NEW YORK ( TheStreet) - U.S. stock futures were pointing to a much lower opening Monday as indications that Japan's economic growth is slowing offer investors one less reason to extend this year's rally, already the biggest since 1997.
Futures for the S&P 500 were falling 0.44%, to 1,678.75.
U.S. stocks dropped on Friday as the Dow Jones Industrial Average booked its first weekly decline in seven weeks.Japan's gross domestic product grew an annualized 2.6% in the second- quarter, according to a government report, short of 3.6% average forecast of economists in a Bloomberg survey. "The weaker than expected GDP print puts more pressure on the government's decision over whether to hike sales taxes in April 2014," Jim Reid, a strategist at Deutsche Bank, wrote in a note on Monday morning discussing the outlook for Japan and government policymakers. U.S. economic data was light for Monday as traders were anticipating the U.S. Treasury to post the monthly budget report for July. Economists polled by Thomson Reuters were expecting a federal budget deficit of $96 billion in July after printing a $116.5 billion surplus in June. In company news, shares of Apple (AAPL) were adding 0.59% to $457.12 after reports emerged during the weekend that the maker of iPads is planning to launch the next version of its iPhone on Sept. 10. Apple last unveiled a new iPhone at an event on Sept. 12, 2012. European markets were sinking on Monday. The FTSE 100 in London was off 0.36%, and the DAX in Frankfurt was sliding 0.38%. Asian markets closed mixed overnight. Japan's Nikkei average dropped 0.71% to 13,519 after the weaker-than-expected GDP report. Hong Kong's Hang Seng climbed 2.13% to 21,271. The benchmark 10-year was adding 5/32, diluting the yield to 2.565%. The dollar was adding 0.39%, according to the
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- 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 + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV