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US STOCKS-Wall St to open lower after 2-day run; ISM services on tap
November 5, 2013 / 2:00 PM / 4 years ago

US STOCKS-Wall St to open lower after 2-day run; ISM services on tap

* ISM Services data due

* Michael Kors climbs after earnings

* GT Advanced jumps on deal with Apple

* Futures off: Dow 63 pts, S&P 6.7 pts, Nasdaq 11.5 pts

By Chuck Mikolajczak

NEW YORK, Nov 5 (Reuters) - U.S. stocks were poised for a lower open on Tuesday ahead of data on the services sector, putting the S&P 500 on pace to halt a two-day streak of gains.

The Institute for Supply Management will release its October non-manufacturing index at 10:00 a.m. ET (1500 GMT). Economists in a Reuters survey forecast a reading of 54.0 versus 54.4 in September.

Data will be closely eyed this week to gauge the strength of the economy; these include readings on gross domestic product and payrolls that were delayed by a partial government shutdown in October.

“For the market to continue along you actually need a combination of moderate news,” said Rick Meckler, president of investment firm LibertyView Capital Management in Jersey City, New Jersey.

“Really good news, economically has been a cause for concerns over higher interest rates, really weak news is going to cause concerns over earnings, so the market is going to be looking for these wishy-washy numbers alternating for the next couple of months.”

The Federal Reserve has indicated it will not begin to pare its bond-buying program of $85 billion in long-term assets per month until the economy shows signs of improvement, a mantra supported by three central bankers on Monday.

The S&P 500 is up 24 percent for the year and the Dow is up 19.3 percent, putting both indexes on track for their best yearly performances since 2003, largely driven by the stimulus measures of the Fed.

S&P 500 futures fell 6.7 points and were below fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures lost 63 points and Nasdaq 100 futures shed 11.5 points.

Michael Kors Holdings Ltd gained 4.2 percent to $77.88 in premarket after the luxury apparel retailer reported a better-than- expected 40 percent jump in quarterly revenue.

GT Advanced Technologies jumped 25.1 percent to $10.48 in premarket trading after the company said Apple Inc will open a manufacturing facility in Arizona in partnership with the mineral crystal specialist to make sapphire materials for Apple’s electronic devices.

CVS Caremark Corp gained 1.8 percent to $63.12 in premarket trade after the drugstore operator and pharmacy benefits manager posted a higher-than-expected quarterly profit and raised its forecast for the year.

Mosaic Co lost 1.9 percent to $45.85 in premarket after the fertilizer company reported sharply lower third-quarter earnings.

Leapfrog Enterprises Inc slid 10.3 percent to $7.78 before the opening bell after the toy company cut its full-year sales forecast.

With 75 percent of S&P 500 companies having reported results through Monday morning, 69 percent have topped Wall Street’s expectations, above the long-term average of 63 percent. Just 53 percent have topped revenue forecasts, below the 61 percent average since 2002, Thomson Reuters data showed.

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