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Futures Point To Negative Bias For Wall Street At Open


Weekly jobless claims and Leading Indicators are the major announcements on economic front. Investors are keeping an eye on earnings report from corporates. Proctor and Gamble reported a positive earnings this morning with raised its outlook for 2020.

The spread of corona virus is reflected in the economic growth sentiments, and it might have an impact on travel sector in Asia Pacific region.

Asian shares shares finished lower, while European shares are trading down.

Early signs from the U.S. Futures Index clearly point to a broadly lower opening.

As of 8.05 am ET, the Dow futures were losing 63 points, the S&P 500 futures were down 4.00 points and the Nasdaq 100 futures were gaining 0.50 points.

The U.S. major averages finished Wednesday's session mixed. While the Dow edged down 9.77 points or less than a tenth of a percent to 29,186.27, the Nasdaq inched up 12.96 points or 0.1 percent to 9,383.77 and the S&P 500 crept up 0.96 points or less than a tenth of a percent to 3,321.75.

On the economic front, the Labor Department's Jobless Claims for the week will be issued at 8.30 am ET. The economists are looking for consensus of 213K while it was 204K in the previous week.

The Conference Board's Leading Indicators for December will be released at 10.00 am ET. The consensus is for a decline of 0.2 percent.

The Energy Information Administration or EIA's Natural Gas Report for the week will be published at 10.30 am ET. In the prior week, the change was decline of 109 bcf.

Kansas City Fed Manufacturing Index for the week will be revealed at 11.00 am ET. In the prior week, the level was negative 8.

Two year Floating Rate Note, Two year Treasury Note, Five Year Treasury Note as well as Seven Year Treasury Note announcements will be at 11.00 am. The 10-year Treasury inflation-indexed securities or TIPS auction will be held at 1.00 pm ET.

The Fed Balance Sheet for the week is expected at 4.30 pm ET. In the previous week, the level was $4.176 trillion.

The Fed Money Supply for the week is scheduled at 4.30 pm ET. The M2 weekly change was $1.9 billion.

In the Corporate sector, Procter & Gamble Co. reported 14 percent increase in second-quarter core earnings per share. Currency-neutral core earnings per share increased 15 percent. Second-quarter core earnings per share was $1.42 compared to $1.25, a year ago. Diluted net earnings per share were $1.41, up 16 percent from prior year.

For fiscal 2020, the company raised its guidance for core earnings per share growth from a range of five to ten percent to a range of eight to eleven percent. Also, the company increased its guidance for organic sales growth from a range of three to five percent to a range of four to five percent. Second-quarter net sales increased five percent to $18.2 billion from the comparable quarter.

Asian stocks fell on Thursday. Chinese shares plunged on concerns the deadly virus. The benchmark Shanghai Composite index tumbled 84.23 points, or 2.75 percent, to 2,976.53.

Hong Kong's Hang Seng index dropped 1.52 percent to 27,909.12.

Japanese shares hit two-week low. The Nikkei average fell 235.91 points, or 0.98 percent, to 23,795.44, while the broader Topix index closed 0.78 percent lower at 1,730.50.

Australian markets fell notably. The benchmark S&P/ASX 200 index dropped 44.70 points, or 0.63 percent, to 7,088, while the broader All Ordinaries index ended down 50 points, or 0.69 percent, at 7,199. Australia's inflation expectations increased in January, survey data from the Melbourne Institute showed today.

European shares are trading lower. CAC 40 of France is losing 8.94 points or 0.15 percent. DAX of Germany is declining 66.79 points or 0.49 percent. FTSE 100 of England is down 29.90 points or 0.39 percent. Swiss Market Index is sliding 43.37 points or 0.40 percent.

Euro Stoxx 50 that provides a Blue-chip representation of supersector leaders in the Eurozone, is lowering by 0.32 percent.

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