US Stock Futures Slip With Overseas Uncertainty
US stock futures slipped on Tuesday, following the markets in Europe and Asia, following concerns about global economic weakness, as well as mounting political tension between Japan and China.
Futures for the Dow Jones Industrial Average declined by 0.2 percent, or 20 points, to 13450, less than an hour before the opening bell on Tuesday. The Dow also fell 40 points, or about 0.3 percent, on Monday, as it suffered its first loss in five sessions, reports The Wall Street Journal.
Sock future changes aren’t always accurate when predicting stock moves after the opening bell each day. They were also not changed much by data, which showed that the US registered a narrower current account deficit than expected in the second quarter.
The report also showed that the US trade gap decreased to $139.32 billion in the second quarter, from $148.36 billion in the first quarter.
Along with the slip in US stock futures, European stocks and oil prices also fell on Tuesday, notes The Orlando Sentinel. FedEx believes that the worldwide economy has stalled.
Investors pay attention to FedEx’s forecasts, because their package delivery business is all over the world, allowing a window into how the economy is doing. The company sharply reduced its fiscal-year profit forecast because its customers have been using its express air delivery service less, choosing instead to use slower and cheaper ground service.
Peter Cardillo, chief market economist at Rockwell Global Capital, stated that, “The market is at high levels, certainly due for a pullback, and I suspect we’ll probably see one.”
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