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U.S. futures slip lower, Fed minutes ahead; Dow Jones down 0.25%

Published 08/21/2013, 06:50 AM
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Investing.com - U.S. stock futures pointed to a lower open on Wednesday, ahead of the minutes of the Federal Reserve's latest policy meeting, as uncertainty over the future of the central bank's stimulus program.

Ahead of the open, the Dow Jones Industrial Average futures pointed to a 0.25% fall, S&P 500 futures signaled a 0.31% loss, while the Nasdaq 100 futures indicated a 0.36% decline.

Investors were looking ahead to the minutes of the Fed’s July meeting, due out on Wednesday, for further indications as to when the central bank may start to taper its USD85 billion-a-month stimulus program.

Expectations that the Fed may begin tapering as soon as next month were boosted after data last week showed that U.S. weekly jobless claims fell to an almost six year low.

Fed Chairman Ben Bernanke has said that the decision to start tapering will depend on whether economic data is strong enough.

Financial stocks were expected to be active, after Goldman Sachs experienced a trading glitch on Tuesday that resulted in a large number of erroneous trades.

Goldman shares slipped 0.19% in after-hour trade, following reports the error could cost the firm at least USD100 million.

In the tech sector, Apple shares edged up 0.10% in pre-market trade, following news the iPad’s share of China’s tablet-computer market plunged by more than 20% in the second quarter as Samsung Electronics cut into the tech giant's sales.

Elsewhere, Visa and MasterCard were likely to be in focus after saying they will pursue a multibillion-dollar antitrust settlement with U.S. merchants over credit card fees.

Among earnings, Toll Brothers jumped 1.45% after the luxury home builder reported a 24% rise in quarterly revenue to USD689.2 million on Wednesday.

Other stocks likely to be in focus included Hewlett-Packard, Lowe's, Staples, American Eagle and L Brands, scheduled to post results later in the day.

Across the Atlantic, European stock markets were lower. The EURO STOXX 50 slid 0.32%, France’s CAC 40 dipped 0.01%, Germany's DAX fell 0.19%, while Britain's FTSE 100 retreated 0.74%.

During the Asian trading session, Hong Kong's Hang Seng Index declined 0.69%, while Japan’s Nikkei 225 Index added 0.21%.

Later in the day, the U.S. was to release private sector data on new home sales.


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