Wall Street may be bracing for more losses on Thursday, as indicated by the U.S. index futures, which point to a steeply lower opening. Crude oil continues to trade lower, while the rest of commodities are firmer despite the dollar rising against most currencies, except the euro. The European markets are also trading notably lower after Asian stocks were sold-off. The Chinese market took another tumble after yesterday's rebound. The domestic markets, though pushed to the corner due to risk aversion, may react to economic data on jobless claims, regional manufacturing activity and existing home sales.
At 6:15 am ET, the Dow futures are slipping 127 points, the S&P 500 futures are down 14.50 points and the Nasdaq 100 futures are down 32 points.
U.S. stocks retreated yet again on Wednesday, as the outlook for Chinese growth and the U.S. Fed rates triggered weakness in the markets.
On the economic front, the Labor Department is set to release its weekly jobless claims data for the week ended August 15th at 8:30 am ET. Economists expect claims to have declined to 270,000 from 274,000 in the previous week.
The Philadelphia Federal Reserve is due to release the results of its business outlook survey for August at 10 am ET. The consensus estimate calls for an increase in the index to 7.5 from 5.7 in July.
Also at 10 am ET, the National Association of Realtors is scheduled to release its existing home sales report for July. Economists expect existing home sales to come in at a seasonally adjusted annual rate of 5.40 million units compared to a 5.49 million unit-rate in June.
Around the same time, the Conference Board is set to release its leading economic indicators index for June. Economists expect the index to rise 0.2 percent month-over-month.
In corporate news, Limited Brands (LB) reported in line second quarter earnings but below-consensus revenues. The company raised its earnings per share guidance for the full year. NetApp's (NTAP) first quarter results exceeded estimates, while its second quarter guidance was strong.
United Natural Foods (UNFI) released preliminary fourth quarter results, expecting better than expected earnings per share and revenues. The company also tightened its guidance range for the full year.
Semtech (SMTC) reported in line adjusted per share for its second quarter and better than expected revenues. However, the company issued weak guidance for the third quarter. Synopsys (SNPS) reported better than expected third quarter results but issued weak earnings guidance for the fourth quarter. However, the revenue guidance for the fourth quarter is strong. The company also tightened its full year earnings per share guidance by trimming the top end of the range.
Brocade (BRCD), Gap (GPS), Hewlett-Packard (HPQ), Intuit (INTU), Marvell (MRVL), Mentor Graphics (MENT), New York & Co. (NWY), Nordson (NDSN), Ross Stores (ROST), Salesforce.com (CRM), ScanSource (SCSC) and Tuesday Morning (TUES) are among the companies due to release their quarterly results after the close of trading.
The Asian markets fell across the board, reacting to the sell-off in commodities and the FOMC minutes offering little clarity on the first Fed rate hike. The Chinese market kept its tryst with its volatile ride and retreated sharply.
The Japanese market retreated as risk aversion lent support to the yen. The Nikkei 225 average languished below the unchanged line for much of the session before ending down 189.11 points or 0.94 percent at 20,034. Most sectors retreated, led by export stocks, although real estate stocks gained ground in the session.
Australia's All Ordinaries spent the entire session below the unchanged line before closing 84.30 points or 1.57 percent lower at 5,296. The market witnessed an across the board sell-off, with energy stocks being the worst hit.
Hong Kong's Hang Seng Index ended at 22,758, down 410.38 points or 1.77 percent, and China's Shanghai Composite Index slumped 129.82 points or 3.42 percent before ending at 3,664.
European stocks opened lower and have held below the unchanged line, although amid volatility. The European Stability Mechanism today disbursed 13 billion euros in funding to Greece, enabling the embattled nation make a 3.2 billion euro debt repayment due to the European Central Bank. The 13 billion euro disbursement is part of the first tranche of 26 billion euros approved by the ESM.
On the economic front, the U.K. Office of National Statistics reported that retail sales edged up 0.1 percent month-over-month, smaller than the 0.4 percent increase expected by economists. Annually, retail sales were a less than expected 4.2 percent. Excluding auto fuel, retail sales rose 0.4 percent month-over-month and were 4.3 percent higher than a year ago.
A report released by the German Federal Statistical Office showed that German producer prices fell 1.3 percent year-over-year in July following a 1.4 percent drop in June. The decline was in line with expectations. Excluding energy, producer prices were down 0.3 percent. On a monthly basis, producer prices were flat.
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