Seems Wall Street will not be able to extend Wednesday's gains as U.S. stock futures are quite a bit lower this morning, indicating resumption of the selloff is ahead. If on Wednesday investors hoped China would announce more spending, today they were disappointed when China's premier didn't announce more stimulus. In addition, auditors raised doubts about General Motors (NYSE: GM) viability.Overseas, European markets dropped Thursday after the previous session's strong rally, as investors await key interest rate decisions later in the day by the European Central Bank and the Bank of England. So far, the BOE has cut the benchmark interest rate to 0.5%, the lowest since the bank was founded in 1694. The ECB is also expected to cut rates.
In Asia, stock markets were mixed after Chinese Premier Wen Jiabao reiterated the stimulus plan announced in November, without adding new stimulus, which is what investors were expecting. Still, he said he expects the country will achieve 8% growth this year. He promised more efforts to boost exports and create jobs.
On the economic front, U.S. retail stores will be reporting February sales throughout the day and these are expected to be quite dismal.
- At 8:30 a.m. Eastern, weekly initial jobless claims figures will be reported, and these are expected to show a decline from last week's levels.
- At the same time, fourth-quarter productivity will be released.
- At 10:00 a.m., January factory orders are due out.
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