U.S. stock futures Wednesday fell anew, putting the S&P 500 in position for a sixth decline in a row, as concerns about rising corporate costs and a global economic slowdown buffeted Wall Street.
Investors also were set to digest a fresh round of earnings reports in a busy week for quarterly corporate results.
How did major benchmarks fare?
Futures for the Dow Jones Industrial Average
were trading 89 points, or 0.4%, lower at 25,155, those for the S&P 500 index
were slumping 12.70 points, or 0.5%, at 2,733.75, while the Nasdaq-100 futures
were sliding 36.25 points, or 0.5%, at 7,104. However, losses for futures were off the worst levels.
On Tuesday, the Dow
fell 125.98, or 0.5%, to 25,191.43 after being nearly 550 points intrasession. The S&P 500
shed 15.19 points, or 0.6%, to 2,740.69, while the Nasdaq Composite Index
slid 31.09 points, or 0.4%, to 7,437.54.
The S&P 500 is on the verge of falling for a sixth straight session and is off nearly 6% so far in October, the Dow is set to decline for a third straight day and has declined 4.8% thus far this month. Meanwhile, the Nasdaq, which has experienced a particularly volatile stretch among its peer benchmarks, is down 7.6% in October and is on the verge of slipping in correction territory, defined as a drop of at least 10% from a recent peak. The technology and internet-heavy index is down 8.3% from its Aug. 29 all-time high.
What drove the market?
In a busy week for earnings, some 150 companies were slated to report, including several megacap companies. Investors are seeking the degree to which higher interest rates are impacting the economy, as the Federal Reserve has indicated it will continue to tighten monetary policy by year’s end.
China’s recent stock market troubles and political drama in Europe surrounding Italy’s budget row with the European Union and Britain’s efforts to exit that trade bloc also have combined to hurt investor sentiment.
Wednesday’s early decline in futures come even as Europe’s complexion appeared to look a little better and Beijing stocks saw muted action, but a round of earnings is likely to offer more clarity for investors fretting about the U. S.economic outlook.
What were analysts saying?
“U.S. markets look set to open slightly lower after their late recovery off the lows with company earnings once again set to be the key driving force. Yesterday’s sell off on the back of the Caterpillar guidance was probably a little excessive, given that it was merely stating the obvious,” said Michael Hewson, chief market analyst at CMC Markets UK, in a Wednesday note.
Today’s focus will again return to the latest numbers from Ford , Microsoft and Visa.
Which data and Fed speakers are in focus?
- Markit flash readings for manufacturing and services for October are both due at 9: 45 a.m. Eastern Time
- A report on new home sales for September, with 620,00 new homes expected, is slated for 10 a.m.
- The Federal Reserve’s Beige Book is due at 2 p.m.
- Among Fed speakers, Cleveland Fed President Loretta Mester will be featured in a discussion at 1 p.m., while Federal Reserve Board Gov. Lael Brainard is slated to talk at a 7 p.m.
Which stocks were in focus?
Texas Instruments Inc.’s stock
was 6.9% lower in premarket after third-quarter results late.
Shares of United Parcel Service Inc.
dropped 1.9% in light premarket trade Wednesday, after the package delivery service met third-quarter profit expectations, but came up a bit shy on revenue.
and will be in the spotlight as Microsoft Corp.
will all be in the spotlight as the trio of megacap companies are set to report quarterly results before the opening bell.
Ford Motor Co.
also is set to deliver third-quarter results.
What were other markets doing?
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