July 29, 2013- Markets Reflect a Cautious Demeaner Ahead of Data Packed Week

After managing to stay afloat last week, Wall Street has preferred to assume a cautious demeanor, as reflected by the U.S. index futures, which point to a slightly lower opening on Monday. Earlier in the global trading day, Asian stocks closed lower, while European stocks are currently mixed, with M&A news offering some support despite the underlying caution. With a host of first tier economic data and events due for the week, including the FOMC meeting, the U.S. non-farm payrolls report and advance second quarter GDP data, traders may prefer to remain on the sidelines. The Dow futures are receding 36 points, the S&P 500 Index futures are moving down 4.90 points and the Nasdaq 100 futures are slipping 7.25 points. U.S. stocks closed mixed yet again in the week ended July 26th, with the mixed close coming amid a mixed reaction to earnings and the release of mostly positive economic data even as the overbought levels tempered market momentum for much of the week. On the economic front, several key economic data are due in the unfolding week, offering scope for additional clarity on the economic outlook and in turn the monetary policy outlook. The monthly non-farm payrolls report for July and the 2-day FOMC meeting beginning on Tuesday are likely to headline the economic events of the week.