What you need to know before markets open

U.S. stock index futures pointed to a lower open on Wall Street on Friday, with futures for the S&P 500, the Dow Jones and the Nasdaq 100 falling 0.5 to 0.7%.

• U.S. jobs growth probably snapped back in May from weather-related distortions that had slowed hiring, suggesting the economy was still expanding moderately despite strong headwinds from Europe.


• China’s slowdown worsened in May as its factories saw a further deterioration in demand at home and abroad, dealing a new blow to a global economy struggling with a sharp downturn in Europe and a faltering recovery in the United States.


• Exxon Mobil Corp, the world’s largest publicly traded energy company, plans to build a multi-billion dollar chemical plant in Texas to take advantage of cheap North American shale gas, according to a U.S. environmental filing seen by Reuters.


• The Commerce Department releases April personal income and consumption data at 1230 GMT. Economists expect a 0.3% rise in income and a 0.3% increase in spending. In March, income was up 0.4% and spending rose 0.3%.


• Markit Economics Limited releases at 1258 GMT U.S. final Markit Manufacturing PMI for May. The index read 53.94 in the flash (preliminary) May release.


• Growing concern over the past actions of Wal-Mart Stores Inc executives and board members threatens to cast a pall over the world’s largest retailer’s annual shareholder meeting and 50th anniversary party on Friday.


• The Institute for Supply Management releases at 1400 GMT its May manufacturing index. Economists expect a reading of 53.9 versus 54.8 in April.


• Google Inc accused Microsoft Corp and Nokia of conspiring to use their patents against smartphone industry rivals, and said it had filed a formal complaint with the European Commission.


• The Commerce Department releases April construction spending numbers at 1400 GMT. Economists forecast a rise of 0.4%, compared with a 0.1% increase in March.


• The Economic Cycle Research Institute releases at 1430 GMT its weekly index of economic activity for May 25. In the prior week, the index read 123.1.


• Brent crude oil fell to its lowest since October 2011 as weak manufacturing activity data from the world’s second-largest oil user China raised concern of a slowdown in demand.


• European shares fell 0.4% as lingering fears over the debt-ridden economies of Greece and Spain, which in May pushed major markets to their worst monthly loss since last August, weighed on investors’ minds.


• U.S. stocks fell modestly on Thursday to close out their worst month since September as investor sentiment sank on Europe’s deepening credit problems.


• The Dow Jones industrial average dropped 26.41 points, or 0.21%, to 12,393.45. The S&P 500 Index fell 2.99 points, or 0.23%, to 1,310.33. The Nasdaq Composite lost 10.02 points, or 0.35%, to 2,827.34.

© Thomson Reuters 2012

http://business.financialpost.com/2012/06/01/...-open-321/