Wednesday, August 24, 2011

U.S Stock Futures Retreat After Biggest S&P 500 Gain in a Week

U.S Stock Status - For This Week
Aug.24 (Bloom berg) -- U.S. stock futures fell, indicating the Standard & Poor's 500 Index will pare gains after yesterday's biggest advance in a week, ahead of an economic report that may show companies are ordering less equipment as growth slows.

S&P 500 futures expiring in September declined 0.7 percent to 1,150.10 at 11 a.m. in Tokyo. The U.S. equity benchmark rallied 3.4 percent to 1,162.35 yesterday, the most since Aug. 11, on optimism the Federal Reserve will act to boost the world's biggest economy. Contracts on the Dow Jones Industrial Average lost 0.7 percent to 11,064.

Asian equities also declined, pushing the MSCI Asia Pacific Index down 0.5 percent. The Commerce Department said yesterday that sales of new homes in the U.S. hit a five-month low. That's adding to growing speculation that the Fed will move to shore up the economy.

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"There may be some disappointment with QE3 expectations," Anthony Crescenzi, executive vice president and strategist at Pacific Investment Management Co. said on Bloomberg Television's "First Up" with Susan Li. Pimco oversees $1.34 trillion in Newport Beach, California. "The Fed doesn't have a lot of ammunition left. It could announce some options that are on the table, but to expect implementation of it to occur quickly probably is the wrong bet."

Bookings for durable goods excluding transportation fell 0.5 percent in July after rising 0.4 percent in June, according to the median forecast of 38 economists surveyed by Bloomberg News ahead of a Commerce Department report today. The same agency may also say on Aug. 26 that the economy grew even less in the second quarter than previously estimated. Read More...


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