World stock Market News 09-07-2014 …


U.S. stock futures inched down Tuesday, as investors waited for results from the coming earnings season to gauge whether the markets can continue to set records. About 90 minutes ahead of the open, Dow Jones Industrial Average futures shed 21 points, or 0.1%, to 16925.00.

S&P 500 index futures declined 3.3 points, or 0.2%, to 1967.70 and Nasdaq-100 futures lost 3.25 points, or 0.1%, to 3901.00. Changes in stock futures don’t always accurately predict stock moves after the opening bell. Stocks fell on Monday, with the Dow falling 0.3% to 17024.21 and the S&P losing 0.4% to 1977.65. Losses in the Dow snapped a three-session winning streak that had pushed it above 17000 for the first time.

Stocks have minted a slew of records this year as labor-market data underscore a U.S. recovery and the Federal Reserve maintains accommodative monetary policy. Expectations of continued low U.S. interest rates could add to the allure of stocks.

The Dow has gained 2.7% in 2014 through Monday’s close and the S&P 500 has rallied nearly 7% in the same period. Many investors say earnings growth is a key component for further stock-market gains. Alcoa is scheduled to report second-quarter earnings Tuesday, an event that is widely recognized as the start to the earnings season. Analysts polled by FactSet are expecting per-share earnings of 12 cents.

The U.S. economy created more jobs than expected in June, the Bureau of Labor Statistics reported Thursday. That pace of job creation could foreshadow a pickup in corporate earnings.

Also in focus this week is the release of minutes from the Federal Reserve’s rate-setting committee, due Wednesday, which could shed some light on the timing of the central bank’s eventual interest-rate hikes.

European shares declined Tuesday, with the Stoxx Europe 600 losing 0.5%. Franco-Dutch airline Air France-KLM shares fell more than 5% after the company became the latest to lower its earnings guidance for 2014, citing weak demand and difficulties repatriating revenue from Venezuela.

Commerzbank AG shares declined 4% as reports said the lender could be the next to be scrutinized by regulators for allegations surrounding sanctioned payment activities.

The pound inched down 0.1% to $1.7123, weighed by U.K. factory output falling unexpectedly on the month in May.

The Office for National Statistics said the monthly falls in the U.K.’s industrial sector aren’t a sign of weakness in the economy. However, it is likely the drop suggests a slowdown in the pace of growth among manufacturers in the second quarter of the year.

In commodities markets, gold climbed 0.5% to $1,324.00 an ounce while crude-oil futures inched down 0.1% to $103.41 a barrel.

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