May 02, 2012- Stocks Look to Edge Lower

The major U.S. index futures are pointing to a lower opening on Wednesday, with sentiment remaining modestly negative amid the release of a report showing a smaller than expected increase in consumer spending for April. The Dow and the S&P 500 Index are going into the session after four straight sessions of gains. Now the focus shifts to a regional manufacturing data that is due to be released shortly after the markets open. Nevertheless, the markets may show a muted performance, given the caution ahead of some key data points. Some offsetting positive impact could from some a few deal announcements of the day. Meanwhile, negative headlines on Europe’s debt crisis continue to trickle in, with the Spanish statistical office confirming that the nation has entered a double dip recession. At the same time, some Spanish banks suffered a credit rating downgrade at the hands of Standard & Poor’. Despite underlying economic concerns, U.S. stocks advanced solidly in the week ended April 27th, capitalizing on strong corporate earnings news, fairly successful European debt auctions and a positive U.S. pending home sales data.