Thursday's robust rally on enthusiasm about the European Central Bank's own bond-buying plan.

"The markets do not like uncertainty and Mario Draghi exposed some of the plans to absorb the effect of the debt problem in Europe for the time being," said Brian Amidei, partner and managing director at HighTower. "This is yet another band-aid on a large wound that needs proper mending. It will buy some time for a cure but there are still many systemic challenges ahead. For now, the markets should have had a positive response."

The economic calendar in the U.S. Monday includes the consumer credit report at 3 p.m. EDT. Economists expect that consumer credit rose by $10 billion in July after expanding by $6.5 billion in June.

The FTSE in London was up 0.09% Monday, while the DAX in Germany was up 0.06%. The Hong Kong Hang Seng index finished up by 0.13% and the Nikkei in Japan closed down 0.03%.

The benchmark 10-year Treasury was lower by 2/32, raising the yield to 1.679%. The greenback was up 0.10%, according to the dollar index.

October crude oil futures were down 24 cents at $96.18 a barrel and December gold futures were down $7 at $1,733.50 an ounce.

On the corporate front, AIG (AIG) said the U.S. Treasury Department is selling $18 billion worth of its common shares to institutional investors.

Shares were falling more than 1.5%.

BP (BP) is nearing a deal to sell some of its oil fields in the Gulf of Mexico to Plains Exploration & Production (PXP) for about $7 billion.

Shares were up 0.14%.

JPMorgan Chase (JPM) directors are considering lower 2012 bonuses for CEO Jamie Dimon and other top executives in the wake of a multbillion-dollar trading scandal, while the board of Citigroup (C) is expected to decide this fall how to fine-tune next year's compensation plan to win broader support among investors, people familiar with the situation told the Journal.

JPMorgan shares were trading sideways, and Citigroup shares were down 0.3%.

Transocean (RIG) agreed to sell 38 shallow-water drilling rigs to Shelf Drilling International for $1.05 billion.

Shares were gaining more than 1%.




--Written by Andrea Tse in New York.



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

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,119.12 +12.42 0.07%
S&P 500 2,000.07 +0.05 0.00%
NASDAQ 4,571.7960 +1.1590 0.03%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs