1/30/2012 6:34 AM ET
(RTTNews) - Wall Street seems to have turned pessimistic, as indicated by the U.S. index futures, which point to a negative opening on Monday. The deterioration of sentiment stems from apprehension ahead of key risk events this week and the developments in the euro zone. France has opted to unilaterally implement a financial transaction tax and the European Union leaders are meeting today in Brussels to discuss a fiscal compact and the Greek situation. Meanwhile, Italy successful auctioned bonds at benign terms.
As of 6:30 am ET, the Dow futures are receding 74 points, the S&P 500 futures slipping 8.30 points and the Nasdaq 100 futures are slipping 15.50 points.
U.S. stocks scrambled to a mixed close in the week ended January 27th after advancing for three straight weeks. The FOMC announcement of last week and some promising earnings reports helped prevent further damage amid concerns over the still unresolved nature of the Euro zone debt crisis.
Domestically, several first-tier economic reports are due in the unfolding week and these reports could provide further clarity into the economic outlook. The monthly non-farm payrolls report for January, a private sector job report by ADP, considered a precursor for the former, the results of the Institute for Supply Management's manufacturing and non-manufacturing surveys, a regional manufacturing survey, the weekly jobless claims report and the Conference Board's consumer confidence report are among the market moving reports of the week.
Traders may also focus on the S&P Case-Shiller house price index for November, the Commerce Department's construction spending and factory goods orders reports for December and announcements concerning the Treasury auctions of 3-year and 10-year notes and 30-year bonds. The fourth quarter employment cost index, the preliminary fourth quarter productivity and costs report and a couple of Fed speeches round up the economic events of the week.
The Bureau of Economic Analysis is due to release its personal income & outlays report for December at 8:30 am ET. Economists expect that personal income as well as personal spending rose 0.1 percent each from the previous month.
In corporate news, Thomas & Betts (TNB) announced a deal to be acquired by Swiss engineering giant ABB for $3.9 billion in cash. The company also announced that its fourth quarter adjusted earnings from continuing operations rose 30 percent to $1 per share on 13.4 percent sales growth to $603.6 million. For 2012, the company expects sales growth to be in the mid single digit range and operating earnings of $3.90-$4.20 per share. The fourth quarter results exceeded estimates, while the 2012 guidance was in line with estimates.
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