By Barbara Kollmeyer, MarketWatch
MADRID (MarketWatch) -- U.S. stock futures headed lower early
Tuesday, as weak European data overshadowed better-than-expected
Chinese manufacturing numbers, and as investors remained wary after
stocks ended the prior session broadly lower.
Futures for the Dow Jones Industrial Average fell 44 points, or
0.3% to 17,055, while those for the S&P 500 index (SPZ4) dipped
6.3 points, or 0.3%, to 1,980. Futures for the Nasdaq-100 index
(NDZ4) were weakest, off 14.50 points, or 0.4%, to 4,038.25.
Strategists were concerned that geopolitical jitters had rattled
investor confidence after the U.S. and its allies launched an
attack on extremist fighters in Syria on Monday evening.
Monday's session on Wall Street was particularly grueling for
technology and small-cap stocks, as investors got nervous about
falling commodity prices and global growth. The Nasdaq Composite
(RIXF) lost 1.1%, while the Russell 2000 (RUT) dropped 1.5%, in its
worst day since late July. Read: Russell 2000 'death cross'
looms
The Federal Housing Finance Agency will release July home prices
at 9 a.m. Eastern Time, and the U.S. Markit 'flash' Purchasing
Managers Index is due at 9:45 a.m. Eastern. A handful of Federal
Reserve officials are due to speak, including Minneapolis Fed
President Narayana Kocherlakota, a voting member of the Fed policy
committee, who will appear at a town hall forum at Northern
Michigan University at 2 p.m. Eastern Time.
Kansas City Fed President Esther George will speak on the
economy in Cheyenne, Wyo. at 9:15 p.m. Eastern. She isn't a voting
member of the Fed policy committee.
Global data weighs: Stock futures, along with global stocks
overall, failed to get a lift from better-than-expected Chinese
data. The "flash" version of HSBC's manufacturing PMI rose to 50.5
in September, versus 50.2 in August and expectations for a drop to
50.
But a Markit survey showed activity in the eurozone's private
sector slowing in September to the lowest level so far this
year.
The market reaction so far doesn't make sense, said Christian
Tegllund Blaabjerg, senior strategist at Danske Bank in Copenhagen.
"Europe is expected to be weak. I think stock futures ought to
trade higher on good news from China," he said.
But tech stocks may be falling on concerns about the potential
for weak demand out of the eurozone, given a slowdown, Tegllund
Blaabjerg said. Opinion: Everyone is a genius in a Fed-induced
stock rally
Also, the fact that Apple Inc. (AAPL) saw first-weekend sales of
10 million iPhone 6 models should be a positive for these markets,
he said. "It seems that if you are at a certain product level,
you're independent of the investment cycle, suggesting there is
still money out there somewhere," he said.
The U.S. is seeing its weakest back-to-school shopping season
since 2009, according to research firm Customer Growth Partners
LLC, as reported by Bloomberg News Tuesday.
Stocks to watch: Alibaba Group Holding Ltd. (BABA) had fallen by
less than 1% in premarket, after a more than 4% drop in the U.S.
regular session on Monday.
Bed Bath & Beyond Inc. (BBBY) will release its
second-quarter results after the close of markets.
Google Inc. (GOOG) may attract attention after the EU's
competition chief Joaquín Almunia said the search company must
improve its proposed settlement over antitrust concerns or face
formal charges.
Other markets: Hong Kong stocks closed lower, as casino stocks
sold off. European stocks fell 1.2% on weak data. As equities
pulled back, beaten-down gold(GCZ4) and silver (SIZ4) moved up,
while the dollar eased some against major crosses.
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