RTTNews - US stocks were poised for a lackluster opening Wednesday following two days of losses amid concerns about the pace and magnitude of economic recovery. All eyes will be on the nation's capital, where President Barach Obama will announce sweeping reforms to the financial system.
As of 6.30 am ET, the Dow Futures were down 14 points, and the S&P Futures were down 0.80 points. The Nasdaq 100 is holding on in positive territory, up 0.75 points.
Stocks finished Tuesday's session in the negative territory amid mixed economic data. The sharp rise in housing starts and building permits for May was offset by a more-than-expected drop in industrial production and capacity utilization data. Weaker sales by Best Buy also raised concerns about the pace of economic recovery, dragging the indices into negative territory.
The Dow closed down by 107.46 points or 1.3% at 8,505, the Nasdaq closed down by 20.20 points or 1.1% at 1,796 and the S&P 500 closed down by 11.75 points or 1.3% at 912.
Fed Chief Ben Bernanke and FDIC Chair Sheila Bair, who are scheduled to deliver a speech at the Operation Hope Financial Literary Summit in Washington.
Amid volatility in crude oil prices in the past few trading sessions, traders will keenly await the weekly inventory report from the Energy Information Agency to assess the direction of crude oil prices. Also on tap would be the consumer price index for May, which remained unchanged in April following a 0.1% decline in March.
Yesterday Fed Governor Kevin Marsh said that the threat of deflation has decreased considerably and called for immediate action from the central bankers regarding the future course of action.
Auto-parts suppliers might react to news that their request for additional assistance from the U.S. Government has not been granted approval by the Obama Administration.
Reports about the increasing filings especially by large corporates for protection under Chapter 11 of bankruptcy amid deteriorating market and economic conditions might impact traders sentiment.
Software company Adobe might be in action after reporting a sharp drop in earnings and revenue for its second quarter. The results however came in above analysts estimates.
Traders would also look at the results of FedEx for the fourth quarter to assess the magnitude of the impact of slowdown in the economy.
Positive outlook for the Japanese economy by Bank of Japan at its Monthly Economic report and the Minutes of Meeting from Bank of England might also influence trading during the day.
European markets are trading in negative territory extending their losses led by banks and commodities global economy. The major indices, CAC 40 Index in France, DAX Index in Germany and FTSE Index in the UK are down more than 1% each.
The euro is strengthening against the U.S dollar after the release of the trade balance data in the Euro zone which showed that Eurozone trade surplus increased to EUR 2.7 billion in April, from a surplus of EUR 1.8 billion reported in March.
Crude oil is trading weaker ahead of the weekly inventory report, but staying above the $70 a barrel mark.
Most of the Asian markets ended weak on global recovery concerns. Japan's Nikkei index however bucked the trend and ended in positive territory on bargain hunting at lower levels.
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