Morgan Stanley due, along with U.S. data; China’s GDP jumps
By Barbara Kollmeyer, MarketWatch
MADRID (MarketWatch) — U.S. stock futures were mostly lower on Thursday as investors awaited earnings from Morgan Stanley and a clutch of economic data such as weekly jobless claims and home sales.
Futures on the Dow Jones Industrial Average (DJH11 11,757, -29.00, -0.25%) fell 17 points to 11,769. S&P 500 futures (SPH11 1,275, -3.40, -0.27%) fell 1.5 points to 1,277, while Nasdaq 100 futures (NDH11 2,292, -2.50, -0.11%) slipped 2.25 points to 2,292.20.
Investors will be focused on more big-name earnings Thursday. Ahead of the opening bell, Morgan Stanley (MS 28.05, +0.30, +1.08%) is expected to report fourth-quarter earnings of 40 cents a share. Also due out are results from Southwest Airlines (LUV 12.83, -0.25, -1.91%) , Huntington Bancshares (HBAN 7.00, -0.19, -2.64%) , UnitedHealth Group Inc. (UNH 40.56, -0.32, -0.78%) and others.
After the market close, Internet search giant Google Inc. (GOOG 635.50, +3.75, +0.59%) is due to report fourth-quarter earnings.
There is also a heavy schedule of economic data. Weekly jobless claims are expected at 8:30 a.m. Eastern. Existing home sales and leading indicators for December are due at 10 a.m. Eastern, along with the Philly Fed index for January.
“China’s GDP growth has alarmed markets somewhat, but some solid economic data out of the U.S. this afternoon could help to calm some of the nerves that have been agitated,” said David Jones, chief market strategist at IG Index.
China’s fourth-quarter gross domestic product rose a stronger-than-expected 9.8% year-over-year, reinforcing fears Beijing will move to further tighten monetary policy in an effort to put a lid on inflationary pressure.
Shanghai led Asian stock markets lower Thursday on the heels of the data. European equities also fell, with mining, energy and car stocks under pressure.
“The focus is currently squarely on inflationary pressures in China and while consumer prices did decelerate somewhat in December the growth in economic activity suggests that the country will do more to hinder the economy from overheating,” said Saxo Bank equity analyst Peter Garnry in comments on the company’s Web site.
“That means more interest rate hikes and reserve requirement increases this year,” he said.
China reported that consumer inflation hit 4.6% year-on-year in December, slightly below forecasts.
The U.S. dollar (USDYEN 82.2200, +0.2600, +0.3172%) slipped 0.1% to trade at 82.16 yen versus the Japanese currency. The euro (EURUSD 1.3496, +0.0022, +0.1633%) rose 0.4% to change hands at $1.3480 versus the dollar.
Commodity futures were moving south. Crude oil for February delivery fell 41 cents to $90.45 a barrel, while February gold futures fell $6.30 to $1,363.90 an ounce.
U.S. equities declined Wednesday in the wake of disappointing revenue figures from Goldman Sachs Group Inc. (GS 166.18, -0.31, -0.19%) and a weaker-than-expected earnings forecast from credit-card firm American Express Co. (AXP 45.24, -1.13, -2.44%) (AXP 45.24, -1.13, -2.44%) . See Market Snapshot from Wednesday
(AXP 45.24, -1.13, -2.44%) (AXP 45.24, -1.13, -2.44%) The Dow Jones Industrial Average (DJIA 11,825, -12.64, -0.11%) fell 12.64 points to close at 11,825.29 on Wednesday. On Tuesday, the index closed at its highest level since June 2008.
