Small-cap futures down
Small-cap futures are expected to open lower this morning, with overnight futures trading down about 0.50%. Overseas markets were higher in Asia Wednesday night in line with Wednesday’s gains in U.S. equities, but the move was not as impressive (Europe equities were mixed), which might have sparked profit-taking from short-term traders.
Futures markets wafted through the Weekly Claims report this morning with little change, as the number was close enough to the market consensus to have very little impact on the morning action.
There is further event risk this morning from the Philly Fed survey and Leading Indicators, which both hit the wires at 10:00 a.m. ET. The Philly Fed report is expected to sport five consecutive contraction readings for the first time since the 2001 recession. The Leading Indicators report is a compilation of mostly-known figures, and hence will be overshadowed among short-term traders by the Philly Fed report.
Earnings news from big-name companies was mixed overnight, and was not enough to steer away profit-taking in after-hours futures trading. On the good news side of the ledger, tech bellwether IBM (NYSE:IBM) beat profit forecasts, but Merrill Lynch & Co., Inc. (NYSE:MER) was down after missing the estimate following losses on subprime mortgages. Drug stocks could be soft after Pfizer Inc. (NYSE:PFE) earnings tumbled 18%.
Small-cap stocks with earnings releases this morning include: Knoll Inc. (NYSE:KNL), Media General, Inc. (NYSE:MEG), Ultratech, Inc. (Nasdaq:UTEK), Mission West Properties, Inc. (Nasdaq:MSW) and Aspect Medical Systems, Inc. (Nasdaq:ASPM).
Look for chart support in the Russell 2000 (NYSE:IWM) this morning at 707.50, 700 and 695, while resistance is at 715, 720.50 and 731.
