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

Market Hustle: Futures Sour on China Manufacturing Outlook

NEW YORK (TheStreet) -- U.S. stock futures were indicating a weak start for Wall Street on Thursday as investor sentiment soured on signs of a slowdown in China, the world's second-largest economy.

  • S&P 500 futures were slumping 5 points, or 5.41 points below fair value, to 1,833.5, Dow Jones Industrial Average futures were declining 55 points, or 47.34 points below fair value, to 16,262, Nasdaq futures were down 0.5 points, or 0.27 points below fair value, to 3,620.

  • Chinese manufacturing activity shrank in January for the first time in six months, according to the flash Markit/HSBC Purchasing Managers' Index. The preliminary report showed a decline to 49.6 from the final December figure of 50.5. "The credit crunch in the nation has compromised with growth objectives, triggering worldwide concerns," said Singapore-based Phillip Futures investment analyst Chee Tat in a note.

  • Earnings from McDonald's (MCD - Get Report) will be released before the opening bell. The hamburger giant is expected by analysts on Thursday to report fourth-quarter earnings of $1.39 a share on revenue of $7.11 billion.

    Must Read: Stocks Close Mixed as Coach, IBM Underscore High Valuations, Netflix Impresses

  • The economic calendar is busy, with initial jobless claims for last week at 8:30 a.m. EST, the January Markit "flash" PMI manufacturing index at 8:58 a.m., the November Federal Housing Finance Agency's housing price index at 9 a.m., December existing home sales at 10 a.m., and December leading indicators at 10 a.m. Jobless claims and existing home sales will be eyed most closely.

  • Jobless claims of 326,000 are expected, unchanged from preceding week. Existing home sales are forecast to have edged up to a seasonally adjusted annual pace of 4.94 million.

  • The Hong Kong Hang Seng closed off 1.51%, the Shanghai Composite fell 0.47%, the DAX dipped 0.21%, the U.K. FTSE slipped 0.09%, all dragged down by the poor China data.

  • IBM (IBM) shares were up 0.41% to $182.99 after China's Lenovo agreed to acquire IBM's x86 server business for $2.3 billion. eBay (EBAY) shares were popping more than 4% to $56.74. Activist investor Carl Icahn has taken a large stake in eBay and is calling for the company to spin off its highly successful payments division PayPal. Netflix (NFLX) was surging 16.26% to $388 after reporting better than expected fourth-quarter earnings and 33.42 million streaming subscribers for the quarter.

  • Starbucks (SBUX) is forecast to report fiscal first-quarter earnings on Thursday of 69 cents a share on sales of $4.29 billion. A year earlier, the coffee company earned 57 cents a share.

-- Written by Andrea Tse in New York.

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
MCD $129.33 0.00%
AAPL $94.19 0.00%
FB $118.06 0.00%
GOOG $695.70 0.00%
TSLA $222.56 0.00%


Chart of I:DJI
DOW 17,651.26 -99.65 -0.56%
S&P 500 2,051.12 -12.25 -0.59%
NASDAQ 4,725.6390 -37.5850 -0.79%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs