Search This Blog

Search Tool

Asian Markets at Close Report

European Markets at Close Report

Aug 3, 2016

U.S. Stock Market Future Indications - August 3, 2016: Dow on Track For 8th Day of Losses as Stock Futures Point Lower

Carla Mozee

U.S. stock futures traded lower Wednesday, setting up Dow industrials for their eighth loss in a row, as investors waited for fresh readings on the health of the services sector and a precursor to the closely watched July jobs report.
Dow Jones Industrial Average futures YMU6, -0.21% were down 41 points, or 0.2%, at 18,207.00 while S&P 500 futures ESU6, -0.21% dropped 4.70 points, or 0.2%, to 2,148.00. Futures for the Nasdaq-100 NQU6, -0.21%  fell 11.25 points, or 0.2%, to 4,703.00.
The Dow DJIA, -0.49% on Wednesday could add to a string of seven straight declines, the longest losing streak in about a year. On Tuesday, the index fell 90.74 points, or 0.5%, to 18,312.77. Analysts have said a recent spate of soft economic data and a slump in oil prices into bear-market territory has sapped appetite for equities.
The S&P SPX, -0.64% on Tuesday fell 13.81 points, or 0.6%, to 2,157.03, led by the consumer-discretionary and industrial sectors. The Nasdaq-100 COMP, -0.90% ended the previous session lower by 46.46 points, or 0.9% at 5,137.73, breaking a five-session winning streak.
In the run-up to this week’s marquee economic report—the July payrolls report due Friday—investors on Wednesday will receive ADP’s update on private-sector hiring.
“The labor market remains an area of concern for the Fed, and despite alluding to the possibility of a rate hike this year, if labor market data is poor we are unlikely to see a rate hike over the remainder of 2016,” said Ana Thaker, market economist at PhillipCapital UK, in a note.
“If we see ADP surpass expectations, we can expect a boost in the U.S. dollar in an otherwise uncertain global outlook,” she said. The ICE U.S. Dollar Index DXY, +0.14%  was up 0.2% at 95.263.
Fed front: Chicago Fed President Charles Evans is expected to speak to news outlets, including MarketWatch, at 1 p.m. Eastern Time on Wednesday.
One person not ruling out a rate increase in the near future is Atlanta Fed President Dennis Lockhart.
“At this point I don’t rule out a rate increase at the next meeting or later in the year,” Lockhart said Tuesday in an interview on CNBC.
Data: ADP’s reading of private-sector hiring in July is due at 8:15 a.m. Eastern. A FactSet consensus estimate targets the addition of 170,000 jobs.

 Joanna Stern explains the transition to the new EMV chip cards for credit and debit, and why your smartphone is the real answer to all your payment problems.
At 9:45 a.m. Eastern, Markit will release its final reading on activity in the services sector in July. The preliminary reading showed the purchasing managers index hit a five-month low of 50.9.
The Institute for Supply Management’s services sector index is due at 10 a.m. Eastern. Analysts polled by MarketWatch expect a reading of 56.
Corporate reports: Ahead of the bell, Time Warner Inc. TWX, -1.25% shares climbed nearly 2% after the media company reported improved second-quarter earnings and said it’s invested 10% in streaming service Hulu. Hulu is a joint venture of Walt Disney Co. DIS, -0.55% 21st Century FoxInc. FOXA, +0.30% FOX, -0.37% and Comcast Corp. CMCSA, -0.95%
Fitbit Inc. FIT, -3.87% the maker of fitness-tracking wristbands, jumped 8% ahead of the bell after quarterly sales and earnings beat projections. Separately, Fitbit Chief Financial Officer Bill Zerella told MarketWatch to look for upgrades of existing products. New products also appear to be in the pipeline.
Office supplies chain Office Depot Inc. ODP, -6.27% reported second-quarter adjusted earnings that fell short of expectations. It also said it’s initiating a quarterly dividend and raising its stock buyback program to $250 million from $100 million.
Kate Spade & Co. KATE, -6.33%  shares shed 0.8% in premarket trading after the clothing and accessories company lowered its full-year 2016 forecast.
Teva Pharmaceutical Industries Ltd. TEVA, -1.21%  said it plans to buy Allergan PLC’s AGN, -1.61% Anda Inc. distribution business for $500 million.
Etsy Inc. ETSY, +7.17%  shares could be active after the crafts clearinghouse late Tuesday reported a wider second-quarter loss due to foreign exchange effects but posted growth in revenue and users.
Videogame maker Electronics Arts Inc. EA, +0.20%  issued a report showing a smaller-than-expected decline in quarterly revenue and profit despite lacking a major new release during the period.
Insurer Genworth Financial Inc. GNW, -1.79%  late Tuesday turned in quarterly results topped Wall Street estimates.
Community Health Systems Inc. CYH, -3.02% a hospital operator, reported second-quarter earnings that fell short of Wall Street estimates.
After the bell, Tesla Motors Inc. TSLA, -1.22% is slated to release second-quarter results. Read the preview:What to expect from Tesla earnings
SPX, -0.64% Other markets: Asian stocks ended mixed, with Japanese equities NIK, -1.88%  down 1.9% as strength in the yen weighed. European stocks SXXP, -0.14%  were slightly lower, but bank shares found some relief after recent declines.
Gold futures GCQ6, -0.10%  were off 70 cents at $1,363.70 an ounce, and oil futures CLU6, +0.91%  were up 0.8% at $39.82 a barrel.