US stock futures: Wall Street poised to join in China-led selloff
New York (July 27) US stocks on Monday looked on track to join in a global selloff that’s been led by a sharp slide for markets in China, where investors worried about a slowdown in government buying and disappointing industrial data.
The U.S. stock market was set to just edge lower at the open, but was still on track to add to last week’s sizable losses, as investors wait for a fresh reading on demand for big-ticket items, as well as for quarterly earnings from companies like Norfolk Southern Corp. NSC, -0.62%
S&P 500 futures ESU5, -0.48% were last down 3.10 points, or 0.2%, to 2,074.50, while those for the Dow Jones Industrial Average YMU5, -0.56% fell 34 points, or 0.2%, to 17,489. Nasdaq 100 futures NQU5, -0.64% declined by 13.50 points, or 0.3%, to 4,548.25.
Last week, the S&P 500 SPX, -1.07% and Dow DJIA, -0.92% suffered weekly drops of 2.2% and 2.9%, respectively, as investors fretted about a slump for commodities and some disappointing earnings reports.
Other markets: The Shanghai Composite SHCOMP, -8.48% closed 8.5% lower for its biggest one-day slide since February 2007, and European stocks SXXP, -1.53% were trading mostly lower.
Gold futures GCQ5, +0.66% gained ground, benefiting from haven demand as stocks mostly retreated worldwide. Crude prices CLU5, -1.20% fell, and the dollar DXY, -0.54% was lower against its major rivals.
What strategists are saying: The S&P 500 last week failed to break above its May all-time high, and the benchmark now is nearing support near the 2,044 level, said Katie Stockton, BTIG’s chief technical strategist, in a note Sunday. But she hasn’t turned bearish.
“We think the propensity of investors to believe that each pullback is the beginning of something much worse is actually healthy, and generally speaking, we view pullbacks as opportunities to add exposure to stocks closer to support,” Stockton wrote.
Economic reports: A reading for June durable-goods orders is expected at 8:30 a.m. Eastern Time, with analysts expecting a rise of 2.6%.
Investors this week are getting ready for the closely watched Federal Reserve meeting on Tuesday and Wednesday, waiting for clues on the timing of a rate rise. See: MarketWatch’s Fed meeting preview
Movers & Shakers: Mylan N.V. MYL, -12.12% shares tumbled 12% in premarket action after Teva Pharmaceuticals Industries Ltd. TEVA, +13.86% said it has withdrawn its buyout offer for the maker of generic drugs. Teva announced Monday that it’s instead planning to buy Allergan PLC’s AGN, +8.73% generics business for $40.5 billion.
Before the open, Norfolk Southern Corp. NSC, -0.62% is projected to report second-quarter earnings of $1.42 a share, according to analysts polled by FactSet.
UBS UBS, -0.98% UBSG, -1.53% UBSN, -1.62% shares were lower in premarket trade after the Swiss bank was prompted to release quarterly results early due to an erroneous media report. Second-quarter net profit beat expectations.
Source: MarketWatch
