U.S. stock futures were pointing lower on Monday, extending losses from last week as Japan's GDP growth decelerated in the second quarter, coming in below Street estimates.
Futures on the three main U.S. market indices were down between 0.3% and 0.4%.
Japan's economic expansion rate decelerated in the second quarter to an annualized 2.6% from 3.8% in the first quarter, falling short of estimates for 3.6% growth, and intensifying the debate about a proposed increase in sales tax. The news hurt U.S. stock futures, as well as Europe stocks, while the Nikkei 255 index in Japan closed down 0.7%.
The Shanghai Composite Index in China, however, climbed 2.4% on Monday as China is reportedly offering "unofficial economic stimulus" to major cities and provinces in order to maintain growth. The Agricultural Bank of China has signed a deal to provide Shanghai with a loan of 250B yuan ($40.7B), including for a free-trade zone.
U.S. stocks are coming off a week of losses, as the Dow broke a six-week weekly win streak, to close the week down 1.5%, with several Fed officials commenting that the tapering of stimulus could come as soon as next month.
On a quiet day for economic reports in the U.S. Monday, with just the Treasury budget scheduled for this afternoon, investors will likely focus on news abroad, and corporate items.
On the corporate front, earnings seasons is winding down, with retail likely to be a focus area for the markets over the next two weeks, as just over half of the companies in the S&P 500 index, 20 of 39, that are scheduled to report earnings for the second quarter during this time frame are retailers. According to data from FactSet, since July 31, analysts have increased earnings estimates for companies in the apparel retail sub-industry, and have lowered estimates for department store companies.
Of the 450 companies that have reported earnings to date for the second quarter, 72% have topped earnings estimates, slightly below the average of 73% recorded over the past four years, while 54%of companies have reported sales above estimates, also below the 58% average. According to the report, if 54% is the final percentage, it will mark just the second time in the past five quarters that more companies beat sales estimates than missed sales estimates.
In stock news, Rockwell Collins (NYSE:COL) has agreed to acquire flight systems company Arinc from Carlyle for $1.39 billion, expected to make it a major player in the traffic control and airborne communications scene.
Delaware's Court of Chancery is scheduled to hold a hearing today over whether to fast track Carl Icahn's legal challenges to Michael Dell's and Silver Lake's bid to take Dell (NASDAQ:DELL) private.
BlackBerry (NASDAQ:BBRY) shares were halted premarket prior to the company reporting its board is exploring strategic alternatives, including joint ventures, partnerships and a sale after speculation last week the company was looking at being taken private.
J.C. Penney's (NYSE:JCP) board reportedly met over the weekend to consider taking action against Bill Ackman - the retailer's largest shareholder - after he made public his opposition to CEO Mike Ullman, urging for a speedy replacement.
According to reports, the U.S. attorney's office and the FBI are reportedly investigating JPMorgan (NYSE:JPM) over the bank's London Whaling loss, adding to action from the SEC.
Meanwhile, Reuters reported the Commodity Futures Trading Commission has subpoenaed an unnamed metals warehousing firm for all of its documents and communications related to the London Metal Exchange since January 2010, amid allegations that warehouse companies such as Goldman Sachs (NYSE:GS) have artificially boosted the price of metals, especially aluminum.
*Commodities *
Gold futures gained $14 to $1,326 an ounce, while oil for September fell 43 cents to $105.60 a barrel in electronic trade.
*Europe*
European markets were lower today with shares in Germany off the most. The DAX was lately down 0.36% while Britain's FTSE 100 was off 0.30% and France's CAC 40 was lower by 0.16%. Reported by Proactive Investors 3 hours ago.
Futures on the three main U.S. market indices were down between 0.3% and 0.4%.
Japan's economic expansion rate decelerated in the second quarter to an annualized 2.6% from 3.8% in the first quarter, falling short of estimates for 3.6% growth, and intensifying the debate about a proposed increase in sales tax. The news hurt U.S. stock futures, as well as Europe stocks, while the Nikkei 255 index in Japan closed down 0.7%.
The Shanghai Composite Index in China, however, climbed 2.4% on Monday as China is reportedly offering "unofficial economic stimulus" to major cities and provinces in order to maintain growth. The Agricultural Bank of China has signed a deal to provide Shanghai with a loan of 250B yuan ($40.7B), including for a free-trade zone.
U.S. stocks are coming off a week of losses, as the Dow broke a six-week weekly win streak, to close the week down 1.5%, with several Fed officials commenting that the tapering of stimulus could come as soon as next month.
On a quiet day for economic reports in the U.S. Monday, with just the Treasury budget scheduled for this afternoon, investors will likely focus on news abroad, and corporate items.
On the corporate front, earnings seasons is winding down, with retail likely to be a focus area for the markets over the next two weeks, as just over half of the companies in the S&P 500 index, 20 of 39, that are scheduled to report earnings for the second quarter during this time frame are retailers. According to data from FactSet, since July 31, analysts have increased earnings estimates for companies in the apparel retail sub-industry, and have lowered estimates for department store companies.
Of the 450 companies that have reported earnings to date for the second quarter, 72% have topped earnings estimates, slightly below the average of 73% recorded over the past four years, while 54%of companies have reported sales above estimates, also below the 58% average. According to the report, if 54% is the final percentage, it will mark just the second time in the past five quarters that more companies beat sales estimates than missed sales estimates.
In stock news, Rockwell Collins (NYSE:COL) has agreed to acquire flight systems company Arinc from Carlyle for $1.39 billion, expected to make it a major player in the traffic control and airborne communications scene.
Delaware's Court of Chancery is scheduled to hold a hearing today over whether to fast track Carl Icahn's legal challenges to Michael Dell's and Silver Lake's bid to take Dell (NASDAQ:DELL) private.
BlackBerry (NASDAQ:BBRY) shares were halted premarket prior to the company reporting its board is exploring strategic alternatives, including joint ventures, partnerships and a sale after speculation last week the company was looking at being taken private.
J.C. Penney's (NYSE:JCP) board reportedly met over the weekend to consider taking action against Bill Ackman - the retailer's largest shareholder - after he made public his opposition to CEO Mike Ullman, urging for a speedy replacement.
According to reports, the U.S. attorney's office and the FBI are reportedly investigating JPMorgan (NYSE:JPM) over the bank's London Whaling loss, adding to action from the SEC.
Meanwhile, Reuters reported the Commodity Futures Trading Commission has subpoenaed an unnamed metals warehousing firm for all of its documents and communications related to the London Metal Exchange since January 2010, amid allegations that warehouse companies such as Goldman Sachs (NYSE:GS) have artificially boosted the price of metals, especially aluminum.
*Commodities *
Gold futures gained $14 to $1,326 an ounce, while oil for September fell 43 cents to $105.60 a barrel in electronic trade.
*Europe*
European markets were lower today with shares in Germany off the most. The DAX was lately down 0.36% while Britain's FTSE 100 was off 0.30% and France's CAC 40 was lower by 0.16%. Reported by Proactive Investors 3 hours ago.