Post by jeffolie on Nov 5, 2013 8:17:52 GMT -6
Nov. 5, 2013, 9:01 a.m. EST
Stock futures drop on gloomy euro-zone growth view
NEW YORK (MarketWatch) — U.S. stock futures dropped on Tuesday after the European Commission revised lower its euro-zone growth forecasts and ahead of data on the U.S. nonmanufacturing sector and more speeches from Federal Reserve officials.
Futures for the Dow Jones Industrial Average fell 61 points, or 0.4%, to 15,514, while those for the Standard & Poor’s 500 index SPZ3 -0.42% slipped 6.5 points, or 0.4%, to 1,756.50. Futures for the Nasdaq 100 index NDZ3 -0.42% lost 11.5 points, or 0.3%, to 3,366.
Click to Play Taper Delay: How to invest in bonds nowWith the Fed on hold, bond prices seem to be going nowhere. Fixed-income writer Michael Aneiro sees opportunity in closed-end funds.
European stocks fell, with stock futures and the dollar index following south, after the European Commission cut its forecasts for economic growth and unemployment in the euro zone. Growth is now seen at 1.1% in 2014, versus a prior expectation of 1.2%, and unemployment is seen rising to 12.2% versus a previous forecast of 12.1%.
The Commission forecasts offered a chance to take some profits, said Joshua Mahony, research analyst at Alpari U.K. ”In terms of the euro-zone picture, what you’re looking at really is the fact that people have bought into this recent rally a bit too much. It was a bit overbought in the first place.”
Bloomberg
The European Central Bank will meet on Thursday, and there has been some speculation that it may cut rates after poor inflation figures last week. Keith R. McCullough, chief executive officer of Hedgeye Risk Management, said markets are overreacting to the Europe data. “On the margin, Europe has the stronger currencies and growth momentum now,” he said in emailed comments.
While European stocks have been trading at five-year highs, the S&P 500 index is also tapped to potentially finish 2013 with the biggest annual increase in 16 years.
The dollar index DXY +0.15% recovered somewhat from its initial hit on the EU data, but the British pound rose against the greenback GBPUSD +0.50% , jumping to over $1.60 after the Markit/CIPS U.K. Services PMI for October showed the biggest rise in activity in more than 16 years.
On the U.S. economic calendar, the Institute for Supply Management’s nonmanufacturing index for October is due at 10 a.m. Eastern time. Economists polled by MarketWatch expect the index to fall to 54% versus 54.4% in the prior month.
Two Fed speakers who are not voting members of the central bank’s policy-setting meeting are scheduled to talk. Richmond Fed President Jeffrey Lacker is due to give a speech in Charlotte, N.C. on workforce development at 1:15 p.m. Eastern. Later, San Francisco Fed President John Williams will speak to reporters during the bank’s Asia Economic Policy Conference at 5 p.m. Eastern.
Before the open, Boston Fed President Eric Rosengren said on CNBC that economic growth remains disappointing. On Monday, he suggested patience in deciding when to taper the central bank’s bond-buying program
www.marketwatch.com/story/stock-futures-drop-on-gloomy-euro-zone-growth-view-2013-11-05?link=MW_home_latest_news
Stock futures drop on gloomy euro-zone growth view
NEW YORK (MarketWatch) — U.S. stock futures dropped on Tuesday after the European Commission revised lower its euro-zone growth forecasts and ahead of data on the U.S. nonmanufacturing sector and more speeches from Federal Reserve officials.
Futures for the Dow Jones Industrial Average fell 61 points, or 0.4%, to 15,514, while those for the Standard & Poor’s 500 index SPZ3 -0.42% slipped 6.5 points, or 0.4%, to 1,756.50. Futures for the Nasdaq 100 index NDZ3 -0.42% lost 11.5 points, or 0.3%, to 3,366.
Click to Play Taper Delay: How to invest in bonds nowWith the Fed on hold, bond prices seem to be going nowhere. Fixed-income writer Michael Aneiro sees opportunity in closed-end funds.
European stocks fell, with stock futures and the dollar index following south, after the European Commission cut its forecasts for economic growth and unemployment in the euro zone. Growth is now seen at 1.1% in 2014, versus a prior expectation of 1.2%, and unemployment is seen rising to 12.2% versus a previous forecast of 12.1%.
The Commission forecasts offered a chance to take some profits, said Joshua Mahony, research analyst at Alpari U.K. ”In terms of the euro-zone picture, what you’re looking at really is the fact that people have bought into this recent rally a bit too much. It was a bit overbought in the first place.”
Bloomberg
The European Central Bank will meet on Thursday, and there has been some speculation that it may cut rates after poor inflation figures last week. Keith R. McCullough, chief executive officer of Hedgeye Risk Management, said markets are overreacting to the Europe data. “On the margin, Europe has the stronger currencies and growth momentum now,” he said in emailed comments.
While European stocks have been trading at five-year highs, the S&P 500 index is also tapped to potentially finish 2013 with the biggest annual increase in 16 years.
The dollar index DXY +0.15% recovered somewhat from its initial hit on the EU data, but the British pound rose against the greenback GBPUSD +0.50% , jumping to over $1.60 after the Markit/CIPS U.K. Services PMI for October showed the biggest rise in activity in more than 16 years.
On the U.S. economic calendar, the Institute for Supply Management’s nonmanufacturing index for October is due at 10 a.m. Eastern time. Economists polled by MarketWatch expect the index to fall to 54% versus 54.4% in the prior month.
Two Fed speakers who are not voting members of the central bank’s policy-setting meeting are scheduled to talk. Richmond Fed President Jeffrey Lacker is due to give a speech in Charlotte, N.C. on workforce development at 1:15 p.m. Eastern. Later, San Francisco Fed President John Williams will speak to reporters during the bank’s Asia Economic Policy Conference at 5 p.m. Eastern.
Before the open, Boston Fed President Eric Rosengren said on CNBC that economic growth remains disappointing. On Monday, he suggested patience in deciding when to taper the central bank’s bond-buying program
www.marketwatch.com/story/stock-futures-drop-on-gloomy-euro-zone-growth-view-2013-11-05?link=MW_home_latest_news