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 Slide on Cautious Fed, Growth Outlook

NEW YORK ( TheStreet) -- U.S. stock futures were pointing to a weaker open on Wall Street Monday as investors await a number of key events this week that could impact sentiment about a market trading at record highs.

Futures for the S&P 500 were falling 3.75 points, or 3.65 points below fair value, to 1,682.75. Futures for the Dow Jones Industrial Average were shedding 28 points, or 24.83 points below fair value, to 15,470. Futures for the Nasdaq were slumping by 5.5 points, or 4.33 points below fair value, to 3,065.

This week investors will be focused on the government's estimate of second-quarter U.S. gross domestic product on Wednesday, followed the same day by the Federal Reserve's latest policy announcement after its regularly scheduled two-day meeting. Also, the ISM manufacturing composite index for July will be published on Thursday, followed by the release of the month's U.S. government's non-farm payrolls report on Friday.

Also on Wednesday, alongside the initial snapshot of second-quarter output, the Bureau of Economic Analysis will release comprehensive benchmark revisions that extend back to 1929.

Joseph LaVorgna, the New York-based chief U.S. economist at Deutsche Bank said that there has been a steady pattern of upward revisions to non-farm payrolls numbers, and that chances are high that real GDP growth will be revised higher for the past couple of years.

"This has the potential to alter policymakers' perceptions of both the depth of the last economic downturn and the speed of the recovery," LaVorgna said. "The July employment report could solidify market participants' expectations for a September tapering of QE."

Hertz (HTZ - Get Report) was shedding more than 3% to $26 after the car-rental company reported in-line second-quarter earnings of 45 cents a share, with revenue also meeting expectations, as total expenses increased by 21% in the quarter.

Wynn Resorts (WYNN - Get Report) was falling 1.89% to $128.51 after the casino resorts operator posted second-quarter earnings that missed analyst expectations by six cents a share at $1.51 a share as revenue met estimates as sales growth in its Macau market slowed sharply to a 2.6% increase from a year ago.

Shares of Ireland's Elan (ELN) were surging more than 7% to $16.02 in premarket trading after Michigan-based drugmaker Perrigo (PRGO) reached a deal to buy Elan for $8.6 billion. Perrigo said it will pay Elan investors $6.25 a share in cash and $10.25 in Perrigo stock. The deal presents an 11% premium over Elan's closing price Friday. Perrigo shares were slipping more than 2% to $131.27.

Perrigo said it will become an Irish-based company and said it could cut its tax liabilities nearly in half, saving more than $150 million a year.

Omnicom (OMC - Get Report) shares were jumping more than 6% to $69.15 after the company and France's Publicis agreed to a merger that would create the world's largest advertising firm. The deal -- which combines the companies in a "merger of equals" -- is valued at around $35.1 billion.

The National Association of Realtors, at 10 a.m. EDT Monday, is expected to say that its pending home sales index fell 1% in June after gaining 6.7% in May.

The benchmark 10-year Treasury was unchanged with the yield at 2.566%. The dollar was falling 0.14% to $81.54 according to the U.S. dollar index.

U.S. stock markets posted their first weekly decline in July as investors balked at surpassing the 1,700 level on the S&P 500, unsure about the strength of the U.S. economic recovery and the Federal Reserve's commitment to maintain its stimulus program.

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
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
ELN $0.00 0.00%
HTZ $16.07 0.19%
OMC $73.01 -1.18%
WYNN $62.95 4.52%
AAPL $118.88 0.96%


Chart of I:DJI
DOW 17,812.19 +19.51 0.11%
S&P 500 2,089.14 +2.55 0.12%
NASDAQ 5,102.8080 +0.33 0.01%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs