U.S. Stocks Indicating a Lower Open on Wednesday
U.S stock index futures signaled a slightly lower open on Wednesday on Wall Street, with investors booking profits after global shares rallied in the previous session on better-than- expected news from the euro zone.
Investor sentiment was boosted on Tuesday on the news that both France and Germany avoided a contraction in the second quarter, with German gross domestic product rising by 0.3 percent. Overall, euro zone GDP shrank by 0.2 percent, sustaining market hopes of further stimulus measures by the European Central Bank.
Two housing reports are due in the U.S. on Wednesday, one being the MBA Mortgage Index for last week, out at 7 a.m. New York time. In the prior week the index fell 1.8 percent.
The National Association of Home Builders will release its monthly market sentiment index at 10 a.m. on Wednesday. Economists polled by Briefing.com expect the index to stand at 35 in August, flat on the previous month.
Also on Wednesday, the Labor Department releases the July Consumer Price Index (CPI) at 8.30 a.m. Analysts at Briefing.com expect the index to rise 0.2 percent, compared with an unchanged reading in June. Excluding volatile food and energy items, core CPI is expected to rise 0.2 percent, against a similar increase in the prior month.
The New York Fed’s Empire State Manufacturing Survey for August is also at 8:30 a.m.. Economists polled by Briefing.com expect the manufacturing survey to stand at 5, down from 7.4 in July. Any reading above zero indicates that manufacturing executives in New York see business conditions improving.
The Federal Reserve’s report on industrial production and capital utilization at 9.15 a.m. Economists polled by Briefing.com predict production rose by 0.6 percent in July and capacity utilization rose by 79.3 percent. In June, production grew 0.4 percent and utilization came in at 78.9 percent.
Crude oil inventories for last week will be released by the Energy Department at 10:30 a.m. on Wednesday. Inventories fell by 3.73 million in the prior week.
Companies reporting earnings on Wednesday during the U.S. trading session include agricultural machine manufacturer Deere [DE], retail chains Target [TGT] and Limited Brands [LTD] and semiconductor maker Applied Materials [AMAT]. Dow component Cisco [CSCO] will report after the closing bell.