Early indications suggest that Wall Street may open Thursday's session lower in the aftermath of weak Chinese manufacturing and eurozone private sector activity data. Ignoring the Chinese data, the Japanese and Chinese markets settled at fresh multi-year highs, while the European markets are moving to the downside on the weak domestic private sector data and mixed domestic earnings reports. The domestic markets apart from focusing on these catalysts could also eye new home sales data and earnings from companies such as PepsiCo. (PEP), General Motors (GM), Caterpillar (CAT) and 3M Co. (MMM).
At 6:15 am ET, the Dow futures are receding 41 points, the S&P 500 futures are moving down 4.25 points and the Nasdaq 100 futures are declining 8.50 points.
U.S. stocks advanced solidly on Wednesday, benefiting from positive existing home sales data and some positive corporate tidings.
On the economic front, the Labor Department is due to release its weekly jobless claims report for the week ended April 18th at 8:30 am ET. Economists expect jobless claims to have declined to 286,000 from 294,000 in the previous week.
Markit is set to release its flash estimate of the U.S. manufacturing index for April at 9:45 am ET. The consensus estimate calls for am increase in the index to 56 in April from 55.3 in March.
The Commerce Department is scheduled to release its new home sales report for March at 10 am ET. Economists expect new home sales to come in at a seasonally adjusted annual rate of 518,000 compared to a 539,000-unit rate in February. The Treasury is due to make announcements concerning the auctions of 2-year, 5-year and 7-year notes at 11 am ET.
In corporate news, Facebook's (FB) first quarter earnings exceeded estimates, while its revenues were shy of estimates. EBay (EBAY) reported first quarter earnings and revenues that topped estimates. The company lowered its full year revenue guidance, which is below the consensus estimate.
Texas Instruments (TXN) reported below consensus earnings and revenues for its first quarter and its second quarter guidance was weak as well. AT&T (T) reported better than expected first quarter results, while its revenues were shy of estimates.
Qualcomm (QCOM) reported second quarter adjusted earnings and revenues that exceeded estimates. However, the company lowered its guidance for the full year.
Seagate Technology (STX) announced that its board authorized the buyback of up to $2.5 billion shares. Las Vegas Sands (LVS) reported first quarter results that trailed estimates. ARRIS (ARRS) announced a cash and stock deal to buy Pace (PIC) for $2.1 billion.
Altera (ALTR), Amazon.com (AMZN), BJ Restaurants (BJRI), E*TRADE (ETFC), Google (GOOG), Hanesbrands (HBI), Healthways (HWAY), Juniper Networks (JNPR), KLA-Tencor (KLAC), Maxim Integrated (MXIM), Microsoft (MSFT), NETGEAR (NTGR), Pandora Media (P), Starbucks (SBUX), Unisys (UIS) and Verisign (VRSN) are among the companies due to release their quarterly results after the close of trading.
The Asian markets closed on a mixed note, with traders weighing the positive close on Wall Street overnight and weak manufacturing data out of China. The Hong Kong, New Zealand, Indian, Malaysian and Indonesian markets moved to the downside, while the rest of the major markets advanced, with the South Korean and Taiwanese markets seeing notable strength.
The Japanese market advanced amid optimistic expectations concerning domestic earnings and the weakening of the yen. The Nikkei 225 average ended up 53.75 points or 0.27 percent at a fresh 15-year high of 20,188. Australia's All Ordinaries closed 7.50 points or 0.13 percent higher at 5,820. China's Shanghai Composite Index added 16.10 points or 0.36 percent before ending at 4,415, while Hong Kong's Hang Seng Index ended at 27,828, up 106.15 points or 0.38 percent.
On the economic front, the results of a survey by Markit and HSBC showed that the Chinese manufacturing activity continued to contract in April, dropping to a 12-month low. The manufacturing PMI fell to 49.2 from 49.6.
European stocks are retreating sharply amid reaction to domestic and U.S. earnings, insipid eurozone private sector activity data and lackluster Chinese manufacturing data even as the Greek crisis continues to remain an overhang.
In corporate news, Novartis (NVS) reported better than expected first quarter earnings and confirmed its guidance for operating earnings and sales growth for the year. Dragging by lower U.S. network spending, Sweden's Ericsson (ERIC) reported first quarter earnings that missed estimates. Pernod-Ricard reported strong revenue growth, helped by positive currency translation effect. WPP reported a slowdown in sales for its first quarter but it is on track to meet its full year guidance.
On the economic front, Markit's survey revealed that private sector activity in the euro area decelerated from an 11-month high in April. The flash composite PMI unexpectedly fell to 53.5 from 54, while it was expected to improve to 54.4. The manufacturing PMI declined 0.3 points to 51.9 and the service sector PMI fell 0.5 points to 53.7.
U.K. retail sales declined unexpectedly in March due to a decline in non-food store sales, data from the Office for National Statistics showed. Retail sales, including auto fuel dropped 0.5 percent month-over-month in March, reversing a 0.6 percent rise in February. This marked the first drop in six months. Economists had forecast a 0.4 percent rise for March.
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