Growth concerns are blanketing the global markets and Wall Street seems to be no exception. The U.S. index futures point to a moderately lower opening. Asian stocks fell across the board on a disappointing jobs report released by Australia and the Bank of Korea's unexpected rate cut. The developments triggered further anxiety among traders, who were already jittery about the growth prospects. Traders may also focus on the U.S. jobless claims data due for release before the markets open.
As of 6:15 am ET, the Dow futures are down 64 points, the S&P 500 futures are slipping 7.60 points and the Nasdaq 100 futures are declining 11.75 points.
On the economic front, the Labor Department is due to release its customary jobless claims report for the week ended July 7th at 8:30 AM ET. Economists expect claims to edge up to 375,000 from 374,000 in the previous week.
The Labor Department will also release its report on import and export prices for June around the same time. The consensus estimates call for a 1.9 percent month-over-month decline in import prices and a 0.2 percent decline in export prices.
The Treasury Budget, a monthly account of the surplus or deficit of the federal government, is due to be released at 2 PM ET. Economists expect a deficit of $75 billion for June compared to a deficit of $124.6 billion for May.
San Francisco Federal Reserve Bank President John Williams will also speak to the Community Leaders Luncheon sponsored by the San Francisco Federal Reserve Bank in Portland, Oregon at 3:40 pm ET.
In corporate news, Marriott International (MAR) reported second quarter earnings that came in line, while its revenues missed estimates. Worldwide REVPAR rose 7.2 percent. For 2012, the company expects earnings of $1.65-$1.75 per share, while it estimates earnings of 39-41 cents per share for the third quarter. The guidance was upbeat.
SUPERVALUE's (SVU) first quarter results trailed estimates. The company also increased its debt reduction target for 2013 to $450 million-$500 million. Additionally, the company withdrew its guidance and announced a suspension of its dividend payment.
In its interim update, Chevron said it expects second quarter earnings to be higher than the first quarter, as an estimated sequential increase in downstream is expected to a drop in upstream earnings, reflecting lower average crude oil prices.
Pentair (PNR) announced that the European Commission has cleared its proposed acquisition of the flow control business of Tyco International in a tax-free all-stock merger. The deal is yet to be vetted by the shareholders of both companies and other foreign regulatory approvals.
Callaway Golf (ELY) lowered its 2012 guidance citing slower than expected pace of recovery, with the company no longer expecting its full year results be significantly better than last year. The company also announced cost reduction initiatives, including a 12 percent reduction in its workforce, which is expected to generate $52 million in gross savings.
Ryder (R) announced 2 cents per share increase in its quarterly dividend to 31 cents per share.
AngioDynamics (ANGO) and Resources Connect (RECN) are among the companies due to release their quarterly results after the markets close.
The major Asian markets declined sharply, led by the Hong Kong and the South Korean markets. Most markets in the region were down for the sixth straight session, as growth concerns continued to preoccupy the minds of traders after the Bank of Korea cut its benchmark interest rate for the first time in more than 3 years. A lukewarm employment data from Australia and the Bank of Japan's decision not to add any stimulus measures also hurt sentiment.
Japan's Nikkei 225 average opened little changed, but declined throughout the session before closing down 130.99 points or 1.48 percent at 8,720.
The Bank of Japan tweaked its asset purchase program, moving to buy more treasury-discount bills, but kept its overall size of financial asset buying unchanged at 70 trillion yen. The central bank held off on further monetary easing measures, believing that robust private consumption and spending on rebuilding after last year's earthquake will keep the country's economic recovery on track.
Australia's All Ordinaries closed 29 points or 0.70 percent lower at 4,106. Meanwhile, Hong Kong's Hang Seng slid 394.76 points or 2.03 percent before closing at 19,025.
The European markets are also trading lower, with most major averages in the region trading moderately lower. Italy sold 7.5 billion euros in 12-month treasury bills, in line with its target. The cost of debt was lower than at an earlier auction, while demand was weaker.
In corporate news, French retailer Carrefour reported that its second quarter like-for-like sales fell 1.3 percent, with weak sales at its French hypermarkets and slacker consumer spending trends at debt-ravaged European countries hurting results.
In economic news, a report released by Eurostat showed that eurozone's industrial output rose 0.6 percent month-over-month in May following a 1.1 percent drop in April. Economists had expected a flat output.
by RTT Staff Writer
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