Anyone hoping for a big relief rally Monday after the debt deal was disappointed. Investors around the world were in no mood to celebrate on Tuesday, either. On the heels of downside trade elsewhere, Wall Street futures pointed to a lower open.
In Asia, markets closed sharply lower Tuesday, with investors reflecting their concern about poor U.S. manufacturing data, which hurt Wall Street yesterday. Similarly weak numbers from the manufacturing sector in other regions, including China, also put a dent in Asian trade Tuesday.
Stocks in Europe, too, received a beat-down on U.S. economic worries. Italian banks were under selling pressure, but financial elsewhere in the eurozone showed gains ahead of Wall Street's open. A strengthening Swiss franc was another factor putting a dent in equities trade in Europe, with Switzerland-based names such as Novartis and Credit Suisse heading south.
In early trade Tuesday, gold rose $8 per ounce to $1,629.70. West Texas Intermediate crude fell $0.72 to $94.17 per barrel in early Nymex trading. Economic reports Tuesday include the Commerce Department's numbers on personal income and spending for June. The data, due out at 8:30 a.m. EDT, are expected to show increases of 0.2% in both areas.
Throughout the day, auto makers will be releasing their July sales figures. Analysts expect an increase over June, but with high unemployment keeping a lid on growth.
Earnings on Tap
In earnings news, DJIA component Pfizer , maker of blockbuster cholesterol drug Lipitor, said second-quarter earnings came in at $0.60 per share, topping views by a penny. Revenue was also a smidge higher than expected, at $17 billion, vs. views of $16.98 billion. The company reaffirmed its full-year guidance for 2011, and said it would continue its share repurchase plan. Pfizer shares fell $0.20, 1.05%, to $18.81 in early trade.
Following its fourth-quarter report, agricultural giant Archer Daniels Midland skidded $1.83, or 6%, to $28.65 in the premarket. The company earned $0.58 per share, badly missing views of $0.85 per share. The company cited higher income tax expenses for the miss. Revenue of $22.9 billion beat views of $20.43 billion.
Also reporting early Tuesday is clothing and accessories retailer Coach . The company topped views, earning $0.68 per share on sales of $1.03 billion. Analysts had seen net income of $0.65 per share on sales of $1.01 billion.
Like fellow luxury retailer Tiffany , Coach has seen its stock making strong advances in recent months. Shares are up 18.04% so far this year. In early trade Tuesday, Coach fell $0.64, 0.98%, to $64.65.
Another S&P 500 component, Cognizant Technology Solutions said per-share net income in the second quarter was $0.72 per share, vs. views of $0.66. Revenue also topped expectations, coming in at $1.54 billion. Wall Street had seen revenue of $1.46 billion. The company also offered an optimistic third-quarter view. Cognizant shares rose $0.345 in premarket trade, a gain of 0.49%, to $71.04.
Other premarket movers included DJIA component Alcoa , which slumped $0.20, 1.36% to $14.55. Shares are trading beneath their 10- and 40-week averages, and are showing a loss of 4.16% year-to-date.
Duke Energy jumped $0.25, 1.34%, to $18.95 ahead of the bell. The move followed a better-than-expected second-quarter report.
Among analyst actions early Tuesday, Wal-Mart was downgraded to Hold from Buy at Jefferies. The stock fell $0.22, 0.42%, to $52.40 in early trade.
Berry Petroleum was upgraded to Outperform from Market Perform at BMO Capital ahead of its earnings report on Thursday. Analysts expect earnings per share of $0.66 on revenue of $220.20 million.
Teva Pharmaceuticals climbed $0.25, 0.55%, to $44, despite an Oppenheimer downgrade to Perform from Outperform. The Israel-based generic drug maker got the OK from European regulators to market its Zoely oral contraceptive.