US STOCKS-Wall St to open flat after selloff on global growth concerns

miércoles 8 de octubre de 2014 09:08 GYT
 

(Updates prices, adds comment)

By Rodrigo Campos

NEW YORK Oct 8 (Reuters) - U.S. stocks were set to open little changed on Wednesday, following a selloff that took the S&P 500 to its lowest level in nearly two months, as concerns lingered over how a strong dollar and weak global growth may impact corporate earnings.

China's services sector growth weakened slightly in September as new business cooled in the world's second-largest economy. That follows weak industrial data out of Germany, the euro zone's growth engine.

Weakness in other economies and the expectation that interest rates will begin to rise in the United States as other major central banks continue to ease have boosted the U.S. currency. The dollar index is on track to post its first weekly loss in the last 13.

"Investors are concerned the strong dollar and the weakness in the euro zone will adversely affect third quarter earnings and more importantly guidance for the fourth quarter," said Art Hogan, chief market strategist at Wunderlich Securities in New York.

He said the Ebola epidemic and the advance of Islamic State in Syria also kept investors on edge.

S&P 500 e-mini futures were up less than a point and fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract, indicated a flat open. Dow Jones industrial average e-mini futures fell 12 points and Nasdaq 100 e-mini futures added 1 point.

Minutes from the most recent meeting of the U.S. Federal Reserve are due at 2:00 p.m. EDT (1800 GMT). With the Fed set to complete rolling back its massive monthly bond-buying purchases this month, investors will be looking for clues on how soon it plans to lift interest rates.   Continuación...