Dow seen opening flat as investors seek central bank stimulusReported by Proactive Investors on Monday, 30 July 2012 (on July 30, 2012)
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U.S. equity markets looked set to open lower Monday as investors await potential action by the European Central Bank and possible signals of more stimulus to come from the Federal Reserve .
In pre-market trading, the Dow Jones Industrial Average shed 16 points, or 0.1%, to 13,017.15, the S&P 500 declined 2.7 points to 1,379.80 while the NASDAQ gained 0.25 points to 2,642.25.
Friday U.S. markets ended in the green with the Dow pushing back above the 13,000 level for the first time since early May. At the closing bell, the Dow was up 1.46%, the S&P 500 was 1.91% higher and the NASDAQ ended the session up 2.24%.
ECB President Mario Draghi late last week sparked a global rally after vowing the institution would do "whatever it takes" within its mandate to preserve the euro zone.
Spain's economy, however, continued to shrink for a third straight quarter. The struggling country's GDP fell 0.4% during the second quarter.
In the U.S. the Federal Reserve holds its regular rate-setting meeting this week. Expectations have grown for the Fed to extend a pledge to keep interest rates low as it discusses the possibility of additional efforts to stimulate the economy.
In corporate news, shares of HSBC (NYSE:HBC) were slightly higher early trading Monday after reporting its six-month profit beat estimates.
The London-based bank put aside $2 billion to compensate U.K. customers for misselling of payment-protection insurance.
The provisions are also intended to cover the cost of "certain law enforcement and regulatory matters" after a U.S. Senate report this criticized HSBC for failing to prevent billions of dollars worth of money transfers that Senate investigators believe were linked to drug cartels and terrorist groups.
Oil major Chevron Corp. (NYSE:CVX) said it will spend about $500 million to raise output from Bangladesh's largest gas field.
The plan includes drilling new wells in the Bibiyana field in northwest Bangladesh, expansion of a gas processing plant and construction of an enhanced liquids recovery unit, the company said in a statement.
CIT Group's (NYSE:CIT) second-quarter loss widened as the commercial lender drew in less interest income and was hit by debt-refinancing charges, overshadowing lower credit loss provisions.
The firm reported a loss of $70.7 million, or 35 cents per share, compared with a year-earlier loss of $49.7 million, or 25 cents a share. The latest period included $286 million in debt-refinancing charges, compared with $163 million a year earlier.
Analysts surveyed by Thomson Reuters forecast a per-share loss of 57 cents
Fiserv (NASDAQ:FISV) also reports results Monday with the financial analytics firm is predicted to post earnings per share of $1.26.
On the economic front, no major releases are scheduled for Monday. During the week, data on housing and manufacturing is due with all eyes on the July employment report on Friday.
Commodities
In NYMEX futures trading, crude was unchanged at $90.13 a barrel while gold futures rose 50 cents to $1,618.50 an ounce.
Europe
In mid-morning trading, the FTSE 100 rose 0.6%, the DAX added 1.1% while the CAC 40 gained 0.8%.
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