Plus   Neg

Wall Street Set To Continue Tentative Run Amid Economic Worries


Wall Street sentiment remains subdued, as a host of economic worries remain unsettled. Although some domestic economic numbers have given hopes that recovery will not be derailed, the economy is far from being in the comfort zone. Meanwhile, European debt worries linger, with the threat of disintegration of the eurozone remaining an overhang on the markets for some time now. Chinese slowdown has also posed a threat, given the influence the nation is wielding on the global economy. The markets have very little catalysts to lend them a direction in the session and consequently, the lackluster run could continue.

As of 6:30 am ET, the Dow futures are slipping 59 points, the S&P 500 futures are moving down 6.80 points and the Nasdaq 100 futures are declining 10 points.

U.S. stocks reversed course in the week ended September 21st, snapping its weekly advances, as post-stimulus blues set in. For the week, the Dow Industrials lost 0.10 percent and the S&P 500 Index fell 0.38 percent, while the Nasdaq Composite Index slid 0.13 percent.

In the unfolding week, the spotlight is likely to be on the Commerce Department's new home sales report and the house price surveys of S&P Case-Shiller and the Federal House Finance Agency. Also among the widely watched reports are the consumer sentiment surveys of the Conference Board and the Reuters/University of Michigan combine, durable goods orders report for August, the results of the ISM-Chicago's manufacturing survey for September, the Commerce Department's personal income and spending report for August and the weekly jobless claims report.

The results of some lesser important regional manufacturing surveys, the final second quarter GDP estimate and the results of the Treasury auctions of 2-year, 5-year and 7-year notes round up the Main Street events of the week.

Dallas Federal Reserve is scheduled to release the results of its manufacturing survey at 10:30 am ET. The index is expected to improve to 0.5 in September from -1.6 in August. San Francisco Federal Reserve Bank President John Williams is due to speak to the S.F. City Club Roundtable at 3:10 pm ET.

Apple (AAPL) has sought $707 million in additional damages from rival Samsung for infringing patents related to its iPhone. CBRE (CBG) said it has acquired its affiliate company in Vietnam in order to strengthen its Asia Pacific platform.

Safeway (SWY) said it has recalled ground beef products imported from Canada by XL Foods due to possible E.coli contamination. The company noted that the recall is in co-operation with the USDA Food Safety Information Service's public health alert.

DISH Network (DISH) said it has reached a new multi-year agreement with FOX, the owner of Big Ten Networks, for the rights to resume the broadcast of Big Ten Network. The new agreement follows the expiry of an old one on September 14th.

Watson (WPI) issued a nationwide voluntary recall of two lots of Hydrocodone Bitartate and APAP Tablets, USP 10 mg/500 mg. The recall was based on a customer complaint received for the tablets that were thicker and darker share than the other tablets.

Paychex (PAYX) and Red Hat (RHT) are among the companies due to release their quarterly results after the markets open.

Most Asian markets declined, with the exception of the Chinese, Taiwanese and South Korean markets. Sentiment was impacted by comments concerning slackening growth in China and also the disagreement between German Chancellor Angela Merkel and French President Francois Hollande over the timing of introduction of a banking union.

Japan's Nikkei 225 average languished below the unchanged line throughout the session before closing moderately lower. The market also suffered due to a stronger yen, which hit export stocks of the region.

Australia's All Ordinaries ended down 21.60 points or 0.49 percent at 4,409. Meanwhile, Hong Kong's Hang Seng closed at 20,695, down 40.24 points or 0.19 percent. China's Shanghai Composite staged a late session recovery on hopes of policy actions after People's Bank of China official commented that he saw no signs of a rebound in the third quarter and domestic investment is unlikely to expand dramatically in the short term.

European stocks are also retreating after recovering on Friday on hopes that Spain will request for a bailout after adopting austerity measures. A survey by the Ifo Institute showed that German business sentiment declined for the fifth straight month in September. The business climate index based on the survey declined to 101.4 in September from 102.3 in August. Economists had expected the index to have remained unchanged at 102.3.

by RTTNews Staff Writer

For comments and feedback: editorial@rttnews.com

Market Analysis

Follow RTT