Stock Futures Flat on Weaker Japan Growth
NEW YORK (TheStreet) -- Stock futures were little changed Monday as investors contemplated weaker-than-expected economic growth in Japan, which added to growing evidence of a stalling global economy.
Futures for the Dow Jones Industrial Average were falling 7 points, or 1.05 points above fair value, at 13,165. Futures for the S&P 500 were down 0.6 points, or 0.77 points below fair value, at 1402. Futures for the Nasdaq 100 were up 1.25 points, or 1.89 points above fair value, at 2722.
Data showed that Japan's economy expanded at a slower-than-expected annual rate of 1.4% in the April-June quarter as the country's exports suffered under the strong yen and European debt crisis. That was a significant decline from a revised 5.5% the prior quarter and missed the median forecast of 2.5%, according to Reuters.
On Friday, the markets were hit by weaker-than-expected China trade data, though economists expected that this and a batch of other weak reports from the country meant that it was imminent that Beijing would carry out a 50-basis-point cut in the reserve ratio requirement.
All three major U.S. indices closed up last week. Stocks managed to erase earlier losses Friday as investors thought it was increasingly likely that global central banks would step in to prop up the economy.
No major economic releases are expected in the U.S. Monday.
September crude oil futures were up 73 cents at $93.60 a barrel and December gold futures were up $4.40 at $1,627.20 an ounce.
The benchmark 10-year Treasury was rising 3/32, lowering the yield to 1.653%. The greenback was down 0.13%, according to the dollar index.
The FTSE in London was flat and the DAX in Germany was up 0.11%.
The Hong Kong Hang Seng index close down 0.27% and the Nikkei in Japan finished flat.
In corporate news, Activist investor Nelson Peltz will join the board of Ingersoll-Rand(IR) as he pushes to improve profitability at the industrial conglomerate, The Wall Street Journal reported, citing people familiar with the matter.