Early indications suggest that Wall Street stocks may open Monday's session lower, as the global markets reel under risk aversion. After Asian stocks closed mixed, the European markets are notably lower. The release of some key U.S. data during the week, including the non-farm payrolls reading, and a few Fed speeches have rendered the mood cautious, even as traders strive to get some clarity on the U.S. monetary policy outlook. The dollar is mixed but commodities are seeing weakness. The mood in the domestic markets may also hinge on reaction to personal income and spending and pending home sales data due for the day.
At 6:15 am ET, the Dow futures are declining 59 points, the S&P 500 futures are receding 7.50 points and the Nasdaq 100 futures are moving down 19.50 points.
U.S. stocks ended lower in the week ended September 25th, as uncertainty over economic growth and monetary policy continued.
The unfolding week is strewn with a host of market moving economic data and speeches that could clarify the monetary policy outlook further. Traders could sift through some first-tier economic data, including the Commerce Department's personal income and spending report for August, the Conference Board's consumer confidence index for September, the Labor Department's monthly non-farm payrolls report for September, ADP's private payrolls report for September, jobless claims data, the National Association of Realtors' pending home sales report for August and the results of the Institute for Supply Management's manufacturing survey for September.
Several Fed speeches scheduled for the week, including a public appearance by Yellen, could also take the spotlight in the unfolding week. The results of S&P/Case-Shiller house price survey for July, the results of MNI's Chicago business barometer survey for September, the Commerce Department's construction spending and factory orders reports, both for August, and announcements concerning the Treasury auctions of 3-year and 10-year notes and 30-year bonds round up the economic events of the week.
Ahead of the market open at 7:45 am ET, New York Federal Reserve Bank President William Dudley is due to be interviewed by the Wall Street Journal.
The Commerce Department is scheduled to release its personal income and spending report for August at 8:30 am ET. Economists expect personal income and spending growth of 0.4 percent and 0.3 percent month-over-month, respectively. The core price consumption expenditure index is expected to rise 0.1 percent month-over-month.
The National Association of Realtors is due to release its pending home sales data for August at 10 am ET. The consensus estimate calls for a 0.5 percent month-over-month increase in pending home sales.
Dallas Federal Reserve is due to release the results of its regional manufacturing survey at 10:30 am ET. Economists expect the general activity index to improve to -9 in September from -15.8 in August. Chicago Federal Reserve Bank President Charles Evans will speak on monetary policy in Milwaukee at 1:30 pm ET. San Francisco Federal Reserve Bank John Williams is set to speak to the UCLA Anderson Forecast conference in Los Angeles at 5 pm ET.
In corporate news, NBCUniversal, a division of cable television giant Comcast (CMCSA, CMCSK), said it agreed to buy 51 percent ownership of Universal Studios Japan for 183 billion Japanese yen or $1.5 billion.
The Asian markets closed mixed, as indecision still haunted traders at the start of a data-heavy week. The Japanese, Indian, Indonesian, Singaporean and Malaysian markets retreated, while the Australian, New Zealand and Chinese markets advanced. The Hong Kong, Taiwan and South Korean markets remained closed for public holidays.
The Japanese market retreated as the yen was firmer in Asian trading. The Nikkei 225 average opened lower and continued to trade below the unchanged line in a broad range before ending down 235.40 points or 1.32 percent at 17,645.
China's Shanghai Composite, which spent the better part of the session below the unchanged line, recovered in late trading, ending up 8.41 points or 0.27 percent at 3,101. Meanwhile, Australia's All Ordinaries advanced steadily until the afternoon after a nervous start. Thereafter, the average moved sideways before ending up 68.40 points or 1.35 percent at 5,145.
On the economic front, final data released by Japan's Cabinet Office showed that the leading economic indicators index for Japan fell less than initially estimated in July. The leading economic indicators index fell to a 4-month low of 105 in July from 106.7 in June, upwardly revised from the 104.9 reported initially. The coincident economic indicators index was also upwardly revised to 113.1.
Industrial profits in China declined in August, as product prices continued to decrease, the National Bureau of Statistics reported. Industrial profits fell 8.8 percent in August from a year ago following a 2.9 percent drop in July. Falling product prices as well as lower return on investment weighed on industrial profits.
European stocks opened on a sour note and have retreated sharply in late morning trading, as risk aversion ahead of a data-heavy weak is leading to a sell-off.
In corporate news, Shell (RDS) said it would abandon further exploration at the Burger J Well in the north west coast of Alaska. The company noted that the carrying value of its Alaska position is about $3 billion in the balance sheet.
Merck KGaA said it is on track to complete the acquisition of life science company Sigma-Aldrich and is in the process of fulfilling antitrust commitments to the European Commission. The deal valued at about $17 billion was announced in September 2014.
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