Wall Street Sees No Respite

(RTTNews) - Trading in the U.S. index futures suggests that Wall Street stocks may open Wednesday's session lower, as the Chinese market continued to see volatility and commodities went about a lackluster move. The dollar has seen some loss of momentum, although the retreat is only marginal. Asian stocks closed mixed earlier in the global trading day, while the European markets are seeing marked weakness. The domestic markets are set to digest another raft of retail earnings, economic data on consumer prices and the FOMC minutes. The minutes are likely to be scanned by traders for any hints regarding the timing of the first rate hike.

At 7:31 am ET, the Dow futures are slipping 59 points, the S&P 500 futures are down 5 points and the Nasdaq 100 futures are down 10.50 points.

U.S. stocks retreated on Tuesday, as some lackluster earnings from Wal-Mart (WMT), worries triggered by another session of sell-off in the Chinese market and strong domestic data weighed down on the markets.

On the economic front, the Labor Department is scheduled to release its consumer price inflation report for July at 8:30 am ET. Economists expect consumer prices to have increased by 0.2 percent month-over-month, slower than the 0.3 percent increase in June. Core consumer prices are also estimated to have risen 0.2 percent, the same pace as in the previous month. The Energy Information Administration will release its weekly petroleum status report for the week ended August 14th at 10:30 am ET.

The Federal Reserve is due to release the minutes of the July 28th-29th monetary policy committee meeting at 2 pm ET.

In corporate news, Analog Devices (ADI) reported better than expected third quarter adjusted earnings and revenues. The company's fourth quarter guidance was above the consensus estimate.

La-Z-Boy (LZB) reported higher first quarter earnings and revenues, with the revenues slightly ahead of expectations. DeVry (DV) reported fourth quarter adjusted earnings and revenues that trailed estimates and issued weak guidance for the full year.

SINA's (SINA) second quarter adjusted earnings and revenues were ahead of expectations. Weibo (WB) reported adjusted earnings and revenues for the second quarter that exceeded estimates. The company's third quarter revenue guidance was positive. Photronics (PLAB) reported above-consensus third quarter results.

Seagate Technology (STX) announced a deal to buy software and hardware storage systems supplier Dot Hill (HILL) for $9.75 per share or a total of $694 million.

L Brands (LB), NetApp (NTAP), Semtech (SMTC) and Synopsys (SNPS) are among the companies due to release their quarterly results after the close of trading.

The major Asian markets closed mixed, with the Japanese, Hong Kong and South Korean markets retreating, while most other major markets ended higher. The Chinese market recovered in a late hour buying surge.

The Japanese market suffered due to a stronger yen. The Nikkei 225 average ended down 331.84 points or 1.61 percent at 20,223. Australia's All Ordinaries hovered in positive territory throughout the session before ending up 70.40 points or 1.33 percent at 5,380. China's Shanghai Composite Index, which languished below the unchanged line with a loss of over 2 percent in intra-day trading, recovered in late trading. The index closed up 45.95 points or 1.23 percent at 3,794. Meanwhile, Hong Kong's Hang Seng Index ended at 23,168, down 307.12 points or 1.31 percent.

On the economic front, a report released by Japan's Ministry of Finance showed that the trade balance of Japan was in a deficit of 268.055 billion yen in July compared to a revised 70.5 billion yen shortfall in June. Economists expected a deficit of 53 billion for the month. Exports rose 7.6 percent year-over-year and imports fell 3.2 percent.

Japan's Ministry of Economy, Trade and Industry reported that all industry activity in Japan unexpectedly increased in June, with the index rising a seasonally adjusted 0.3 percent month-over-month following a 0.5 month-over-month drop. Economists had expected a 0.4 percent drop. Industrial production and tertiary activity increased, while construction activity contracted.

European stocks opened lower and have fallen further since then. The major averages in the region are currently notably lower, as commodities continue to slide and a couple of earnings reports were discouraging. The outcome of the German Parliamentary debate on the third Greek bailout deal and the FOMC minutes also served to keep sentiment subdued.

In corporate news, Glencore reported a steep drop in its first half earnings, hurt by falling commodity prices. The company also lowered its profit guidance for its trading arm. Brewer Carlsberg lowered its full year guidance, as sales at its key markets sagged. Imperial Tobacco reported a decline in its revenues for the nine-month period but estimates a 10 percent increase in its annual dividend.

On the economic front, data released by the European Central Bank showed that the current account surplus for the euro area increased to a 3-month high of 25.4 billion euros in June from 19.1 billion euros in May. The surplus on the trade in goods increased.

Eurostat reported that construction output fell 2.3 percent year-over-year in June following a 0.2 percent increase in May. On a monthly basis, construction output fell 1.9 percent.