Futures Slip as Manufacturing Falls

Stock futures were lower after manufacturing in the New York state region fell more than expected and investors turned cautious ahead of industrial production data.
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NEW YORK (

TheStreet

) -- Stock futures were pointing to a lower open Wednesday after manufacturing in the New York state region fell more than expected and investors turned cautious ahead of industrial production data.

Futures for the

Dow Jones Industrial Average

were lower by 45 points at 10,418 and were 42 points below fair value. Futures for the

S&P 500

were losing 5 points at 1110 and were 5 points below fair value, and

Nasdaq

futures were shedding 7 points to 1914 and were 12 points below fair value.

The

New York Fed's key manufacturing index that measures activity in the New York region dropped more than expected to 4.1 for early September from a reading of 7.1 in August. Economists had expected a smaller drop to 6.4, according to Briefing.com. A reading above zero indicates expansion.

Stocks snapped a four-day winning streak on Tuesday as weak economic data from Europe overshadowed

better-than-expected retail sales in the U.S.

On Wednesday, stocks will likely be influenced by the Japanese government's move to weaken the yen, which had been trading at a 15-year high against the dollar, for the first time since 2004. The U.S. dollar was surging 3% on Wednesday morning against the yen to trade at 85.61 yen.

Overseas,

Japan led Asian stocks higher on Wednesday on news of the yen intervention. The Nikkei soared 2.3%, outperforming other markets, as stocks of its biggest exporters soared. Other Asian markets also tracked Japan's rally, with Hong Kong's Hang Seng rising 0.1% and Taiwan's TAIEX gaining 0.4%.

European markets were trading weaker on Wednesday as concerns about the slowdown in the region resurfaced. Jobless claims in the U.K. increased for the first time since January. The FTSE in U.K. was trading lower by 0.4%, while the DAX in Germany was down 0.6%.

At 9:15 a.m. EDT, the

Federal Reserve

will release an index of industrial production and capacity utilization figures for August. Economists expect industrial production to climb 0.3% after rising 1% in July and capacity utilization to hover at 75%, according to estimates from Briefing.com.

At 10:30 a.m., the U.S. Energy Information Administration will release crude stockpiles data for the week ending Sept.10. The American Petroleum Institute said on Tuesday that the crude oil stock piles increased by 3.3 million barrels, a much more bearish number than the estimates from the Platts survey of analysts, which suggested a draw of 2.25 million barrels. Platts survey suggests gasoline stocks would fall 400,000 barrels and distillates stocks would increase 800,000 barrels.

In other news,

the tea party claimed a major victory in the Democrat-leaning state of Delaware, with Christine O'Donnell defeating Republican candidate Mike Castle in the primaries.

In corporate news,

Boeing

(BA) - Get Report

expects a ruling from the World Trade Organization Wednesday over a complaint from the European Union that the aerospace giant received some illegal subsidies from the U.S. government.

Microsoft

(MSFT) - Get Report

will unveil the latest version of its browser, the Internet Explorer, at a San Francisco event today.

MasterCard

(MA) - Get Report

announced

a $1 billion buyback late Tuesday ahead of its annual shareholder meeting later this month. The stocks rose to $202.55 in extended trading on Tuesday.

U.K. drugmaker

AstraZeneca

(AZN) - Get Report

said that the

U.S. Food and Drug Administration has extended the review of its blood thinner drug ticagrelor, which goes under the brand name Brilinta.

Savient Pharma

(SVNT)

received a FDA approval for its gout drug on Tuesday.

Beazer Homes

(BZH) - Get Report

in a press release on Wednesday said it expects a

slower-than-anticipated improvement in new-home orders after the expiration of the homebuyers' tax credit.

In commodity markets, crude oil for October delivery was losing $1.43, to trade at $75.37 a barrel ahead of crude inventory data. The December gold contract was lower by $3.20, trading at $1,268 an ounce, after rising to a new record on Tuesday.

The benchmark 10-year Treasury note was down by 10/32, raising the yield to 2.715%.

--Written by Shanthi Venkataraman in New York

.

Disclosure: TheStreet's editorial policy prohibits staff editors and reporters from holding positions in any individual stocks.