The Day Ahead: That Old Greek Feeling

 | Oct 03, 2011 | 8:30 AM EDT
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It may have that feeling of "deja vu all over again," but global markets were selling off Monday on renewed fears about Greece.

NYSE and Nasdaq futures indicated a lower open on Wall Street on the first day of fourth-quarter trading.

Greece now says it doesn't expect to reach its deficit-cutting targets for this year. Greek officials are meeting again with EU, IMF and ECB officials to go over details of the bailout plan.

European indices were mired in the red, with the region's banks plunging. Resources-related stocks also fell on worries about a slowdown in China growth. 

The euro was trading slightly lower vs. the greenback early Monday.

Asian stocks also tumbled Monday on regional economic concerns. Hong Kong's Hang Seng plummeted 4.38%. As in Europe, financials were among the biggest decliners. Shanghai markets are dark this week for a holiday.

At the beginning of the month, the pace of economic news picks up. Monday brings the Institute for Supply Management's manufacturing index for September. The report, due out at 10 a.m. ET, is expected to show an expansive reading, but with a slight dip from the prior level of 50.6.

Also at 10 is the Commerce Department's report on September construction spending. Economists expect another decline, though at a smaller level than last month's drop of 1.3%.

Auto manufacturers release their sales data throughout the day. Cars and trucks are expected to show an uptick in buying over August. Analysts also see a year-over-year increase. One factor behind the higher expectations is a greater availability of Japanese vehicles as manufacturers get back up to speed.

Gold, which posted gains on Thursday and Friday, advanced $36.30 in early Nymex trade, to $1,658.60 an ounce.

Copper continued skidding on Chinese growth concerns. The industrial metal fell $0.0675 to $3.08 per pound in electronic trading.

West Texas Intermediate crude fell $0.66 to $78.54 per barrel.

The earnings docket is light today. Before the open, shoemaker Wolverine Worldwide (WWW) said third-quarter earnings were $0.82 per share on revenue of $361.6 million, beating top- and bottom-line views.

The company, whose brands include Hush Puppies, Merrell, Wolverine and Patagonia Footwear, also lifted its yearly earnings guidance.

After the bell Team (TISI), which provides specialized construction and maintenance services to a range of industries, reports its first-quarter results. The Texas-based small-cap is expected to earn $0.25 per share and revenue of $123.43 million.

A big premarket mover was Yahoo (YHOO), advancing $0.66, 5.01%, to $13.83. On Friday, Jack Ma, CEO of Chinese Internet company Alibaba, said he is "very interested" in acquiring Yahoo.

Yahoo currently owns about 40% of Alibaba. 

Another early mover was former DJIA and S&P 500 component Eastman Kodak (EK), zooming $0.27, which, in a low-priced stock, works out to an enormous gain of 34.6%, to $1.05.

The move followed a 67% plummet last week, on news that the company had hired a law firm known for its work on bankruptcy transactions.

Graphics chip maker Nvdia (NVDA) slumped $0.26 in early trade, a loss of 2.08%, to $12.25. The loss comes on the heels of last week's 9.3% decline in the stock. Year-to-date, Nvdia has posted a share-price loss of 18.77%.

Monday's analyst actions included a Stifel Nicolaus upgrade of Amazon (AMZN) to Buy from Hold. The analyst cited upside from Amazon's new Kindle Fire tablet, as well as its cloud-computing service. It also said Amazon's cost structure should contribute to sustainable growth.

Amazon shares rose $2.45, 1.13%, to $218.68 in early trade.

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