By Barbara Kollmeyer, MarketWatch
China stocks tumble after growth downgraded
LONDON (MarketWatch) -- Caution was the byword on Thursday, with
futures flat after a losing session for Wall Street, with investors
eyeing a crop of data as they wait for nonfarm payrolls at the end
of the week.
Downbeat news on China's economy and a meeting of the European
Central Bank ahead are also in the mix. On the corporate front,
deal news for AbbVie Inc. and Pharmacyclics Inc. could make those
shares active.
Futures for the Dow Jones Industrial Average (DJH5) held
virtually flat at 18,087. The same held true for S&P 500 index
(SPH5) futures, trading around 2,096.50, and those for the
Nasdaq-100 (NDH5), trading at 4,445.25.
U.S. stocks logged the second-straight session of losses on
Wednesday, with the S&P 500 (SPX) hitting its lowest level in
two weeks. Among the disappointments was private-sector employment
data, which is used by economists to get a feel for the bigger
employment report, due Friday.
The Nasdaq Composite (RIXF) also pulled back further from its
psychological milestone of 5,000, which it hit Monday.
Read: The 3 things most likely to kill the bull market's buzz
(http://www.marketwatch.com/story/the-3-things-most-likely-to-kill-the-bull-market-2015-03-04)
As well as nervousness ahead of nonfarm payrolls, global
economic worries were back in the headlights for investors after
China -- viewed as the world's growth engine -- cut its economic
growth forecast to around 7% this year.
Read: China lowers growth target
(http://www.marketwatch.com/story/china-lowers-growth-target-to-about-7-2015-03-04-191032533)
Draghi ahead: The ECB's monetary policy meeting also loomed for
later. While no change in policy is expected when a decision hits
at 7:45 a.m. Eastern Time, investors will be listening up to the
news conference from ECB President Mario Draghi at 8:30 a.m.
Eastern. They'll be looking for details of how the central bank
will implement its trillion-euro quantitative-easing program, and
when in March it will kick off.
The euro (EURUSD) continued to hit fresh 11-year lows
(<p>http://www.marketwatch.com/story/euro-sinks-to-fresh-11-year-low-as-ecb-looms-2015-03-05%3c/p%3e%3cp/%3e)
ahead of that meeting.
Read: 5 things to know about the ECB's QE ahead of key meeting
(http://www.marketwatch.com/story/5-things-for-investors-to-know-about-the-ecbs-qe-ahead-of-thursdays-meeting-2015-03-04)
Data is also on tap for U.S. investors. Weekly jobless claims is
coming at 8:30 a.m. Eastern Time, with fourth-quarter productivity
and unit-labor costs coming at the same time. Factory orders for
January are due at 10 a.m. Eastern.
San Francisco Federal Reserve President John Williams, who is a
voting member, will speak on the economic outlook at the CFA
Society of Hawaii at 11:15 p.m. Eastern.
Stocks to watch: AbbVie Inc. [s: abbv] said it would buy cancer
biotech Pharmacyclics Inc.(PCYC) in a $21 billion cash-and-stock
deal. Shares of Pharmacyclics were up nearly 8% in thin premarket
trading.
Shares of Costco Wholesale Corp.(COST) could be active after the
retailer reported a quarterly profit
(http://www.marketwatch.com/story/costco-profit-up-29-helped-by-57-mln-tax-boost-2015-03-05)
that beat analysts expectations.
Other markets: While stock futures flattened out, European
stocks rose ahead of the ECB meeting and the euro slid.
The Hang Seng Index
(http://www.marketwatch.com/story/chinese-stocks-decline-amid-fears-of-an-economic-slowdown-2015-03-05)
fell 1.1%, the biggest daily drop in a month after China's Premier
Li Keqiang cut the country's growth target and said "economic
downward pressure is still intensifying."
In other markets, oil prices
(http://www.marketwatch.com/story/oil-fluctuates-on-chinas-lower-growth-target-libyan-supply-issues-2015-03-05-21035958)(CLJ5)
moved higher, and gold
(http://www.marketwatch.com/story/gold-looks-to-end-losing-streak-at-three-2015-03-05)(GCJ5)
was marginally lower.
Subscribe to WSJ: http://online.wsj.com?mod=djnwires