LONDON (MarketWatch) -- U.S. stock futures traded lower Thursday ahead of a deluge of economic data as well as continued mergers-and-acquisitions activity as Cisco Systems inked a $3 billion deal.
S&P 500 futures fell 4.9 points to 1,048.00 and Nasdaq 100 futures dropped 9.25 points to 1,708.20. Futures on the Dow Jones Industrial Average fell 21 points.
U.S. stocks weakened Wednesday on the final day of the third quarter, with the Dow Jones Industrial Average retreating 30 points, the Nasdaq Composite losing 2 points and the S&P 500 slipping 4 points. Weak economic data on jobs and a Chicago-area poll contributed to the bearish tone.
"While it was always unrealistic to expect continued uninterrupted improvement in economic indicators, in particular as the recovery in some series had broken previous records, the confluence of these negative releases comes at a sensitive time when markets have begun to question underpinnings of the six-month long equity rally and when the sustainability of the broader recovery remains in question," said Michael Hart, a currency strategist for Citigroup, in a note to clients.
Thursday will see a bevy of releases: personal income and the related PCE deflation inflation gauge for August; weekly jobless claims; the Institute for Supply Management's manufacturing gauge for September; pending home sales for August; construction spending for August; and car sales data for September.
Federal Reserve Chairman Ben Bernanke will be testifying on financial regulation, and, after the close, two more Fed speakers will discuss the economy.
The global economy will grow next year but it will be a sluggish recovery that could stall out, the International Monetary Fund warned Thursday.
There's also deals to consider, both rumored and announced.
Blue chip Cisco Systems (CSCO 23.54, +0.24, +1.03%) reached a deal to buy Norwegian video-conferencing-services firm Tandberg for $3 billion.
Comcast (CMCS.A 16.88, -0.50, -2.88%) denied a report it was going to buy General Electric's (GE 16.42, -0.29, -1.74%) 80% stake in NBC Universal.
Penske Automotive Group (PAG 19.18, +1.32, +7.39%) may be active after ending talks to buy the General Motors brand Saturn.
The Wall Street Journal meanwhile reported that Hershey (HSY 38.86, -0.19, -0.49%) is unlikely to bid for Cadbury (CBY 51.21, +0.44, +0.87%) , the chocolate maker that's rejected an offer from Kraft Foods (KFT 26.27, +0.25, +0.96%) .
Bank of America (BAC 16.92, -0.24, -1.40%) also will be in the spotlight as controversial CEO Ken Lewis said he'd step down at the end of the year. A replacement hasn't been named.
In the currency markets, the euro was particularly weak after Joaquin Almunia, the European Union's economics commissioner, said the euro group will discuss the euro's appreciation ahead of the G7 meeting in Istanbul. German retail sales also disappointed.
The Bank of Japan's key Tankan survey showed companies planning to cut capital spending, which sent the Nikkei 225 down 1.5% to a close below the 10,000 mark.
Oil futures declined but held above the $70-a-barrel mark, while the yield on 10-year Treasury bonds rose 1 basis point to 3.31%.
