U.S. index futures signaled stocks will fall for a second day as a selloff in emerging markets fueled concern global growth is slowing.
Standard & Poor’s 500 Index E-mini contracts expiring in September fell 0.2 percent to 2,089 at 7:14 a.m. in New York, after sliding as much as 0.5 percent. Minutes from the Federal Reserve’s July meeting due at 2 p.m. in Washington may offer clues on the timing of its first rate increase since 2006. Dow Jones Industrial Average futures lost 57 points to 17,425.
“Investors are nervous about the global picture and there is a bit of profit taking as they wait and see what happens next,” said Heinz-Gerd Sonnenschein, a strategist at Deutsche Postbank AG, in Bonn, Germany. “Declines in Asian and emerging market stocks add to negative sentiment, while economic signals have been mixed and there’s the big question mark on what comes out from the Fed minutes today.”
Emerging-market equities sank to a four-year low on concern investors will withdraw money faster as the Chinese economy slows. European stocks also followed suit.
China’s currency devaluation has spurred speculation the Fed may delay raising borrowing costs to combat a slowdown in global growth and the effect of falling commodity prices on inflation. Traders are pricing in a 50 percent probability of a rate move at the September meeting.
A report at 8:30 a.m. local time may show U.S. consumer prices rose 0.2 percent in July from a month earlier.
Stock Moves
The S&P 500 fell 0.3 percent yesterday as a selloff in commodities outweighed improvements in the housing market. Some momentum trades that worked well for investors earlier this year are showing signs of unraveling.
The benchmark measure is stuck in the tightest trading range since 1927. Still, not all investors are put off.
Among shares active on corporate news, Lowe’s Cos. lost 2.1 percent after posting profit that trailed projections. Canadian Solar Inc. plunged 10 percent after reporting a slump in earnings.
Analog Devices Inc. jumped 8.1 percent after its fourth-quarter profit and revenue forecasts beat analysts’ estimates. Yum! Brands Inc. rose 1.2 percent after saying Mickey Pant will succeed Sam Su as chief executive officer of its China unit.
Palatin Technologies Inc. soared 36 percent in premarket trading after a drug by peer Sprout Pharmaceuticals Inc. became the firstto win U.S. approval to treat a female sexual desire disorder.
As the earnings season winds down, about 74 percent of the S&P 500 members that have reported so far beat profit estimates, while 48 percent topped sales projections.
source: Bloomberg
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