October 09, 2012-Markets Cautious on Reduced Global Growth Outlook

With tidings and prognostication of worsening global growth coming in thick and fast, Wall Street seems to have preferred to remain cautious on Tuesday, as indicated by the U.S. index futures, which are currently modestly lower. The latest to offer a muted outlook was the International Monetary Fund, which highlighted the alarmingly high risks facing the global economy. Earnings worries could also add to economic concerns, as aluminum maker Alcoa (AA) kick starts third quarter reporting season later today. The company is expected to report a sharp drop in earnings and revenues from the year-ago period. The Dow futures are declining 7 points and the S&P 500 futures are moving down 1 point, while the Nasdaq 100 futures are slipping 6.50 points. U.S. stocks declined on Monday amid worries that global growth will be suffer due to the encircling economic uncertainties. The Dow Industrials ended down 26.50 points or 0.19 percent at 13,584 and the S&P 500 Index closed 5.05 points or 0.35 percent lower at 1,456, while the Nasdaq Composite closed at 3,112, down 23.83 points or 0.76 percent. On the economic front, the small business optimism index based on a survey conducted by the National Federation of Independent Business is due at 7:30 am ET. The index is expected to improve to 93.3 in September from 92.9 in August. The results of the Treasury auction of 3-year notes are also due.