U.S. futures are pointing toward a lower open ahead of the consumer price report and a slew of U.S. data.
[B]What To Watch For In The US Session
• Insurers Look To Tap Tarp Funds
• Inflation Data Ahead
• Empire Manufacturing and Consumer Confidence On Tap
[/B][U][B]Consumer prices and Industrial Production Data Could Dictate Sentiment For Equities[/B][/U]
U.S. futures are pointing toward a lower open ahead of the consumer price report and a slew of U.S. data. Prices are expected to have fallen by 0.6% in April which could fan deflation concerns and dim the outlook for corporate profits. However, we could see sentiment improve if industrial production and Empire manufacturing figures show improvement as expected. Additionally, the University of Michigan consumer confidence report is forecasted to rise for a third straight month to 67.0 from 65.1 which could raise expectations for consumer spending. Also, a report that four insurers received approval to tap TARP funds could help support financials.
[B]Dow Jones 8331.32[/B]
The DJIA futures have steadily declined and continued to be weighed by global growth concerns. A weaker than expected Euro-zone GDP report has lowered expectations for a recovery which would weigh on industrials and energy stocks. However, if the U.S. manufacturing data show improvement domestically it could offset the broader pessimism.
[B]
NASDAQ 1689.21[/B]
The Nasdaq futures are also negative and if the inflation data signal that prices continue to drop, then the diming outlook for corporate profits may add to bearish sentiment.
[B]S&P 500 893.07[/B]
The S&P 500 is also at risk of trading lower of the broad based risk aversion, but improvements in domestic activity and consumer confidence could push the index into positive territory.
[U][B]Current Snap Shot[/B][/U]
