New York, August 2nd (TradersHuddle.com) – Stock futures were pointing to a lower open amid weak performance overseas on concerns over the pace of growth in the global economy following weak manufacturing data in the U.S. and speculation China will hike interest rates once more during the year to curb inflation pressures. The U.S. House of Representative voted to pass the debt ceiling increase bill, with it now heading to an easier vote in the Senate.
In Asia, stocks closed lower amid the sluggish data in the U.S. and on increased concern China will raise its interest rates again around the time of the next CPI announcement. The Nikkei fell over 1% with exporters leading the decline, as a stronger yen coupled with concerns over the pace of economic growth in the U.S., pressured the space. Toyota Motors (NYSE:TM), Japan’s largest exporter and the world’s largest automaker, posted better than expected results, while increasing its production forecast by 360,000 cars as its production recovery continues ahead of estimates.
In Europe, equity markets were extending losses on concern over the pace of growth in the global economy and continuing concern over the debt crisis in the euro zone periphery. Miners were weaker, as participants were trimming positions on concern over future demand amid signs of slower global economic growth and banks reversed earlier gains amid sovereign debt woes. Barclays (NYSE:BCS) said that its profit fell 33% year over year and that it will slash 3,000 jobs in an effort to cut costs amid a drop in investment banking and bond trading business.
The Dollar was climbing and continuing to make lost ground against the euro, while crude oil was falling 0.86% to $94.07 per barrel. Gold was climbing 0.43% to $1,628.6 an ounce, near an all-time high, while silver was gaining 0.77% to $39.61 an ounce on flight to safe haven amid economic uncertainty.
Automakers will be in focus, as they will report U.S. July car sales.
On economic news, at 8:30 am, the June Personal Income and Spending data will be out. Economists expect for both to increase by 0.1%. At the same time the June PCE prices will also be release, with economists expecting an increase of 0.2%.
Today’s stocks to watch: Apple (NASDAQ:AAPL), Bank of America (NYSE:BAC), Coach (NYSE:COH), Ford (NYSE:F), MetroPCS (NYSE:PCS), Pfizer (NYSE:PFE), Sirius XM Radio (NASDAQ:SIRI), and whole Foods Market (NASDAQ:WFM).
Apple (NASDAQ:AAPL), the maker of iPads and iPhones, was falling 0.26% to $395.71 on weaker sentiment amid economic concern. in the prior session Apple posted gains amid market weakness after Canaccord Genuity bumped its target price on AAPL to $515 from $510 due to record iPhone sales during the quarter and as the firm anticipates, according to its channel checks, strong global demand for the iPhone and iPad. And as Ticonderoga noted that noted that its checks indicate strong demand for the new MacBook Air thus far in the U.S., which bode well for the second half of the year during the back to school and holiday seasons. Numerous brokerage houses have lifted their target prices above $500, as the launch of the iPhone 5 around September will be an important catalyst for Apple’s outperformance, as the company took the top spot in smartphone sales during the second quarter, surpassing Samsung, Nokia (NYSE:NOK), and Research in Motion (NASDAQ:RIMM).
Bank of America (NYSE:BAC), the largest U.S. lender, was falling 0.2% to $9.79 in pre-market, as the embattled financial sector will likely outperform amid all the weakness following the debt ceiling bill passage by the House of Representative, which eliminates a big overhang on the sector, which fell on concern of a possible U.S. default sparking a full-blown financial crisis. The stock will also received some support from Barclays performance after posting a smaller than expected drop in profit and announcing as well job cuts amid a slowdown in investment banking business. Bank of America has the biggest exposure to the U.S. consumer and its highly sensitive to economic data, with personal spending and income data due out later this morning.
Coach (NYSE:COH), the leading American designer and maker of luxury lifestyle handbags and accessories, will be in focus after the company posted better than expected results. Coach said it earned $0.68 per share, $0.03 better than consensus, on revenues that climbed 8.4% year over year to $1.03 billion. Recently, Coach was downgraded to a Neutral from Outperform at Cowen. Coach has been trading between its calculated support at $63.14 and resistance at $68.13.
Ford (NYSE:F), the Dearborn, MI based automaker, will be in focus again during this session as the automaker will release its July sales figures. Yesterday, Ford gained more than 1% on the back of a bullish article on Barron’s over the weekend, in which it stated that Ford can gain as much as 25% if its credit rating improves and the automaker expands its sales in China and India. Last month, Ford posted better than expected results, with the company maintaining its U.S. full year industry volume outlook in the range of 13-13.5 million units, as it continues to expect second half results will be lower than first half. Ford has calculated support at $12 and resistance at $13.44.
MetroPCS (NYSE:PCS), the pay as you go wireless carrier, was plunging 10.38% to $14.50 on reaction to an earnings miss on revenues that were also shy of estimates. The company posted a profit of $0.23 per share, $0.05 worse than consensus, on revenues that climbed 19.3% year over year to $1.21 billion. Last month, MetroPCS was initiated with a Buy and a target price of $24 at Kaufman Brothers, with the firm noting a weak domestic economy benefits value providers as the prepaid wireless segment continues to outpace and gain share from the post-paid wireless providers.
Pfizer (NYSE:PFE), the world’s largest pharmaceutical company, was falling 1.53% to $18.72 in pre-market, after the company posted an upside earnings surprise on revenues that were inline with consensus. Pfizer also reaffirmed its guidance for 2011 and 2012. The pharma giant said it earned of $0.60 per share, excluding non-recurring items, $0.01 better than consensus, on revenues that fell 0.9% year over year to $16.98 billion. Last week the stock broke below its calculated support at $19.50, leaving the stock open for further weakness.
Sirius XM Radio (NASDAQ:SIRI), the satellite radio provider, was jumping 1.9% to $2.15 on initial reaction to its quarterly results. Sirius posted better than expected earnings but missed on revenues. The company said it earned $0.03 per share, $0.02 better than consensus, on revenues that climbed 6.44% year over year to $744 million. The company said that driven by auto sales growth and higher OEM penetration subscribers jumped 8% year over year, while the average self-pay monthly churn was stable in the second quarter at 1.9%. During the session automakers will report July sales, which will likely impact trading in the stock. Sirius XM joined the NASDAQ-100 index on July 15th. The stock has calculated support at $1.99 and resistance at $2.35.
Whole Foods Market (NASDAQ:WFM), the owner and operator of organic and natural food supermarkets, will be in focus after Williams Capital Research bumped its target price to $80 from $69.30. The firm believes believe the company is well poised to continue to gain market share from traditional grocers, with its competitive position well established with an affluent customer base. it also believes that operational performance going forward will exceed historical levels. The stock posted an all-time high of $68 last week following an earnings beat.