By Victor Reklaitis and Barbara Kollmeyer, MarketWatch
NEW YORK (MarketWatch) -- U.S. stock futures pointed to a lower
open on Wednesday, as they added to early losses after a round of
weak economic data.
Reports on manufacturing in the state of New York and U.S.
wholesale prices missed expectations, and a reading on retail sales
showed a decline for the first time in eight months.
Futures for the S&P 500 (SPZ4) were last down 25 points, or
1.3%, to 1850 while those for the Nasdaq-100 (NDZ4) fell 49 points,
or 1.3%, to 3,763. Futures for the Dow Jones Industrial Average
(DJZ4) dropped 162 points, or 1%, to 16,093.
On Tuesday, the S&P 500(SPX) snapped a three-day losing
streak, closing up 0.2% to 1,877.70, as the benchmark tried to find
a bottom after slumping to levels last seen in May.
Sean Darby, chief global equity strategist at Jefferies, said
it's unlikely the U.S. stock market has entered a bear-market
phase, but rather investors are just unwinding "unfettered
confidence" in central-bank policy.
"The equity market will bottom out once commodity prices find a
floor and the fear of deflation recedes," he said in a note dated
Tuesday. Crude-oil prices (CLZ4) fell anew on Wednesday, dropping
1% ahead of key supply data. Prices hit a two-year low on Tuesday
after a cut in the outlook for oil-demand growth from the
International Energy Agency. Energy-related stocks have sold off
the last four sessions.
Today's market-moving news: Among the big companies reporting
ahead of the bell, Bank of America (BAC) reported a third-quarter
loss that was smaller than expected. The bank's shares dipped 0.4%
ahead of the open after earlier showing a gain.
In economic news, the Empire State manufacturing survey
retreated sharply to 6.2 in October. Economists polled by
MarketWatch had expected a 21.0 reading
Retail sales fell 0.3% in September, and a producer price index
dropped 0.1%, while economists surveyed by MarketWatch had
predicted a 0.1% increase.
The Federal Reserve's Beige Book is due at 2 p.m. Eastern, and
it's expected to paint a picture of an improving U.S. economy.
Stocks to Watch: AbbVie Inc. (ABBV) shares fell 4% in premarket
trading after the U.S. drug maker indicated it's reconsidering a
$54 billion deal to buy Shire PLC in light of new Treasury rules
that make that deal less attractive. Shares of Shire slumped 26% in
London, weighing on the FTSE 100, while its U.S.-listed shares
(SHPGY) sank 24% in premarket. Ireland to close 'Double Irish' tax
loophole
Hazmat-suit related companies that have recently rallied on
Ebola fears were surging once again in premarket trading on
Wednesday. Shares of Lakeland Industries Inc. (LAKE) rallied 15%,
Alpha Pro Tech Ltd. (APT) jumped 21% and Versar Inc. (VSR) picked
up 36%.
Qualcomm Inc.(QCOM) said it has offered to buy U.K. chip maker
CSR PLC in a $2.5 billion deal. In August, CSR rejected a takeover
offer from Microchip Technology Inc. (MCHP). U.S-listed CSR shares
(CSRE) surged 31%. .
American Express (AXP), Netflix Inc. (NFLX) and eBay Inc. (EBAY)
will report after the close. Check out MarketWatch's for
previews.
Other markets: Asian stocks largely rebounded from prior-day
losses. Gold prices (GCZ4) edged up.
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