Sentiment on Wall Street has weakened further on Friday from the tentative mood that was witnessed in the previous two sessions. The major U.S. index futures point to a moderately lower opening. Earlier global markets succumbed to China worries after the world's second largest economy reported weak export and import data for July. With very little market moving catalysts ahead, the markets are likely to continue with their nervous run in the last trading session of the week. The retail space may see some action, given the earnings released by some big name companies in the sector.
As of 6:15 am ET, the Dow futures are slipping 42 points, the S&P 500 futures are receding 4.80 points and the Nasdaq 100 futures are moving down 6.50 points.
U.S. stocks moved about in a lackluster fashion yet again on Thursday before closing on a mixed note.
On the economic front, the export & import price indexes for July are due out at 8:30 am ET. The consensus estimates call for a 0.2 percent month-over-month decline in import prices and a 0.1 percent decline in export prices. In June, import prices and export prices were down 2.7 percent and 1.7 percent, respectively.
The Treasury Budget is due to be released at 2 PM ET. Economists expect a deficit of $103 billion for July compared to a deficit of $59.7 billion for June.
In corporate news, NVIDIA (NVDA) reported second quarter non-GAAP earnings of 27 cents per share on revenues of $1.04 billion. The results were ahead of estimates. The company expects third quarter revenues of $1.15 billion to $1.25 billion, ahead of the $1.09 billion consensus estimate.
Emulex's (ELX) preliminary fourth quarter results exceeded estimates, while its guidance was weak. DeVry (DV) reported fourth quarter adjusted earnings of 47 cents per share on revenues of $505.9 million, down 7.5 percent year-over-year. The earnings were ahead of expectations, while the revenues were slightly shy of estimates.
Nordstrom's (JWN) second quarter earnings slipped to 75 cents per share from 80 cents per share in the year-ago period. Meanwhile, total revenues rose to $3.01 billion from the year-ago quarter's $2.81 billion. The earnings beat estimates by a penny, while the revenues missed expectations slightly. The company upwardly revised its 2012 earnings guidance to $3.40-$3.50, which surrounded the consensus estimate of $3.45 per share.
Ralph Lauren (RL) said its board has authorized the repurchase of an additional $500 million worth of shares.
Brooks Automation (BRKS) reported below-consensus results for the third quarter, while it also issued a weak guidance for the fourth quarter.
The major Asian markets closed on a mixed note after Chinese trade data re-ignited growth worries. The Japanese, Australian, Chinese, Hong Kong, Indian and New Zealand closed lower, while the Taiwanese, South Korean, Singaporean, Malaysian and Indonesian markets moved to the upside.
Japan's Nikkei 225 average opened lower and moved sideways until the afternoon before legging down further thereafter. The index closed down 87.16 points or 0.97 percent at 8,89, snapping four days of gains. Australia's All Ordinaries closed down 27.30 points or 0.63 percent at 4,303. Most sectors, barring industrial stocks, showed weakness. Hong Kong's Hang Seng Index closed at 20,136, down 133.35 points or 0.66 percent.
Chinese exports grew just 1 percent year-over-year in July, decelerating from the 11.3 percent growth reported for June, according to data released by the General Administration of Customs. Economists had forecast 8 percent export growth. Imports also rose at a slower rate in July, up 4.7 percent compared to the 6.3 percent increase in June. Economists expected import growth to pick up to a 7 percent pace.
Final estimates released by Japan's Ministry of Economy showed that industrial output rose 0.4 percent month-over-month in June compared to the 0.1 percent increase estimated initially.
The major European markets are all moving lower after seeing lackluster sentiment on Thursday.
Re-insurer Hannover Re reported second quarter earnings that declined to 144 million euros from 166.2 million in the year-ago period, weighed down by hedging derivative losses. The earnings were below market expectations.
Meanwhile, U.K. insurer Prudential reported first half operating profit of 1.16 billion pounds, higher than 1.03 billion pounds reported last year.
German steel giant Thyssenkrupp reported third quarter-adjusted EBIT of 122 million euros, which was more than what most analysts had expected. The company also confirmed its adjusted EBIT target for the full year.
On the economic front, a report released by French statistical office INSEE showed that French industrial output remained unchanged in June from the previous month. Manufacturing output was up merely 0.1 percent. Economists had expected a 0.1 percent increase in industrial output and flat manufacturing output.
U.K. annual output price inflation eased to 1.7 percent in July from 2 percent in June. Economists had expected a steeper 2 percent increase in prices. At the same time, input prices fell 2.4 percent compared to the 1.5 percent drop expected by economists.
by RTT Staff Writer
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