Stocks Slide as Service PMI and China Forecasts Fail To Impress Investors

Adding to yesterday’s US index losses of 0.25%-0.40%, US index futures are down 0.2%-0.6% this morning with little in the way of news to keep the party going. In Europe today, markets are quiet, trading flat to down 0.1% after Service PMI reports came in better than expected but still below 50 slightly in contraction territory.

In Asia Pacific trading, market reaction to positive Service PMI reports, and China setting a 5.0% GDP growth target was mixed. Shanghai gained 0.3%, Tokyo paused just above 40,000 and Hong Kong dropped 2.6%. Copper is flat while US Crude Oil is down 1.00%.

The US 10-year treasury note yield has dropped back under 4.20% ahead of Fed Chair Powell’s testimony to Congress which starts tomorrow. Gold is up 0.25%, trading above $2,100 per ounce as the US Dollar weakens against most currencies. The Loonie, however, is down 0.15% ahead of tomorrow’s Bank of Canada interest rate decision. US ISM Service PMI (street 53.0) and US factory orders (street -2.9%), are due at 10:00 am EST today, followed by US ADP payrolls (street 150K) tomorrow morning.

In earnings-related action, Target is up 9.7% in premarket trading after its results blew past street estimates ($2.98 vs street $2.41). More results from the retail and technology sectors are on the way tomorrow and Thursday. 

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