WASHINGTON (dpa-AFX) - Optimism on Wall Street seems to have tempered, with the confidence engendered by austerity measures proposed by Greece and Spain yesterday waning. Now the focus shifts to when Spain will seek a bailout that could help it avert a fiscal crisis. Markets also keenly await the results of a stress results being conducted on the Spanish banking system to see how vulnerable these institutions are. Some first tier economic data on consumer confidence, consumer spending and the manufacturing sector may also set the tempo for today's movement.
As of 6:15 am ET, the Dow futures are receding 32 points, the S&P 500 futures are moving down 2.90 points and the Nasdaq 100 futures are declining 4.50 points.
U.S. stocks advanced strongly on Thursday, as confidence in Spain passing through austerity measures required to seek a full fledged bailout increased. The gains came despite the release of a mixed batch of economic data.
On the economic front, the Bureau of Economic Analysis is due to release its personal income & outlays report for September. Economists expect the report, which is due out at 8:30 am ET, to show that personal income rose 0.2 percent, while personal spending is expected to have increased by 0.5 percent. In July, personal spending rose 0.4 percent.
The results of the Institute of Supply Management-Chicago's business survey for September are scheduled to be released at 9:45 am ET. Economists expect the business barometer index based on the survey to remained unchanged at 53.
Reuters and the University of Michigan are due to release the final report on the consumer sentiment index for September is scheduled at 9:55 am ET. The consumer sentiment index is expected to be downwardly revised to 79.
In corporate news, Research In Motion (RIMM) reported second quarter adjusted net loss of 27 cents per share compared to net income of 63 cents per share last year. Revenues rose 2 percent to $2.9 billion. The results were ahead of estimates. Citing competitive challenges, the company said it expects to report an operating loss for the third quarter.
Nike's (NKE) first quarter results were ahead of estimates. The company also said futures orders for the NIKE Brand athletic footwear and apparel scheduled for delivery from September 2012 through January 2013 rose 6 percent year-over-year to $8.9 billion.
Accenture (ACN) reported fourth quarter results that exceeded estimates. The guidance was also positive.
Global Payments' (GPN) first quarter earnings were in line, while the revenues exceeded estimates. The company updated its 2013 guidance to incorporate closings of two acquisitions and new financing. Revenues are expected at $2.36 billion to $2.40 billion and cash earnings guidance at $3.59-$3.66 per share. The guidance surrounded the consensus estimate.
Rambus (RMBS) said it has signed a 6-year patent license agreement with Fujitsu Semiconductor, covering the use of Rambus patented innovations implemented in a broad range of IC products offered by Fujitsu. The company did not disclose the financial terms of the deal.
Micron Technology (MU) reported a fourth quarter net loss of 24 cents per share compared to a loss of 32 cents per share. Net sales fell to $1.96 billion from the year-ago quarter's $2.2 billion. The results trailed estimates.
ADTRAN (ADTN) lowered its third quarter guidance, citing a challenging spending environment stemming from macro-economic and regulatory concerns. The company now expects non-GAAP earnings of 18-19 cents per share on revenues of $162 million. The revised guidance is below the consensus estimate.
Most major Asian markets ended on a positive note, with the Spanish austerity measures warming the hearts of traders. Meanwhile, the Japanese market bucked the uptrend by posting moderate losses.
Australia's All Ordinaries closed 3.50 points or 0.08 percent higher at 4,406. Material and energy stocks saw modest buying interest, helping to offset the weakness in the consumer staple space. Hong Kong's Hang Seng Index closed at 20,840, down 78.09 points or 0.38 percent.
Japan's Nikkei 225 average opened on a tentative note but pulled back below the unchanged line in late morning trading. After moving sideways, the index legged down further in the afternoon, ending down 79.71 points or 0.89 percent at 8,870.
Among the slew of economic data releases by Japan, a Ministry of Internal Affairs and Communications showed that Japan's unemployment rate came in t 4.2 percent in August compared to expectations for 4.3 percent. A separate report showed that household spending in Japan rose 1.8 percent year-over-year in August, also better than the 1.1 percent increase expected by economists.
The inflation report released by the ministry showed that core consumer producer prices fell 0.3 percent year-over-year in August, in line with expectations. The Ministry of Economy, Trade and Industry reported that retail sales rose 1.8 percent month-over-month in August, belying expectations for a 0.3 percent drop. Meanwhile, industrial output fell 1.3 percent month-over-month in August compared to the 0.5 percent drop expected by economists.
After a positive start, European stocks have turned, accentuating the underlying nervousness of traders over the precarious fiscal situation in some of the troubled eurozone nations.
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