By Barbara Kollmeyer, MarketWatch
China's economy shows fresh signs of a slowdown
MADRID (MarketWatch) -- U.S. stock futures edged higher Tuesday
ahead of the busiest data day of the week, with consumer prices and
new-home sales ahead, as well as another Federal Reserve
speaker.
A clutch of important global economic data was calling the early
shots for stock futures. Those for the Dow Jones Industrial Average
(YMM5) rose 30 points to 18,044, while those for the S&P 500
index (ESM5) added 2.5 points to 2,097.25. Futures for the
Nasdaq-100 index (NDM5) rose 4.25 points to 4,441.
Stocks finished slightly lower on Monday
(http://www.marketwatch.com/story/us-stocks-futures-pull-back-with-fed-speakers-home-sales-in-view-2015-03-23),
erasing modest gains in the last 15 minutes of trade. slightly.
Futures perked up after data showed the German purchasing managers'
index jumping to an eight-month high at 52.4, beating forecasts and
firming up the euro (EURUSD) against the U.S. dollar. That data
also pulled European stocks out of the red and into moderately
positive territory.
The upbeat news out of Germany acted as a counterbalance to a
report on Chinese factory activity, which showed a drop to an
11-month low, according to preliminary HSBC numbers. The data was
much weaker than expected, and they weighed on crude prices and
Asia stocks.
All eyes on CPI: Wall Street stocks finished slightly lower on
Monday
(http://www.marketwatch.com/story/us-stocks-futures-pull-back-with-fed-speakers-home-sales-in-view-2015-03-23),
erasing modest gains in the last 15 minutes of trade, and direction
for Tuesday was still tough to call, especially as investors waited
for a cluster of U.S. data.
February consumer prices are coming at 8:30 a.m. Eastern Time.
Headline prices are expected to rise 0.2%, from a 0.7% drop in
January, while core prices are seen up 0.1% from a 0.2% gain in
January.
"Whatever the outcome, it looks like deflation is likely to be a
feature for the U.S. -- for, say, the next 6 months -- so it'll be
interesting to see whether the prospects of a 2015 Fed hike can
coexist with such a scenario," said Jim Reid, strategist at
Deutsche Bank, in a note.
At 9 a.m. Eastern, the Federal Housing Finance Agency home price
index for January is due, while the Markit flash manufacturing PMI
is scheduled for release at 9:45 a.m. Eastern. New home sales for
February are coming at 10 a.m. Eastern.
St. Louis Fed President James Bullard will speak in London on
the future of international monetary policy and its impact on the
global economic recovery at 6 a.m. Eastern.
Stocks to Watch: McCormick & Co.(MKC) will release results
ahead of the market's open.
Chesapeake Energy Corp.(CHK) could be in focus after the company
cut its outlook for 2015 capital expenditure
(http://www.marketwatch.com/story/chesapeake-energy-cuts-2015-capex-production-outlook-2015-03-23)
due to continued weak commodity prices.
Whiting Petroleum Corp.(WLL) shares could see pressure after the
oil and gas company announced a secondary stock offering.
Other markets:Hong Kong's Hang Seng Index
(http://www.marketwatch.com/story/japanese-hong-kong-stocks-retreat-after-weak-chinese-data-2015-03-24)
fell after the Chinese factory data, while Japan's Nikkei broke a
two-day winning streak with a 0.2% fall.
Oil prices (CLK5) shook off earlier losses to inch higher, with
U.S. May crude up 11 cents to $47.54 a barrel, though investors are
watching for supply data due later. Gold (GCK5) was moderately
higher.
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