By Barbara Kollmeyer, MarketWatch
MADRID (MarketWatch) -- U .S. stock futures pointed to a lower
open for Wall Street on Tuesday, with technology stocks setting up
for another day of risk-off selling, as investors looked ahead to
the start of the Federal Open Market Committee meeting.
Futures for the Dow Jones Industrial Average fell 24 points to
16,919, while those for the S&P 500 index (SPZ4) eased 1.7
points to 1,974.40. Futures for the Nasdaq-100 index (NDZ4) fell
7.75 points to 4,017.75.
The data of note Tuesday are producer prices for August, due at
8:30 a.m. Eastern Time. But most investors will be eye-balling the
start of the two-day Federal Open Market Committee policy meeting
that gets under way on Tuesday.
Tech and small-cap stocks led a mostly losing day on Wall Street
on Monday, with the Nasdaq Composite (RIXF) dropping 1.07% as
investors turned risk-averse ahead of the Fed policy meeting, amid
some fears the central bank could turn more hawkish in its
statement.
Data compiled and reported by Bloomberg News on Monday, showed
47% of stocks in the Nasdaq Composite are down at least 20% from
their peak in the last 12 months, and more than 40% have fallen by
as much in the Russell 2000 index (RUT)(RUT)(RUT). Meanwhile, the
S&P 500 index has logged 33 new closing highs this year, and
less than 6% of companies are in what's considered bear-market
territory, Bloomberg reported.
Stocks to watch: Shares of Majesco Entertainment Co. (COOL)
could follow up a 20% drop in late trading on Monday, which came
after the videogame maker posted a deeper-than-expected
third-quarter loss.
Shares of Oxygen Biotherapeutics Inc. (OXBT) could come under
pressure after a 21% tumble in late trading. The drug company said
its board had voted to stop a current mid-stage clinical trial for
its traumatic brain injury treatment Oxycyte.
Tesla Motors Inc. (TSLA) may stay in the spotlight. Monday saw
the worst one-day percentage drop for shares since May on an
assessment by Morgan Stanley that the electric-car maker's stock is
overvalued. Countering that, Trip Chowdhry at Global Equities
Research, advised in a note Tuesday that investors buy Tesla on
weakness, as he reiterated an overweight rating and a
12-to-18-month price target of $385.
Other markets: Asian stocks were generally lower. China's
largest wireless carrier China Mobile Ltd. tumbled 3.8% at the
close, after reports said the release date for iPhone 6 in mainland
China is still uncertain. Data out of China also showed foreign
direct investment in August falling to a four-year low, which
follows weak factory data over the weekend.
European stocks fell across the board, not helped by a weak
German economic sentiment survey. Among currencies, the Russian
ruble (USDRUB) continued its decline against the U.S. dollar, down
another 1% as concerns over fresh sanctions weighed.(RUT)
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