The major U.S. index futures are pointing to a lower opening on Wednesday, with sentiment reflecting apprehensions as global growth concerns continue to weigh on markets. Chinese manufacturing data, despite indicating stabilization, wasn't anything to cheer about and so was the eurozone manufacturing data. The OECD report released earlier today cautioned of countries falling into low debt trap.
Among the rest of the markets, crude oil is weaker but most commodities are higher as the dollar has lost ground. That said, the pound is taking a beating from fears of Brexit. The domestic markets could keep an eye on domestic manufacturing data and monthly auto sales results. U.S. stocks moved about in a lackluster manner on Tuesday amid profit taking and ended on a mixed note. Mixed data points and a retreat in commodity prices exerted downward pressure on the markets. The major averages opened higher, with the S&P 500 Index and the Dow Industrials holding above the unchanged line till late morning trading. The indexes retreated into negative territory and fell roughly steadily until late trading. Although they trimmed some of their losses in late trading, they ended in negative territory. The Nasdaq Composite held above the unchanged line for much of the session but for a brief period in late afternoon trading. The Dow Industrials ended down 86.02 points or 0.48 percent at 17,787 and the S&P 500 Index closed 2.10 points or 0.10 percent lower at 2,097, while the Nasdaq Composite added 14.55 points or 0.29 percent before ending at 4,948. Twenty of the thirty Dow components closed lower, while the remaining ten stocks advanced. Boeing (BA), DuPont (DD) and Nike (NKE) were among the biggest decliners of the session. However, Microsoft (MSFT) rose strongly. Among the sectors, biotechnology, computer hardware and gold stocks gained ground. On the economic front, the Conference Board reported that consumer confidence receded in May, with the corresponding indicator sliding to 92.6 from a revised 94.7 in April. The present situation index fell to 117.1 from 112.9 and the expectations index slipped to 79 from 79.7. Consumers' assessment of current as well future business conditions and the labor market worsened. MNI Indicators released the results of its Chicago-area business survey, showing an unexpected contraction in May. The Chicago business barometer fell to 49.3 in May from 50.4 in April, while economists expected a reading of 50.7. New orders, order backlogs, production and inventories were all in contraction. Meanwhile, the Commerce Department reported that personal spending rose 1 percent month-over-month in April, the biggest increase since August 2009. Economists expected a 0.7 percent increase for the month. Vehicle sales propped up spending on durable goods. Spending on services also rose a decent 0.6 percent. Personal income climbed 0.4 percent, in line with estimates. The core price consumption expenditure index was up 0.2 percent month-over-month and was 1.6 percent higher than a year-ago, the same pace of growth as in March. The S&P/Case Shiller house price survey showed that house prices increased at a faster pace in March, both compared to the previous month and the previous year. Currency, Commodity Markets Crude oil futures for July delivery are slipping $0.51 to $48.59 a barrel after declining $0.23 to $49.10 a barrel on Tuesday. Meanwhile, an ounce of gold for August delivery is currently trading at $1,220.50, up $3 from the previous session's close of $1,217.50. On Tuesday, gold rose $0.80. On the currency front, the U.S. dollar is trading at 109.28 yen compared to the 110.73 yen it fetched at the close of New York trading on Tuesday. Against the euro, the dollar is valued at $1.1174 compared to yesterday's $1.1132. Asia The Asian markets closed mixed yet again, as commodities continued to see weakness, the yen strengthened, Chinese manufacturing data hurt sentiment and Wall Street's lackluster close pressured stocks. The Australian, Chinese, Hong Kong, Japanese, New Zealand and South Korean markets retreated, while the rest of the major markets advanced. The yen's upward move to below the 110-yen level against the dollar led to the Japanese market snapping its 5-session winning streak. The Nikkei 225 Index opened lower and moved sideways until late trading. After declining steeply, the index ended below the 17,000 psychological barrier at 16,956, down 279.25 points or 1.62 percent. A majority of stocks declined in the session. Australia's All Ordinaries Index opened lower and fell steeply in early trading. Subsequently, the index moved roughly sideways in a range. The index ended down 52.60 points or 0.97 percent at 5,395, declining for a second straight session. The market witnessed broad based weakness, with material, energy, financial, consumer staple and telecom stocks seeing marked weakness. China's Shanghai Composite Index settled at 2,914, down 3.11 points or 0.11 percent, and Hong Kong's Hang Seng Index closed 54.11 points or 0.26 percent lower at 20,761. On the economic front, the results of a survey by Markit and Caixin showed that manufacturing activity in China continued to contract in May, with a score of 49.2 versus 49.4 in April. The reading was in line with estimates. Official data released by the National Bureau of Statistics showed that Chinese manufacturing activity remained steady in May. The manufacturing PMI remained at 50.1 and the non-manufacturing index edged down 0.4 points to 53.1. The Australian Bureau of Statistics reported that Australia's economy grew 3.1 percent year-over-year in the first quarter, faster than the 2.8 percent increase expected by economists and the 3 percent growth in the fourth quarter of 2015. Meanwhile, the results of a survey by the Australian Industry Group showed that manufacturing activity expanded at a markedly slower pace in May. The PMI came in at 51, down from 53.4 in April. A report released by Japan's Ministry of Finance showed that capital spending in Japan rose 4.2 percent sequentially in the first quarter, more than the 2.4 percent increase expected by economists. Excluding software, capital spending was up a better than expected 4.3 percent. Company profits slipped 9.3 percent compared to the 3.3 percent drop in sales. Final estimates released by Markit/Nikkei showed that the Japanese manufacturing sector contracted at a steeper rate in May. Europe European stocks opened lower but turned volatile immediately after. The U.K.'s FTSE 100 Index continues to languish in the red, with selling pressure intensifying gradually. Despite a short-lived recovery in late morning trading, the French CAC 40 Index and the German DAX Index are both currently lower. In major corporate news, Wolseley reported higher third quarter pre-tax profits and sales but warned that the revenue growth trend is weaker. On the economic front, Markit reported that the eurozone manufacturing PMI fell to a 3-month low of 51.5 in May following a score of 51.7 for April. The reading was in line with estimates. However, the U.K. manufacturing sector moved back into expansion territory in May, according to the results of a survey by Markit and the CIPS. The index rose to 50.1 from 49.4 in April, while economists expected a reading of 49.6. The British Retail Consortium reported that shop prices in the U.K. fell 1.8 percent year-over-year in May following a 1.7 percent decline in April. Data released by the Bank of England showed that mortgage approvals in the U.K. fell to near a 1-month low in April. Consumer credit rose less than expected in April. Money supply grew at a slower year-over-year pace of 1 percent in April. U.S. Economic Reports Automakers are set to release their monthly auto sales results for May. Economists expect vehicles sales to come in at a seasonally adjusted annual rate of 17.4 million, the same as in April. Markit is due to release the final estimate of its U.S. manufacturing index for May at 9:45 am ET. The consensus estimate calls for a reading of 50.5, unchanged from the flash estimate but down from 50.8 in April. The Institute for Supply Management is scheduled to release the results of its national manufacturing survey for May at 10 am ET. Economists expect the index to slip to 50.6 from 50.8 in April. The manufacturing PMI fell to 50.8 in April from 51.8 in March, while economists expected a reading of 51.5. The new orders index fell 2.5 points but remained robust at 55.8. Despite declining 0.9 points, the production index was at 54.2. The order backlogs index was at 50.5. However, the employment index remained below the breakeven level at 49.2, though up 1.1 points. Also at 10 am ET, the Commerce Department is due to release its construction spending report for April. Economists expect a 0.6 percent month-over-month increase in construction spending.
The March report showed a 0.3 percent month-over-month increase in spending, smaller than the 0.5 percent increase expected by economists. However, the February reading was upwardly revised to show a 1 percent increase compared to the 0.5 percent drop reported initially. Residential construction spending climbed 1.6 percent and non-residential construction spending was up 0.7 percent.
The Federal Reserve will release its Beige Book report at 2 pm ET. The report is a compilation of anecdotal evidence of economic conditions in the twelve Fed districts. Stocks in Focus Alibaba (BABA) announced that it has agreed to purchase $2 billion worth of its stock from SoftBank. Staples (SPLS) announced that its CEO Ron Sargent will quit after its annual shareholder meeting on June 14th, 2016. The CEO role is to be assumed on an interim basis by Shire Goodman, the president of the company's North American operations. TiVo (TIVO), which has agreed to be acquired by Rovi (ROVI), reported below-consensus first quarter bottom line results and a decline in total revenues, although service and software and technology revenues improved. The company's guidance for 2017 was in line.
Cracker Barrel (CBRL) reported better than expected third quarter adjusted earnings per share, while its revenues missed expectations. Citing, year-to-date performance and recent trends, the company raised its full year earnings per share guidance. NCI Building Systems (NCS) reported better than expected second quarter adjusted earnings per share and higher sales. The company sees growth in gross margin and adjusted EBITDA in 2016. Under Armour (UA) revised its 2016 outlook due to the bankruptcy filing by Sports Authority. The company lowered its net revenue and operating income guidance for 2016 and its operating income guidance for the second quarter. Waste Connections (WCN) and Progressive Waste Solutions (BIN) announced that their pending merger is expected to be completed on June 1st, 2016. Boyd Gaming (BYD) said it has agreed to sell its 50 percent interest in Marina District Development Holding, the parent of Borgata Hotel Casino & Spa in New Jersey to MGM Resorts (MGM) for $900 million and a 50 percent share in any future property tax settlement benefits. Boyd Gaming expects to receive $600 million in net cash proceeds. Krispy Kreme (KKD), which agreed early this month to go private, reported first quarter adjusted earnings per share that exceeded estimates. The company's sales rose modestly. HanesBrands (HBI) updated its 2016 guidance to reflect contributions from a pending acquisition and debt financing. The company raised its sales and non-GAAP earnings per share guidance, while lowering its GAAP earnings per share guidance. The revenue guidance is upbeat and non-GAAP earnings per share guidance is in line.
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December 19, 2025 15:10 ET U.S. inflation data and interest rate decisions by major central banks were the highlights of this busy week for economics news flow. Employment data and survey results on the housing markets also gained attention in the U.S. In Europe, the European Central Bank and Bank of England announced their policy decisions and macroeconomic projections.