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Wall Street set to open lower on sharp China sell-off
U.S. stock-index futures fell today after a steep drop in Chinese stocks weighed on markets around the world and as investors wait for the outcome of this week’s meeting of the U.S. Federal Reserve.
S&P 500 futures were last down 0.5 percent to 2,066.75, while those for the Dow Jones Industrial Average fell 0.6 percent to 17,417. Nasdaq-100 futures declined by 0.7 percent to 4,530.50.
Chinese shares tumbled more than 8 percent as an unprecedented government rescue plan to prop up valuations abruptly ran out of steam, raising doubts about the viability of Beijing’s efforts to stave off a deeper crash.
U.S. stocks fell last week, propelling the Dow to its steepest point decline since December.
Earnings season continues with big oil, social media stocks and pharma companies scheduled to report this week. Second-quarter S&P 500 earnings have been mixed, with 74 percent of companies beating analysts’ profit expectations but just 52 percent surpassing revenue expectations, according to Reuters.
DATA:
Orders for long-lasting manufactured goods rose in June, snapping a two-month streak of declines and suggesting greater confidence among businesses. New orders for durable goods—products such as toaster ovens and aircraft carriers designed to last at least three years—rose a seasonally adjusted 3.4 percent in June from a month earlier.
The Fed is not expected to make any changes to monetary policy when it concludes a two-day meeting on Wednesday, although markets are anticipating a rate hike at the September meeting.
MOVERS:
ADRS of Teva Pharmaceutical jumped 11.7 percent in premarket trading after it agreed to buy Allergan (NYSE:AGN) generic drugs business for $40.5 billion, giving up on its bid to buy Mylan (NASDAQ:MYL). Allergan was up 5.1 percent while Mylan fell 13.6 percent to $65.94.
Fiat Chrysler (NYSE:FCAU) was down 2.4 percent at $15.15 after the U.S. auto safety watchdog, National Highway Traffic Safety Administration, announced a $105 million fine against the automaker over lapses in its safety recalls.
Norfolk Southern (NYSE:NSC) fell 1.3 percent as U.S. railroad Norfolk Southern reported a lower quarterly net profit that was hurt by a steep decline in coal freight shipments and falling fuel surcharge revenue.
UBS (NYSE:UBS) skidded 0.4 percent after the Swiss bank was prompted to release quarterly results early due to an erroneous media report. Second-quarter net profit beat expectations.
COMMODITIES:
Spot gold was down 0.5 percent at $1,092.90 an ounce, after falling for a fifth straight week last week, the longest slide since late 2012. U.S. gold for August delivery was up 0.6 percent at $1,092 an ounce.
Front-month Brent crude fell to its lowest in four months at $53.63 a barrel, down $0.99 by 1035 GMT. On Friday, Brent closed at $54.62, its lowest since March 19. U.S. crude for September was down $0.57 at $47.57 a barrel.
Story by ProactiveInvestors
Source: http://www.proactiveinvestors.com/companies/news/62580/wall-street-set-to-open-lower-on-sharp-china-sell-off-62580.html
