Wall Street To Open Lower On China, Euro Zone Data
Stocks were set for a weaker open on Thursday as data on the domestic labor market did little to counter concerns about weakness in the global economy after soft manufacturing data in the euro zone and China.
The HSBC flash purchasing managers index showed China's manufacturing sector activity shrank in March for a fifth successive month while the March Markit's Eurozone Composite PMI showed further contraction, led by a decline in French and German factory activity.
The data greatly reduced hopes the euro zone could sidestep a recession while indicating China's slowdown has yet to wane.
European equity markets weakened for a fourth straight session, heading for their longest down run in four months as weak economic data reignited concerns about the strength of global demand while shares in Asia relinquished most of the earlier gains following the data. .EU
The pan-European FTSE Eurofirst 300 .FTEU3 fell 1 percent to 1,079.22 and the euro shed 0.3 percent.
Labor Department data showed new U.S. claims for unemployment benefits dropped to a fresh four-year low last week, providing more evidence the domestic economy continues to slowly improve, but were not enough to adjust investor expectations higher.
"With France and Germany's PMI coming in so low - they have been the catalyst that has been holding Europe together so it's a little bit of fear for some of the market participants," said Brad Thompson, chief investment officer at Stadion Money Management in Watkinsville, Georgia.
"A lot of the growth expectations economically, from a domestic standpoint have been priced in this recent trend, so the risk right now is still Europe."
The market has been resilient recently and able to rebound off sluggish starts to the session, but Thursday's trading could represent the first significant test for the S&P 500 to hold the 1,400 support level which it has held the past five days.
Other U.S. data expected later include the home price index, at 10 a.m. (1400 GMT) as well as leading indicators, also due at 10 a.m.
S&P 500 futures fell 8 points and were below fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures fell 60 points, and Nasdaq 100 futures lost 13 points.
FedEx Corp (FDX.N) dropped to $93.45, off 2.5 percent in premarket trading after the world's second-largest package delivery company reported a higher quarterly profit and forecast further advances in the current quarter.
Dollar General Corp (DG.N) advanced 1.5 percent to $45.40 in the premarket after the discount retailer posted higher holiday-quarter earnings and sales as more shoppers came in and spent more per visit. IDnL1E8EM1J5
ConAgra Foods Inc (CAG.N) dipped 0.8 percent to $26.15 premarket after it reported a higher-than-expected quarterly profit, helped by price increases, but stood by its full-year target.
Discover Financial Services (DFS.N) shed 1 percent to $31.34 in premarket trade after quarterly profit beat Wall Street expectations for the eighth straight quarter, as more Americans used its credit cards, and the company said it was speeding up its expansion into international markets.
McDonald's Corp's (MCD.N) lost 0.5 percent to $96.20 after the world's biggest hamburger chain said chief executive Jim Skinner is retiring after more than seven years at the helm.