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Stock futures dip ahead of data

U.S. Day Ahead: Cisco's Chambers set to sing European blues
Tue, Aug 14 2012
Traders work on the floor of the New York Stock Exchange August 14, 2012. REUTERS/Brendan McDermid

By Chuck Mikolajczak

NEW YORK | Wed Aug 15, 2012 7:23am EDT

(Reuters) - Stock index futures edged lower on Wednesday ahead of a report on inflation and a regional manufacturing survey which may provide clues on the state of the economy.

The S&P 500 index has stalled near early May highs after showing gains in seven of the past nine sessions, as the benchmark index has not moved more than 0.22 percent in either direction over the past five sessions and volume has declined in what is normally a seasonally slow period.

At 8:30 a.m. (1230 GMT) investors will look to the consumer price index for July and the Empire State manufacturing survey for August. Economists in a Reuters survey expect a 0.2 percent increase in CPI compared with a flat reading in June while the manufacturing survey's main index is expected to show a reading of 6.5 versus the 7.39 in July.

Data expected later in the session includes industrial production and capacity utilization data for July at 9:15 a.m. (1315 GMT) and the National Association of Home Builders/Wells Fargo August housing market index at 10 a.m. (1400 GMT).

Economists in a Reuters survey expect a 0.5 percent rise in production and a reading of 79.2 percent for capacity utilization. The housing market index is expected to show a 35 reading, identical to the July data.

S&P 500 futures fell 2.9 points and were below fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures lost 16 points, and Nasdaq 100 futures dropped 4.5 points.

Staples Inc (SPLS.O) dropped 10.8 percent to $12 in light premarket trade after the office supply chain reported lower-than-expected quarterly revenue on weak demand in North America, Europe and Australia and forecast flat sales for the fiscal year.

Other S&P 500 companies scheduled to post earnings on Wednesday include Agilent Technologies Inc (A.N), Abercrombie & Fitch Co (ANF.N), Cisco Systems (CSCO.O), Limited Brands (LTD.N), NetApp Inc (NTAP.O) and Target Corp (TGT.N).

European shares fell from four-month highs, led by basic resources stocks after a bearish update from miner ENRC (ENRC.L). .EU

Asian shares fell as investors booked gains from recent rallies after data showing strong U.S. retail sales and Germany and France avoiding a contraction last quarter calmed sentiment, with weak euro zone growth sustaining stimulus hopes.

(Reporting by Chuck Mikolajczak; Editing by Chizu Nomiyama)