April 15, 2013-Stocks Look to Lower Trading on Weak China Data

Wall Street has not taken kindly to the continuing flow of soft economic numbers, which have begun to question the conviction traders have built up in the economic recovery. The major U.S. index futures point to a lower opening on Monday. Following up with last week's weak U.S. retail sales and consumer sentiment data, China reported a slowdown in first quarter growth. Risk aversion is on the rise, as reflected by the extended pullback in commodity prices. Traders now turn their attention to the results of a regional manufacturing survey, a homebuilder confidence reading and Citigroup's (C) earnings, for gaining additional clarity on the economic outlook. The Dow futures are moving down 58 points, while the S&P 500 futures are slipping 9 points and the Nasdaq 100 futures are receding 13.75 points. U.S. stocks reversed course and ended the week ended April 15th higher, as positive earnings expectations and solid global economic data kept trader sentiment upbeat. The exuberant rally by the equity markets has made traders uneasy, forcing them to focus on each incoming economic evidence as they attempt to assess the strength of the economic recovery. In the unfolding week, the markets are expected to closely track reports on the housing and manufacturing sectors.