Stock Futures Fall on Chinese, European Manufacturing Data
NEW YORK (TheStreet) -- Stock futures pointed to a lower open Wednesday after weak manufacturing data from Europe and China.
Futures for the Dow Jones Industrial Average were off 7 points, or 4.6 points below fair value, at 12,938. Futures for the S&P 500 behind by 0.8 points, or 0.9 points below fair value, at 1358. Futures for the Nasdaq were falling 1.7 points, or 0.6 points below fair value, at 2589.
Stocks posted a mixed close Tuesday as the Dow pulled off the 13,000 mark and the market gave Greece's second, €130 billion bailout package a tepid reception.
Two reports from Markit Economics on manufacturing activity in Europe and China were weighing on futures. Eurozone business activity dipped to 49.7 in February from 50.4 in January according to Markit Economics' purchasing managers index. Analysts had expected an increase to 50.6. Any reading below 50 suggest economic contraction.
Markit Economics' purchasing managers index on China manufacturing came in at 49.7 in February, rising marginally from 48.8 in January.
"Growth remains on track of slowdow, despite the marginal improvement in the headline flash PMI led by quickened production after the Chinese New Year," said Hongbin Qu, chief economist at HSBC. "With a meaningful rebound of domestic demand not in sight, external weakness is starting to bite, adding more downside risks to growth."
The first major U.S. report of the week will come out today at 10 am EST with the National Association of Realtors' reading on existing-home sales for January. Investors will be looking for further indications that the housing market has bottomed out. Sales are expected to have ticked up 2% to a 4.65 million-unit annual rate, according to estimates from Thomson Reuters. In December, existing-home sale rose 5% to a 4.61 million annual pace.