U.S. stock futures once again declined Tuesday morning ahead of several key economic reports including manufacturing and auto sales. Considering the summer rally and gauges from around the world pointing to a rough recovery road, investors are jittery not only about the market, but about a possibility of a second economic dip.Several economic indicators will be in the spotlight this morning. At 10:00 a.m. Eastern, the Institute for Supply Manufacturing's August report will be released and is expected to show a rise over 50 for the first time since January 2008.
At the same time, construction spending data is due out. Also, throughout the day, car manufacturers will release their U.S. monthly auto sales, expected to show a considerable improvement as a result of the cash-for-clunkers program.
But even as most U.S. indicators are expected to improve, some gauges from around the world haven't been as encouraging. In the U.K., manufacturing unexpectedly contracted in August and consumers paid the most debt in July, unwilling to spend. China's manufacturing, on the other hand, expanded at the fastest pace in 16 months in August, but there are worries the government may cut down stimulus spending as evident by the recent down swings in Chinese markets. No doubt, investors worry the way out of the recession will not be so smooth.
Overseas, Asian stocks closed mostly higher, relieved that China's main index has stabilized after sharp drops Monday. European markets dropped Tuesday after the mild rebound in Asia, as investors worried that stocks are overvalued and that an economic recovery will be only gradual.
On the corporate side, eBay (NASDAQ: EBAY) may finally announce on Tuesday the anticipated deal to sell its Skype Internet calling division to a group of private investors, according to the New York Times.
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