Wall Street dips as housing data disappoints
Credit: Reuters/Brendan McDermid
A trader watches his screen on the floor of the New York Stock Exchange July 23, 2014.
While merger and acquisition activity gave investors a reason to buy, there have been a number of high-profile earning disappointments this quarter, including from Amazon.com (AMZN.O) and Caterpillar (CAT.N). Those results have pointed to weak conditions for market-moving bellwethers, even as more companies than usual have beaten analyst expectations for both earnings and revenue this quarter.
The S&P 500 ended at a record Thursday but fell on Friday, pressured by Amazon's and Visa Inc's (V.N) weak results. The benchmark index is less than 1 percent from an all-time intraday record, and on Friday, found support at its 14-day moving average, suggesting a recent positive trend in equities remains intact.
Dollar Tree Inc (DLTR.O) offered to buy Family Dollar Stores Inc (FDO.N) for about $9.2 billion, or $74.50 per share in cash and stock. Shares of Family Dollar jumped 22 percent to $74 in light premarket trading while Dollar Tree was up 3.7 percent to $56.24.
S&P 500 e-mini futures fell 1.25 point and were below fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average e-mini futures fell 8 points and Nasdaq 100 e-mini futures lost 0.25 point.
Investors were looking ahead to pending home sales, due at 10:00 a.m. Sales are seen rising 0.5 percent in June, compared with a rise of 6.1 percent in May. Last week, June new home sales fell 8.1 percent, the biggest drop in almost a year.
Financial data firm Markit will release its July read on the U.S. services sector at 9:45 a.m. That is seen falling to 59.8 from 61 in June. Later this week will see the release of data on second-quarter gross domestic product, as well as the July payroll report.
Cisco Systems Inc (CSCO.O) shares dipped 0.8 percent to $25.75 before the bell. On Sunday, Pacific Crest downgraded the stock to 'sector perform' from 'outperform.'
El Pollo Loco Holdings Inc (LOCO.O), a restaurant chain which went public on Friday, continued the strength of its trading debut to rise 9.4 percent to $26.29 in premarket trading. The stock was the Nasdaq's most active premarket mover.
(Editing by Bernadette Baum)
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