U.S. Market Futures Lower as Weak Economic Data Affects Continue Wednesday

U.S. stock futures are pointing lower in pre-market trading for Wednesday, May 4. The Dow Futures are down -112.00 points to 17,561.0. The S&P 500 Futures are down -15.25 points to 2,041.75. The Nasdaq Futures are lower at 4302.0, down -32.50. The Russell Futures are down -8.30 points to 1,109.9.

In overnight trading, Europe and Asian market indexes were all lower. In Europe the FTSE is at 6,109.56 for a loss of -76.03 points or -1.23 percent. Germany’s DAX was lower by -62.42 points or -0.63 percent. France’s CAC 40 is at 4,343.64 for a loss of -28.34 points or -0.65 percent. In Asia, the Shanghai Composite is 2,991.10 for a loss of -1.54 points or -0.05 percent. Japan’s Nikkei is 16,147.38 for a loss of -518.67 points or -3.11 percent. India’s NSE Nifty is at 7,706.55 for a loss of -40.45 points or -0.52 percent.

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Source: CNBC

Wednesday’s Factors and Events

A number of companies are reporting earnings today with the outlook for results mixed. Among them, Time Warner, Delphi Automotive, Kraft Heinz, Tesla Motors and 21st Century Fox. Also for today is a long list of economic reports including the preemptive private sector labor market report from ADP. Also important will be international trade, the PMI Services Index, factory orders, the ISM Non-Manufacturing Index, the EIA Petroleum Status Report and the MBA Mortgage Applications Report. With a weakened outlook in economic growth and manufacturing, these reports will be especially important this week.

Tuesday’s Losses

Despite Monday’s gains, it appears Tuesday’s losses will continue Wednesday. On Tuesday, U.S. market indexes closed broadly lower as weaker manufacturing output in China and the U.S. caused doubts about economic growth. On Tuesday, the Dow Jones Industrial Average closed at 17,750.91 for a loss of -140.25 points or -0.78 percent. The S&P 500 closed at 2,063.37 for a loss of -0.87 percent or -18.06 points. Other notable index closes included the small-cap Russell 2000 closing at 1,122.08 for a loss of -18.84 points or -1.65 percent; the S&P 400 Mid-Cap Index closing at 1,454.30 for a loss of -19.36 points or -1.31 percent; the Russell 3000 which closed at 1,214.81 for a loss of -12.13 points or -0.99 percent; and the Nasdaq Composite which closed lower Tuesday at 4,763.22 for a loss of -1.13 percent.

DJIA and Large-Cap Stocks

In the Dow Jones Industrial Average, Pfizer reported earnings on Tuesday with a strong gain following positive results. The stock was up 2.77 percent or 0.91 points to $33.71. The company reported first quarter revenue and earnings that beat analysts’ expectations. Revenue for the first quarter was $13 billion, beating analysts’ estimates by $1 billion and gaining 19.7 percent from the comparable quarter. EPS for the first quarter was $0.67, beating analysts’ estimates by $0.12.

In the DJIA, Pfizer led the indexes gains for Tuesday. Apple and UnitedHealth were also higher. Leading the index broadly lower was United Technologies and Chevron. Sector performance across the U.S. market was lower with losses led by energy and materials.

In pre-market trading Wednesday, Apple’s stock is down again with high trading volume. The stock is showing a loss of -0.77%. Meanwhile Citigroup, Navient, Procter & Gamble, PayPal and Realty Income Corp. are all showing high trading volume with only Citigroup trading higher.

Technology

In technology, the Nasdaq Futures are also trading lower at 4,302.0, down -32.50 points. Apple’s stock trading will continue to be in the spotlight after falling post-earnings last week and regaining some strength Tuesday. The technology company’s sales in mobile and personal computers were lower for the second quarter which has raised market concerns over sales of the key products. Amazon is also continuing to gain the spotlight after reporting strong first quarter earnings results with high demand for its leading cloud product, Amazon Web Services.

Julie Young

julie@spfutures.org

Julie Young is a senior Market Reporter and Analyst

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