European markets are called to open negative this morning.
Asian shares fell, extending the global stock-market selloff to six days, and regional currencies sank on concern the U.S. recovery is faltering. Bonds rallied, with Treasury two-year yields declining to a record low.
U.S. stocks plunged on Tuesday as fears about a weak U.S. economy were enflamed after investors got another disappointing economic report – this time on consumer spending.
The selloff was so broad and so deep it pushed the S&P 500 into negative territory for the year and bond yields to their lowest levels in nine months.
“Now that we have solved the debt ceiling issue the market has moved onto the other data, which has taken a significant turn for the worse,” said Ryan Detrick, senior technical strategist with Schaeffer’ Investment Research.
The Dow Jones industrial average plunged 266 points, or 2.2%, to close at 11,867.
Events this week
Wednesday — Investors will get the ADP private employment report at 8:15 a.m. ET. Economists expect the private sector hired 95,000 fresh workers in July, down from the 157,000 the sector hired in the prior month.
In other economic data, the Commerce Department will release June factory orders data and the Institute for Supply Management’ will put out its service sector index at 10 a.m. ET. Economists are looking for factory orders to fall 1% and the ISM’ service sector index to fall to a reading of 53.1.
Time Warner, the media giant and parent company to CNNMoney, is expected to report a profit of 56 cents per share when it reports before the bell on Wednesday. Other notable companies reporting results include Clorox, MasterCard and Prudential.
Thursday — The Labor Department’ closely-watched weekly initial jobless claims data comes out at 8:30 a.m. ET, with economists expecting claims to rise to a reading of 405,000 claims from last week’ 398,000 claims.
Food company and Dow member Kraft will report its earnings after the closing bell. Analysts are looking for Kraft to post a profit of 58 cents a share.
Southwest Airlines, CVS Caremark, First Solar and insurance company AIG are also scheduled to report their financial results.
Friday — The week culminates with the Labor Department’ July jobs report, which comes out at 8:30 a.m. ET.
Outside of the government’ non-farm payrolls report, investors will also have earnings from Dow member Procter & Gamble as well as the Washington Post Co.and Viacom.