Stock futures were lower this morning before the ISM services report, and the European Commission cut its growth forecasts.
After ending Monday higher, stock futures pointed toward a lower opening today. Dow
(INDEXDJX:.DJI) futures were down 0.34% at 15,522.00 while futures on the S&P 500
(INDEXSP:.INX) fell 0.32% to 1,757.30. Nasdaq
(INDEXNASDAQ:.IXIC) futures declined 0.33% to 3,366.25.
Sentiment on Wall Street turned gloomy after the European Commission reduced its forecasts for economic growth and employment in the eurozone. No growth is expected in 2013. In 2014, the EC expects 1.1% growth, down from an already middling 1.2%. It says that unemployment will rise to 12.2%, unchanged from September of this year. The European Central Bank might cut interest rates further in its meeting this week to address low inflation numbers. European stock indices declined overnight.
HSBC and Markit’s China services PMI reading confirmed that China is turning for the better. Non-manufacturing PMI rose to 52.6 from 52.4 in September. The government’s version of the indicator, which is weighted more toward large state-owned enterprises, rose to 56.3 from 55.4.
Later this morning we will get the Institute for Supply Management’s non-manufacturing index. Economists expect the report to show that the pace of service sector expansion picked up slightly in October to 54.5 from 54.4.
(NYSE:AOL) reported today that net profit fell by 90% in the third quarter. Excluding one-time charges such as the $405 million acquisition of Adap.tv and cost-cutting restructuring at Patch, earnings per share beat expectations at $0.55. Revenue also beat expectations at $561.3 million.
GT Advanced Technologies
(NASDAQ:GTAT) shares jumped by more than 25% this morning after signing an agreement to supply Apple
(NASDAQ:AAPL) with materials made from sapphire such as shatter-resistant coverings for camera lenses and fingerprint readers.
T-Mobile US Inc
(NASDAQ:TMUS) saw its third quarter loss shrink thanks to new sign-ups. The carrier, which only got the iPhone officially in April, saw smartphone sales double from a year ago to 5.6 million units. Total subscribers rose by 1 million to 45 million and the churn rate fell to 1.7% from 2.3%. The quarterly loss fell to $36 million from $7.73 billion a year ago, when it had an $8 billion write-down. Revenue climbed 37% to $6.69 billion, including the contribution from MetroPCS, which it merged with earlier this year.
Today, Richmond Fed President Jeffrey Lacker and San Francisco’s John Williams will both deliver speeches.
No positions in stocks mentioned.
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