Black Friday is Now! Don’t miss out on up to 60% OFF InvestingProCLAIM SALE

US STOCKS-Futures lower with ISM, housing data ahead

Published 09/01/2009, 07:26 AM
Updated 09/01/2009, 07:27 AM
NDX
-
US500
-
BAC
-
GC
-

* Housing data, ISM manufacturing on tap

* Futures off: Dow 64 pts, S&P 7.0 pts, Nasdaq 11.75 pts

NEW YORK, Sept 1 (Reuters) - U.S. stock index futures fell on Tuesday, ahead of report expected to show U.S. manufacturing expanded for the first time since the recession began, as fears persist about the strength of the global recovery.

* The Institute for Supply Management's August survey follows similar reports in China and Europe that showed manufacturing around the world continues to stabilize.

* As investors look for signs the nascent housing recovery is gathering steam, data is also expected to show U.S. pending home sales probably rose 2.0 percent in July, a slowing from June's 3.6 percent.

* Some investors say the the global rally in stocks, which has pushed the S&P 500 index up about 50 percent since early March, has run too far ahead of the recovery and may be due for a pullback. Recent falls in China's stock market have added to worries.

* "There are concerns mounting that the market has got ahead of itself, and as investors look to China it appears that they are running into a bout of concern regarding their own economy," said Andre Bakhos, president of Princeton Financial Group in Princeton, New Jersey.

* Looking ahead to the data releases, he said: "The market has to be certain there is no economic weakness, especially with the concerns in China - that would totally pull the rug from under the market."

* S&P 500 futures fell 7.0 points and were below fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures lost 64 points and Nasdaq 100 futures dropped 11.75 points

* The ISM's manufacturing index, due out at 10 a.m. (1400 GMT) along with the housing data, will likely show a reading of 50.5, up from 48.9 in July, according to forecasts of the 78 economists polled by Reuters. A reading below 50 points to contraction while a reading above 50 points to expansion.

* Bank of America Corp is offering to repay part of the U.S. government bailout money, starting with the $20 billion it received in January to help with the acquisition of Merrill Lynch & Co, the Wall Street Journal reported on its website late on Monday.

* The International Council of Shopping Centers and Goldman Sachs are set to release weekly data on U.S. chain store retail sales at 7.45 a.m. (1145 GMT).

* U.S. shares closed lower on Monday, as concerns about the global economy's health weighed on Wall Street following a sell-off in Chinese equities.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.