The trading in the U.S. index futures suggests that U.S. stocks may see weakness for a fourth consecutive session on Thursday. Asian stocks fell across the broad and the European markets are trading with notable losses. Growth fears and monetary policy outlook are currently the double risks weighing on markets. Nevertheless, the domestic markets may look for some respite from a duo of market moving reports on jobless claims and retail sales scheduled to be released ahead of the markets open.
As of 6:15 pm ET, the Dow futures are declining 58 points, the S&P 500 Index futures are down 6.50 points and the Nasdaq 100 futures are moving down 10.50 points.
U.S. stocks extended their slide to a third straight session on Wednesday, as monetary policy uncertainty continued to act as an irritant.
On the economic front, the Labor Department is due to release its jobless claims report for the week ended June 8th at 8:30 am ET. Economists expect claims to have increased to 350,000 from 346,000 in the previous week.
Around the same time, the Labor Department will also release its report on export and import price index for May. The consensus estimates call for a 0.1 month-over-month drop in export prices, while import prices may have remained unchanged in the month.
Also at 8:30 am ET, the Commerce Department will release its retail sales report for May. Economists expect a 0.5 percent month-over-month increase in retail sales and a 0.4 percent increase in retail sales, excluding autos.
The Commerce Department is also scheduled to release its business inventories report at 10 am ET. Economists expect a 0.3 percent month-over-month increase in business inventories.
In corporate news, PVH (PVH) reported first quarter results that exceeded estimates. The company reiterated its 2013 non-GAAP earnings per share guidance of $7 per share on revenues of $8.2 billion. The earning guidance was slightly shy of estimates, while the revenue guidance was above estimates.
H&R Block (HRB) reported fourth quarter results that were below estimates. Sprint (S) said it is evaluating the latest statement from Clearwire's (CLWR) board and will review any corresponding filings before determining its next steps. Meanwhile, DISH (DISH) extended the expiration of the previously announced tender offer to buy all Class A shares of Clearwire for $4.40 per share until 12 mid-night ET on July 2nd, 2013 from July 2nd, 2013.
AutoZone (AZO) said its board authorized the buyback of an additional $750 million shares in connection with its ongoing stock buyback program. Bard (BCR) said its board authorized a 5 percent increase in its quarterly dividend to 21 cents per share. The board also authorized a $500 million stock buyback program.
Safeway (SWY) said it has agreed to sell its Canadian operations through a sale of the net assets of Canada Safeway Limited to Sobeys for C$5.8 billion in cash, plus the assumption of some liabilities. The company intends to use the proceeds to pay $2 billion in debt and buy back stock. Men's Wearhouse (MW) reported better than expected first quarter results. For 2013, the company expects earnings of $2.70-$2.80 per share, surrounding the consensus estimate.
The Asian markets fell across the board, as risk aversion continued to rule the roost amid the continuing uncertainty concerning monetary policy outlook for the major global central banks and muted global growth forecast issued by the World Bank. The safe haven yen rallied, sending Japanese stocks sharply lower into the bear market territory, while the Australian market retreated despite the release of a fairly positive jobs report.
Japan's Nikkei 225 closed down 843.94 points or 6.35 percent at 12,445, its lowest level since April 3rd, 2013. All 225 of the index components closed lower, Nitto Boseki, Hino Motors, Softbank, Advantest and Nippon Kayaku leading the declines. Australia's All Ordinaries languished below the unchanged line throughout the session before closing down 31.20 points or 0.66 percent at 4,685.
Hong Kong's Hang Seng Index closed at 20,871, down 483.64 points or 2.26 percent. The Chinese market, which opened after a 3-day public holiday, lost 62.54 points or 2.83 percent before closing at 2,148.
On the economic front, a report released by the Australian Bureau of Statistics showed that the number of unemployed persons rose 1,100 in May from the previous month, while the economists. The increase was mainly due to brisker hiring of the volatile part time employee category. The jobless rate edged down 0.1 points to 5.5 percent, reflecting a decline in participation rate. The Reserve Bank of New Zealand left its official cash rate unchanged at 2.5 percent against a backdrop of an overvalued currency and a housing market bubble.
European stocks are declining sharply amid the intensification of risk aversion, with the indexes poised to close lower for the fourth straight session.
In corporate news, Royal Bank of Scotland (RBS) announced that its CEO Stephen Hester will step down at the end of the year. The U.K. government having an 82 percent stake in the bank is looking to offload those shares. The bank is also reportedly planning to eliminate about 2,000 jobs at its investment banking unit. Heidelberg reported a narrower loss for its full year, as sales improved modestly. The company also confirmed its full year target for fiscal year 2013.
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