Morning Report: U.S. Futures Follow Asia and Europe Lower

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Includes: AIA, DG, DJCO, SEED, SKS, SPY, VGK
by: optionMONSTER

By Bryan McCormick

US stock index futures are lower this morning after Asian markets fell markets sharply. European shares followed that trend lower, which helped pull US futures into negative territory. At current levels, the indexes have fallen to well-established support levels at the lows of the recent trading range. Those are 1760 for the Nasdaq 100, 1040 for the S&P 500 and 585 for the Russell 2000.

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Currency trading is relatively flat, but there is a renewed surge into Treasuries. This may be risk aversion ahead of economic news in the US including the Chicago Purchasing Managers Index at 9:45am eastern time and Consumer Confidence at 10am. Commodities fell, with crude oil down by more than 1 percent and industrial metals moderately lower.

Merger and acquisition news has had little impact on the major indexes, largely because the targets have been relatively small. Saks (NYSE:SKS) is up by more than 24 percent this morning after the Daily Mail reported rumors that the company is being targeted by private-equity buyers looking to pay $1.7 billion, or $11 per share. SKS closed at $6.60 yesterday and is trading for $8.30 in the premarket.

In earnings news, Dollar General (NYSE:DG) climbed by more than 2 percent after raising its full-year outlook. At the other end of the spectrum, Origin Agritech's (NASDAQ:SEED) report is being met with selling after its revenue missed forecasts. SEED is down more than 8 percent on light volume before the bell.

Disclosure: No positions