http://www.reuters.com/article/2011/09/30/us-markets-stocks-idUSTRE7850EA20110930?feedType=nl&feedName=usbeforethebell
Stock futures dropped on Friday following information demonstrating a continued contraction in China stirred worries the global economy was slowing down.
China's manufacturing sector reduced for a third straight month in September, suggesting that the world's second-largest economy is not immune to global headwinds, while factory inflation quickened.
Information later in the morning in the us will give a picture of consumer spending and earnings last month, in addition to September consumer confidence and Midwest manufacturing.
The Commerce Department will release personal income and consumption data for August at 8:30 a.m. EDT. Economists in a Reuters survey expect a rise of 0.1 percent in earnings and a 0.2 % increase in spending. In July, earnings increased 0.3 percent and spending rose 0.8 %, with a 1.0 percent rate in the preliminary (second) estimate.
The Institute of Supply Management-Chicago's September index of manufacturing activity is scheduled for 9:45 a.m. EDT and is expected to show a drop to 55.5 from August's 56.5.
"It's a continuation of a horrible quarter, a horrible month," said Peter Cardillo, chief market economist at Rockwell Global Capital in New York.
"What we are looking at here is a market that will focus on the financial data here in the States -- the Chicago PMI and spending probably could be the market drivers of the day. Unless the economic data falls off a cliff, then we could see a repeat of yesterday, in and out of the plus-and-minus column."
The Thomson Reuters/University of Michigan Surveys of Consumers final September consumer sentiment index is expected at 9:55 a.m. EDT. Economists in a Reuters survey expect a reading of 57.8, flat with the early September figure.
The benchmark S&P 500 index has dropped more than 12 percent this quarter and is on track for its worst quarterly performance since 2008 as a euro zone debt crisis and weakening economic data fuel concerns of a global slowdown.
Market volatility is expected to remain high as traders react to European headlines and attempt to gauge the commitment of governments and institutions as they work to prevent a Greek default.
S&P 500 futures fell 12.3 points and were beneath fair value, a formula that examines pricing by taking into account interest rates, dividends and time to expiration of the contract. Dow Jones industrial average futures lost 119 points, and Nasdaq 100 futures dipped 17.25 points.
McGraw-Hill Companies Inc (MHP.N) is in advanced talks to combine its S&P Indexes business with CME Group Inc's (CME.O) Dow Jones Indexes, a source familiar with the situation reported on Thursday.
Industrial conglomerate Ingersoll Rand Plc (IR.N) cut its third-quarter and full-year earnings forecast to below market estimates, pointing to lower-than-expected demand at its key North American residential and commercial security markets.
European shares extended losses and were on track to record their worst quarterly performance since late 2008 as fears mounted about a global economic slowdown. .EU
Asian equities also dropped, stretching the most severe monthly performance since the most volatile days of the global financial crisis in October 2008. Chinese shares racked up sharp losses as investors worried about a property market correction.
U.S. stocks generally increased in a erratic session on Thursday as stronger-than-expected financial information and German agreement of a beefed-up euro-zone crisis fund relieved two of the worst worries hanging over the economy.
