|
 * Chinese shares tumbled more than 8 percent as an unprecedented
government rescue plan to prop up valuations abruptly ran out of
steam, raising doubts about the viability of Beijing's efforts to
stave off a deeper crash.
* Commodity prices resumed their downward spiral with the broader
Thomson Reuters CRB commodities index <.TRJCRB> hitting its lowest
in six years and oil prices hitting a four-month low.
* Chinese ADRs were set for a rough start with Alibaba <BABA.N>,
Baozun <BZUN.O> and Sohu.com <SOHU.O> off between 2 percent and 5
percent.
* The S&P 500 and Nasdaq posted their largest weekly drops since
March on Friday as slowing global growth dragged commodity-related
stocks lower.
* Earnings season continues with big oil, social media stocks and
pharma companies scheduled to report this week.
* Second-quarter S&P 500 earnings have been mixed, with 74 percent
of companies beating analysts' profit expectations but just 52
percent surpassing revenue expectations, according to Thomson
Reuters data.
* Adding to the concerns regarding lukewarm earnings, the S&P 500 is
relatively expensive, trading at 16.9 times forward 12 months'
earnings, above the 10-year median of 14.7 times, according to
StarMine data with only a handful of stocks fuelling recent highs.
* Investors are also keeping a sharp eye on economic data ahead of
this week's U.S. Federal Reserve's two-day meeting, the last before
September, which still looms as the first possibility for an
interest rate increase.
[to top of second column] |
* Data expected today includes numbers for non-defense capital goods
orders, excluding aircraft at 8:30 a.m. ET (1230 GMT) and a closely
watched proxy for business spending plans is expected to have risen
0.4 percent in June at 10:30 a.m. ET.
* Teva Pharmaceutical's <TEVA.N> shares jumped 14.2 percent to
$70.60 in premarket trading after it agreed to buy Allergan <AGN.N>
generic drugs business for $40.5 billion, giving up on its bid to
buy Mylan <MYL.O>. Allegran was up 10.3 percent at $340 while Mylan
fell 11.8 percent to $58.08.
* Fiat Chrysler <FCAU.N> was down 2.2 percent at $14.81 after the
U.S. auto safety watchdog, National Highway Traffic Safety
Administration, announced a $105 million fine against the automaker
over lapses in its safety recalls.
Futures snapshot at 7:22 a.m. ET:
* S&P 500 e-minis <ESc1> were down 11.75 points, or 0.57 percent,
with 170,850 contracts traded.
* Nasdaq 100 e-minis <NQc1> were down 33 points, or 0.72 percent, on
volume of 24,687 contracts.
* Dow e-minis <1YMc1> were down 108 points, or 0.62 percent, with
21,770 contracts changing hands.
(Editing by Don Sebastian)
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