Stock Futures Slide on Cautious Fed, Growth Outlook
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."
Shares of Ireland's Elan
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.