By Nagendra Padala: Subscribe to Nagendra's RSS feed
July 30, 2010 10:38 AM EDT
Futures on major U.S. stock indices point to a lower opening ahead of a key US GDP figure, which is expected to show a slowdown in the second quarter.
Futures on the S&P 500 are down 0.48 percent, futures on the Dow Jones Industrial Average are down 0.37 percent and Nasdaq100 futures are down 0.43 percent.
Investors are eagerly awaiting for the GDP numbers as other economic data released so far this week were unable to boost confidence about the global economic recovery.
Economists are expecting a slowed growth in the second quarter due to broadening in the trade deficit and also weaker consumer spending. Consumer spending, which accounts for about 70 percent of U.S. economic activity, is likely to decline from the 3 percent rate of the first quarter.
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According to a Reuters survey, US gross domestic product is expected to expand at a 2.5 percent annual rate compared to a 2.7 percent pace in the first quarter. Growth, excluding inventories, is expected to rise at a 1.8 percent rate compared to 0.8 percent in the first quarter.
Investors also eye Chicago Purchasing Managers Index and Michigan Consumer Sentiment Index which are due to be released after market opens.
String of companies including Chevron, American Electric Power, Apartment Investment & Management, Coventry Health Care, ITT and McKesson will report their earnings today.
On Thursday, US stocks recovered from session lows and ended well above intra-day lows as investors weighed some good second-quarter earnings reports against a too-small drop in initial jobless claims.
Before market opens:
• European shares declined on Friday as anxiety over fresh GDP numbers from the U.S. overshadowed some earnings-related gains from EADS, Alcatel-Lucent and others.
• European markets are currently trading higher with FTSE 100 trading down by 30.16 points, DAX30 trading down by 40.07 points and CAC 40 trading down by 25.51 points.
• On the economic front, euro zone’s unemployment rate was steady with 10 percent in June, unchanged compared with May and rose compared with 9 percent in June 2009. Consumer price inflation across the euro zone rose at an annual rate of 1.7 percent in July, the fastest pace in 20 months, compared to 1.4 percent in June.
• German retail sales declined 0.9 percent in June against the economists’ estimation of 0.3 percent monthly decline. Sales rose 3.1 percent compared to same month last year.
• The euro declined 0.65 percent to 1.2994 against the dollar and the yen advanced 0.46 percent against the greenback.
• Crude oil futures advanced 0.71 percent and copper futures fell 0.67 percent. In precious metal sector, gold futures advanced 0.20 percent and silver futures advanced 0.19 percent.
During Asian Market hours:
• Asian stocks declined on Friday as higher-than-estimated unemployment in Japan and a poorer Macquarie Group Ltd. earnings outlook overshadowed improved profit targets at Sony and Panasonic.
• Japanese Nikkei declined 1.64 percent or 158.72 points to 9537.30, Hong Kong’s Hang Seng fell 0.30 percent and Chinese Shanghai declined 0.40 percent.
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