Wall Street Sees Red

The Fitch downgrade of the U.S. government’s credit rating sparked a fiery rebuttal from the White House. Investors are worried about the debt burden and rating to AA+ from AAA. The agency has cited fiscal deterioration and repeated debt ceiling standoffs for the downgrade.

Private sector employment and the Labor Department’s economic announcements might get special attention on Wednesday.

Advanced Micro Devices (AMD), Electronic Arts (EA), and Starbucks (SBUX) have scheduled their earnings results today.

Early signs from the U.S. Futures Index suggest that Wall Street might open lower.
Asian shares finished down, while European shares are trading in the negative.

As of 7.35 am ET, the Dow futures were declining 113.00 points, the S&P 500 futures were down 22.25 points, and the Nasdaq 100 futures were sliding 110.75 points.

The U.S. major averages finished mostly lower on Tuesday. The Nasdaq slid 62.11 points or 0.4 percent to 14,283.91 and the S&P 500 fell 12.23 points or 0.3 percent to 4,576.73, but the Dow rose 71.15 points or 0.2 percent to 35,630.68, its best closing level in well over a year.

On the economic front, the ADP Employment Report for July will be published at 8.15 am ET. The consensus is for 185,00, while it was up 497,000 in the prior month.

Three-year and ten-year Treasury Note announcement is scheduled at 8.30 am ET.

30-year Treasury Bond announcement is expected at 8.30 am ET.

The Treasury Refunding announcement will be at 8.30 am ET.

The Energy Information Administration or EIA’s Petroleum Status Report for the week will be published at 10.30 am ET. In the prior week, the crude oil inventories were down 0.6 million barrels and the gasoline inventories were down 0.8 million barrels.

Asian stocks tumbled on Wednesday. Chinese and Hong Kong markets suffered heavy losses today.

China’s Shanghai Composite index dropped 0.89 percent to 3,261.69 while Hong Kong’s Hang Seng index slumped 2.47 percent to 19,517.38.

Japanese shares posted were lower. The Nikkei average plummeted 2.30 percent to 32,707.69, while the broader Topix index settled down 1.52 percent at 2,301.76.

Australian markets fell the most in nearly a month. The benchmark S&P/ASX 200 dropped 1.29 percent to 7,354.60 while the broader All Ordinaries index closed 1.24 percent lower at 7,568.40.

European shares are trading lower. Among the major indexes in the region, the CAC 40 Index of France is declining 44.29 points or 0.60 percent. The German DAX is losing 122.55 points or 0.77 percent, the U.K. FTSE 100 Index is down 76.94 points or 1.01 percent.

The Swiss Market Index is declining 90.71 points or 0.80 percent.

The Euro Stoxx 50 Index, which is a compilation of 50 blue chip stocks across the euro area, is down 0.75 percent.

Source: Read Full Article