Stock Futures Slide on Cautious Fed, Growth Outlook

Tickers in this article: ELN HTZ OMC WYNN ^DJI ^GSPC ^IXIC

NEW YORK ( TheStreet) -- U.S. stock futures were pointing to a weaker open on Wall Street Monday as investors await a number of key events this week that could impact sentiment about a market trading at record highs.

Futures for the S&P 500 were falling 3.75 points, or 3.65 points below fair value, to 1,682.75. Futures for the Dow Jones Industrial Average were shedding 28 points, or 24.83 points below fair value, to 15,470. Futures for the Nasdaq were slumping by 5.5 points, or 4.33 points below fair value, to 3,065.

This week investors will be focused on the government's estimate of second-quarter U.S. gross domestic product on Wednesday, followed the same day by the Federal Reserve's latest policy announcement after its regularly scheduled two-day meeting. Also, the ISM manufacturing composite index for July will be published on Thursday, followed by the release of the month's U.S. government's non-farm payrolls report on Friday.

Also on Wednesday, alongside the initial snapshot of second-quarter output, the Bureau of Economic Analysis will release comprehensive benchmark revisions that extend back to 1929.

Joseph LaVorgna, the New York-based chief U.S. economist at Deutsche Bank said that there has been a steady pattern of upward revisions to non-farm payrolls numbers, and that chances are high that real GDP growth will be revised higher for the past couple of years.

"This has the potential to alter policymakers' perceptions of both the depth of the last economic downturn and the speed of the recovery," LaVorgna said. "The July employment report could solidify market participants' expectations for a September tapering of QE."

Hertz was shedding more than 3% to $26 after the car-rental company reported in-line second-quarter earnings of 45 cents a share, with revenue also meeting expectations, as total expenses increased by 21% in the quarter.

Wynn Resorts was falling 1.89% to $128.51 after the casino resorts operator posted second-quarter earnings that missed analyst expectations by six cents a share at $1.51 a share as revenue met estimates as sales growth in its Macau market slowed sharply to a 2.6% increase from a year ago.

Shares of Ireland's Elan were surging more than 7% to $16.02 in premarket trading after Michigan-based drugmaker Perrigo reached a deal to buy Elan for $8.6 billion. Perrigo said it will pay Elan investors $6.25 a share in cash and $10.25 in Perrigo stock. The deal presents an 11% premium over Elan's closing price Friday. Perrigo shares were slipping more than 2% to $131.27.

Perrigo said it will become an Irish-based company and said it could cut its tax liabilities nearly in half, saving more than $150 million a year.

Omnicom shares were jumping more than 6% to $69.15 after the company and France's Publicis agreed to a merger that would create the world's largest advertising firm. The deal -- which combines the companies in a "merger of equals" -- is valued at around $35.1 billion.