Stock futures flat on weaker Japan growth

The Japanese economy grows less than expected. The country’s export sector is hit by the European debt crisis and strong yen. The 10-year Treasury ticks higher. Activist investor Nelson Peltz will join the board of Ingersoll-Rand.

By TheStreet Staff Aug 13, 2012 9:10AM
Updated at 9:10 a.m. ET


By Andrea Tse


Stock futures were little changed Monday as investors contemplated weaker-than-expected economic growth in Japan, which added to growing evidence of a stalling global economy.


Futures for the Dow Jones Industrial Average ($INDU) were down by 7 points at 13,165. S&P 500 ($INX) futures were down by 0.6 points at 1,402. Futures for the Nasdaq ($COMPX) 100 were rising by 1.25 points to 2,722.

 

Data showed that Japan's economy expanded at a slower-than-expected annual rate of 1.4% in the April-June quarter as the country's exports suffered under the strong yen and European debt crisis. That was a significant decline from a revised 5.5% the prior quarter and missed the median forecast of 2.5%, according to Reuters.


On Friday, the markets were hit by weaker-than-expected China trade data, though economists expected that this and a batch of other weak reports from the country meant that it was imminent that Beijing would carry out a 50-basis-point cut in the reserve ratio requirement.


All three major U.S. indices closed up last week. Stocks managed to erase earlier losses Friday as investors thought it was increasingly likely that global central banks would step in to prop up the economy.


No major economic releases are expected in the U.S. Monday.


September crude oil futures were up 73 cents at $93.60 a barrel and December gold futures were up $4.40 at $1,627.20 an ounce.


The benchmark 10-year Treasury was rising 3/32, lowering the yield to 1.653%. The greenback was down 0.13%, according to the dollar index.


The FTSE in London was flat and the DAX in Germany was up 0.11%.


The Hong Kong Hang Seng index close down 0.27% and the Nikkei in Japan finished flat.


In corporate news, Activist investor Nelson Peltz will join the board of Ingersoll-Rand (IR) as he pushes to improve profitability at the industrial conglomerate, The Wall Street Journal reported, citing people familiar with the matter.


Peltz's Trian Management LP fund took a roughly 7% stake in the company in May. The company is expected to announce Peltz's appointment to the board on Monday, the people told the newspaper.


Groupon (GRPN) is expected by analysts Monday to post second-quarter adjusted

earnings of 3 cents a share on revenue of $578 million.


In the first quarter, the daily deals site posted a profit of 2 cents a share on revenue of $559.3 million.


Shares of Groupon have declined more than 60% since its IPO in November was priced at $20.


Julius Baer, the Swiss private bank, said Monday it would acquire Merrill Lynch's wealth-management business outside the U.S. and Japan from Bank of America (BAC) for $880 million.


Motorola Mobility, which Google (GOOG) bought in May, told employees Sunday it plans to cut 20% of its work force and close nearly a third of its 94 offices worldwide, The New York Times reported.



More from TheStreet.com

54Comments
Aug 13, 2012 9:28AM
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Paul Ryan certainly wasn't a surprise pick, but an interesting one nonetheless.  Looking into his voting record, he has a fairly consistent history of voting pro-marriage, pro-gun and anti-abortion.  However, bottom line, in his 13+ years in the House, he has consistently voted for some of the biggest expansions of the federal government in history. 

He voted for the Patriot Act initially, and has since voted several times to extend it.  He also voted in favor of the creation of the Dept of Homeland Security.  He voted for No Child Left Behind and also for the expansion of WIC and the Head Start Program.  He voted in favor of the Prescription Drug Bill.  He also voted to increase the debt ceiling.  Ryan also voted for TARP and for the extension of UE benefits.  In addition, Ryan has voted to expand the Temporary Aid to Needy Families program and he voted for the Energy Policy Act of 2005, costing billions.

Forget about the same ol' tired, "My side is better than your side" banter - all you establishment, big government partisan hacks should be absolutely, positively giddy this morning - you're in a "Win-Win/Can't Lose" situation.  On the one hand, you have Obama/Biden, who have a strong record of expanding the size and power of government.  On the other hand, you have Romney/Ryan, who also have a strong record of expanding the size and power of government.  To gripe about the differences in these candidates is like an alcoholic standing in front of a fully stocked bar and griping because they don't stock a particular brand of tequila.  So, instead of pi$$ing and moaning about mostly small and irrelevant differences between the candidates, relax and celebrate and have no fear; regardless of who wins, you'll see more government - not less, we'll continue to run massive deficits, our debt will continue to rise and our individual freedoms will continue to disappear.

For those of you who are truly interested in less government and more liberty, I suggest you stop feeding the donkeys and elephants.
Aug 13, 2012 9:56AM
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No offense POPS, but it's clear to anyone that has read even just a few of your posts that your attraction to Obama / Biden is purely selfish in nature.  And don't get me wrong, that's a totally legit reason for voting for someone.  If there's one thing I hope everyone learns, and the sooner the better, is that you better look out for yourself cuz no one else is going to.  But to read you try and push Obama / Biden off like they are good for the country, and have not played their part in digging this country further in the hole really makes me nauseous.
Aug 13, 2012 9:29AM
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Hey the Olmypics are over.....And all the kids did a fantastic job,even some of the oldies.....

Got a little worn on Volleyball....And don't care to watch "Big Pro" B-Ballers...

But everything else was pretty Great.....Congratulations to all that competed...

Aug 13, 2012 11:13AM
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Oh, and BTW VF (and the rest).....

Saw yet another REAL LIFE EXAMPLE this weekend of my plan to fix America in action.  And it was my old friends Bank of America actually coming to the rescue!!!

A mortgage that had been delinquent for over 3 years, had over $300k FORGIVEN and a new 30 year fixed AT TODAY'S MARKET VALUE offered that the "homeowners" are in the process of accepting.  Now if we could just speed up the process and get a lot more of these.....

America has hope!!!

Aug 13, 2012 9:35AM
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"Most people think that banks lend their deposits.  They're wrong.  Banksters even teach kids this; I witnessed it during a school field trip a few years ago where a local bank was one of the stops.  The implication left with the young people was that the bank "safely kept" the deposits, and from this they made loans."


"This is a lie, incidentally.  Banks do no such thing.  They first lend the money and then balance their reserves with the deposit that the merchant comes in with after you spend the lent money.  Note that this means they basically created money, which is a right reserved to Congress under the Constitution."


"Damn the law to Hell; laws are for little people, not the all-powerful banksters."

Aug 13, 2012 10:43AM
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Well it's easy...Real easy to see who is on the Boards so far this morning...?? No question.

Swaggs I think Biden is a JOKE, he's as old as I am almost, and he is stupid..Not with the program.

Futhermore never voted for Obama YET...But the Repubs are OFFERING NOTHING..

 

We went through 8 years of DEVASTATION of the MIDDLE CLASS..And now I have to put up with this shidt...Of NOT getting anything DONE..And many are only trying to blame the CURRENT POTUS.

That's a joke too.....The CONGRESS should be taken into the streets and TARRED&FEATHERED.

 

We ARE and HAVE been going through TWO(2) stupid Wars...That will accomplish NOTHING.

Accept killing thousands and spending billions....Good job ???

We have teetered on the worst REcession in our lifetimes, bordering on a Depression.

Like many I was retired long before 2008, we lost 10s of Thousands in Investments and retirement Savings and our properties/home lost over 30% in Equity....

And you might think, I could be happy about any of this..Even today? You would be sorely wrong.

And then we deal with morons&idiots, that say SCREW the Markets, screw the President...

And I'll never buy Goobermint Motors again....And we have to live with people like that. 

 

 

Aug 13, 2012 10:52AM
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By the way Gooch.No offense taken,really doubt you could offend me much...I will let you know when you do....Everyone is entitled to an opinion.

And I also think you will find me more of an enigma, then you might guess.....??

Aug 13, 2012 9:46PM
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Like we said this morning, manipulators in control most of the day, no surprise after the last few weeks...We rallied a bit this afternoon but it was a bad day overall...Oh well, we know these scumbags will not go away quietly...Lets see what tomorrow brings, the will probably want to continue their manipulating in the morning...We will see.
Aug 13, 2012 9:48AM
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I pretty much agree with a lot of your assessment Brutus...But.

Don't really believe Obama/Biden has expanded Government as much as you profess...

Rum and Ryan.....Will throw Grandma under the bus....NOT, over a cliff..

Look for Defence spending to expand, while cutting other safety nets..

A Loss of more Freedoms, Rights and Protections from Uncle Sam... 

More Lax Standards...On Illegal immigration, the Conservatives, have trouble without cheap labor.

And heaven forbid if we raise taxes on the 5-10%'ers, the Middle Class still has some blood left.

New Wars to keep the Defense Machine running..Stick-poking at Iran, maybe Korea ??

(guess we don't have worry about Iran blocking the Straits anymore,,We can do it easily).

Maybe expanding Gov, especially Regulators....THAT WON'T DO ANYTHING...

Yeah...I really CAN'T see myself voting for that ticket...GUESS, I really DON'T agree with you...?

Aug 13, 2012 9:33AM
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Well put, Brutus.

Good job.

Vote Gary Johnson in November.

Aug 13, 2012 12:12PM
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FYI  to all ...you all do realize the 'mainstream' conversation is taking place on TOP STOCKS, under an article entitled, Stocks Dip on Global Concerns.

In other words, MSN has secretly "shorted" us all into a quiet little room of our own.

Aug 13, 2012 10:36AM
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Last week was a good one to take a couple of days off....Volume was very low but the market was flat to up a bit....Now, this week started as expected; manipulators started doing their thing at 1007 hrs....No surprise after the last 3 or 4 weeks, they wil try to get a big chunk back in one day...We will see what happens...More later.

Aug 13, 2012 7:56PM
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The end is near....... for the Repukelicans that is! LOL
Aug 13, 2012 3:30PM
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SWAGGS......JUST IN CASE (Found it), you come back and read.....

 

I seldom classify myself for Mysterious reasons.... BUT

 

I am somewhat a Moderate, with thoughts or leanings towards Fiscal Sanity..

You might be surprised how many times I have voted for a person and not the Party.

As far as Biden, I don't care for him; Kudos to his kid, a Veteran or Military..Dad raised him right.

And the First Lady, I just don't like; But I should reserve judgement, because I don't know her personally....?

Aug 14, 2012 5:39AM
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"Oh, and Swags.  What else can one say about the banks ?  If we punish them too severely, we HAMPer their ability to maintain their new Tier 1 ratios, all the while expecting them to pay out settlement monies and provide relief in the form of forgiveness to their mortgage clients."

"Forgiveness must begin with us."

This would be like a town forgiving it's corrupt Sheriff.  Or a wife forgiving her abusive husband.  I'm all for the forgiveness...... after the proper punishment.  Forgiveness without the punishment is just enabling, and it promotes more bad behavior.  That's Parenting 101.
Aug 13, 2012 10:51AM
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as this morning unfolds team obama  gathers their thoughts and forms strategy to demagogue

and chastise the opposition.

hateful rhetoric and the destruction of the opposite number is the chicago way

what shall truly benefit this country is secondary  to sustaining power.  control, and manipulation of the american people by all political factions 
Aug 13, 2012 3:50PM
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LOM...We do not have spam here either, a blessing....

 

Also have orders in for Annaly(NLY) at 16.90

And my first purchase of Statoil (STO) at 24.90 looking mostly divs and I think up to 20%growth..IMO

 

Maybe the Banks will do the right thing, even if it is at gunpoint or under settlement regs...

Actually I would think this might bolster BAC's bottomline...

Maybe you were right by looking at it LOM.....Today around 7.90.

But I have REITS.....No Banks at or for the time being.

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