US stocks set for choppy day as traders wait for nonfarm data, earnings
New York (Aug 4) Wall Street was poised for a volatile session on Tuesday, with U.S. stock futures wobbling around the flatline as investors stayed on the sidelines ahead of key jobs reports due later in the week.
A raft of corporate updates are on tap, with earnings from Coach Inc. COH, +4.80% CVS Health Corp. CVS, +0.31% and Sprint Corp. S, +7.19% among those expected before the bell.
Futures for the Dow Jones Industrial Average YMU5, -0.18% rose 86 points, or 0.1%, to 17,519, while those for the S&P 500 index ESU5, -0.22% picked up point, or less than 0.1%, to 2,091.75. Futures for the Nasdaq 100 index NQU5, -0.30% lost 0.50 point to 4,573.50.
The small losses built on a weak session from Monday, when all three stock averages closed firmly lower after disappointing U.S. economic data and a slump in oil prices. A report on manufacturing activity came in lower than expected, reigniting fears that growth in the world’s largest economy is losing momentum.
Data out later this week could also dictate the future trading direction. On Friday, the top-tier nonfarm-payrolls report is due, which will be scrutinized for clues to the strength of the labor-market recovery. The Federal Reserve has said it’s watching economic indicators — wages and employment numbers in particular — as it assesses when to hike interest rates.
The ADP employment report, considered a precursor to the nonfarm data, is due on Wednesday.
Tuesday only features one noteworthy data set: Factory orders for June, scheduled for release at 10 a.m. Eastern Time. Economists polled by MarketWatch expect a 2% rise after a 1% drop in May.
There are no Federal Reserve speakers on the docket.
Earnings: The reporting season continues at full speed on Tuesday, with several prominent companies reporting before the bell.
Sprint S, +7.19% is forecast to post a fiscal first-quarter loss of 7 cents a share, compared with a profit of a penny a share a year ago, while CVS CVS, +0.31% is expected to post fiscal fourth-quarter earnings of 29 cents a share, down from 59 cents a share a year earlier.
Aetna Inc. AET, +0.73% Office Depot Inc. ODP, -1.25% Archer Daniels Midland Co. ADM, +0.59% and Coach Inc. COH, +4.80% are also slated to report premarket.
After the closing bell, earnings from DreamWorks Animation Inc. DWA, -1.24% and Walt Disney Co. DIS, +0.93% are on tap.
Movers and shakers: Shares of American International Group Inc. AIG, +0.05% could be active after the insurance giant late Monday boosted its dividend and raised its share-repurchase target by $5 billion. It also reported better-than-expected second-quarter results.
Other markets: Chinese shares moved sharply higher after officials announced fresh steps to rein in short selling.
In Europe, markets were mixed, with Greece’s Athex Composite GD, -1.78% slumping 1.9% on their second trading day after the market reopen.
Oil prices partly recovered from Monday’s selloff. Brent crude on London’s ICE Futures LCOU5, +1.64% inched back above $50 a barrel, while the U.S. benchmark CLU5, +1.57% put on 59 cents to $45.78 a barrel.
Metals prices were mixed, while the dollar declined against most other major currencies.
Source: MarketWatch
