Here we go again.
U.S. stock futures were down nearly 2% Tuesday morning as a weak economic report from China, in the form of the Purchasing Managers' Index, tumbled to a three-year low at 49.7, which is below last month's reading of 50, and signals contraction. While excuses can be pointed to, such as the Tianjin port explosion, investors are having none of it and fear is running rampant. Though it's unlikely that the U.S. market needed a reminder, today's economic report continued to point to China's economic weakness as a moving target with no solid footing in sight.
Meanwhile, August saw the eurozone's final manufacturing PMI come in at 52.3, still pointing to growth. Oil was giving back some of its recent gains, trading around $47.75 a barrel after a huge run (since last Thursday). The U.S. dollar was trading lower against the euro.
Earnings reports of note include Science Applications (SAIC), Dollar Tree (DLTR), Bob Evans Farms (BOBE), Shoe Carnival (SCVL), Guidewire (GWRE) and Aerovironment (AVAV).
On the domestic economic calendar, we will get the Redbook weekly sales at 8:55 a.m. ET. At 9:45 a.m., the August Markit U.S. Manufacturing PMI will be released, with consensus at 52.9. At 10 a.m. look for July construction spending, as well as August ISM manufacturing, with consensus at 52.5. Finally, at 4:30 p.m., the API weekly oil inventories will be reported.
Buckle up and happy trading!