RTTNews - US stocks futures were little changed Tuesday morning in New York amid growing concerns about the pace and magnitude of economic recovery and weaker commodity prices. That said, yesterday's rout could bring in bargain hunters looking to take advantage of recent weakess.
As of 6.15 am ET, the Dow Futures were up 6 points, the NASDAQ Futures were up 2.25 points, and the S&P Futures were up 1.30 points.
Stocks finished Monday's session sharply lower as traders did some profit taking following the recent rally amid concerns about valuation of the stocks in light of the near-term economic outlook.
The Dow closed down 187.12 points or 2.1% at 8,612, the Nasdaq closed down 42.42 points or 2.3% at 1,816 and the S&P 500 closed down 22.49 points or 2.4% at 924.
Traders may react to a trio of reports that are scheduled to be released ahead of the markets open. The Commerce Department is set to release a report on the housing starts for May at 8:30 AM ET. Economists expect an increase in starts to 485,000 following two straight months of declines, as builder confidence saw a modicum of improvement in recent months. At about the same time, the Labor Department is scheduled to release data on producer price inflation.
Industrial production report, scheduled to be released by the Federal Reserve at 9:15 AM ET, could have a key role to play in determining today's market direction, as traders look forward to the manufacturing sector to lead the recovery in the absence of adequate support from consumers.. Economists expect industrial production to have declined yet again in May, as the number of hours worked in the factory sector fell sharply in May.
Meanwhile, corporate chieftains are not that optimistic. Vikram Pandit, the CEO of Citigroup, stated that the U.S. Economy is passing through a period of adjustment and expects a lower growth rate for the economy in the near term.
Consumer electronics retailer Best Buy (BBY), Smithfield Foods (SFD) and FactSet Research Systems (FDS) are among the companies that report their results before the markets open. Also on tap are earnings from Adobe Systems (ABDE), which is due to release its results after the close of trading. The results are likely to be closely watched by traders, as the technology sector is one among the sectors that showed some leadership in the current market recovery.
La-Z-Boy (LZB) and Caesey General Stores (CASY) may react positively to their better-than-expected results for the fourth quarter, released after the market closed Tuesday. Tyco Electronics (TEL) lifted its financial outlook for the third quarter after the market closed Tuesday, citing improved sales.
European markets are trading modestly higher, as retailers and pharma stocks are offering some support. The French CAC 40 Index and the German DAX Index are rising 0.39% and 0.06% respectively, while the U.K.'s FTSE Index is moving up 0.31%.
The euro is strengthening against the U.S dollar after the survey results of the ZEW Center of Economic Research showed that economic sentiment indicator rose by 13.7 points to 44.8, which is above the historical average of 26.3. Economists had expected a more modest improvement to 34.
Crude oil is trading flat after sharp sharp declines in the past few trading sessions.
Asian markets ended weak on global recovery concerns. The Bank of Japan maintained its key interest rate near zero, but boosted its outlook for the domestic economy. The bank expects economic conditions to start improving from the second half of this year.
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