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U.S. futures dip ahead of data; Dow Jones down 0.10%

Published 08/15/2012, 07:15 AM
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Investing.com - U.S. stock futures pointed to a slightly lower open on Wednesday, as investors locked in the previous day’s gains and as markets awaited the release of a string of U.S. economic reports later in the day. 

Ahead of the open, the Dow Jones Industrial Average futures pointed to a 0.10% fall, S&P 500 futures signaled a 0.17% decline, while the Nasdaq 100 futures indicated a 0.12% loss.

Stocks were boosted by data on Tuesday showing that U.S. retail sales snapped four successive months of declines in July, jumping 0.8%, surpassing expectations for a 0.3% increase.

But investor confidence remained fragile after a report showed the euro zone economy contracted by 0.2% in the three months to June.

Overall market sentiment continued to be underpinned by hopes that recent signs of a slowdown in economic growth would prompt world central banks to implement more easing measures to spur the economic recovery.

Tobacco companies were very likely to be in focus on Wednesday, after Australia set a global precedent for tobacco control earlier in the day, when its High Court rejected the tobacco industry's argument that the Federal Government's plain-packaging laws are unconstitutional.

The companies which had challenged Australian law were tobacco giants British American Tobacco, Britain's Imperial Tobacco, Philip Morris and Japan Tobacco.

Elsewhere, financial stocks were expected to be active, as Goldman Sachs CEO Lloyd Blankfein and other bank officials won the dismissal of a shareholder lawsuit accusing them of tolerating poor mortgage practices and quitting a federal bailout program early to boost executive pay. Goldman Sachs saw shares add 0.19% in after-hour trade.

Also in company news, U.S. buyout fund Carlyle Group said it acquired a 13.5% stake in Meinian Onehealth Healthcare Group, placing a bet on rising spending on preventive healthcare from China's growing middle class and ageing populations.

In the energy sector, biodiesel maker Renewable Energy Group was expected to move, after posting a second-quarter profit on Tuesday versus a year-ago loss, as the company continued to increase production.

Separately, BP Capital reportedly sold all of its holdings in number two U.S. gas producer Chesapeake Energy and oil major BP, according to second quarter filings posted with the U.S. Securities and Exchange Commission on Tuesday afternoon.

Other stocks in focus included Kraft Foods, as the company’s board of directors on Tuesday approved the spinoff of its North American grocery business to shareholders. The date for the spinoff is scheduled for October 1.

Across the Atlantic, European stock markets were lower. The EURO STOXX 50 fell 0.34%, France’s CAC 40 declined 0.27%, Germany's DAX retreated 0.43%, while Britain's FTSE 100 dropped 0.40%.

During the Asian trading session, Hong Kong's Hang Seng Index tumbled 1.18%, while Japan’s Nikkei 225 Index eased 0.05%.

Later in the day, the U.S. was to release official data on consumer price inflation and industrial production, as well as a report on manufacturing activity in the New York area.



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