Stocks Likely To See Additional Selling Pressure In Early Trading - U.S. Commentary

Mon. July 06, 2009; Posted: 08:34 AM

(RTTNews) - After ending the previous, holiday-shortened trading week on a considerable down note, stocks are likely to see further selling pressure on Monday. The major index futures are all in negative territory, with Dow futures down by 53 points.

Shortly after the opening bell, traders will be presented with the Institute for Supply Management's report on activity in the service sector for June. The index is expected to show a modest improvement from the month-ago levels, although it is still expected to indicate a contraction. The report is set to be released at 10 a.m. ET.

On the corporate front, beleaguered automaker General Motors has been granted permission by a U.S. bankruptcy judge to sell most of its assets to a U.S Treasury-funded buyer.

Regis (RGS | Quote | Chart | News | PowerRating) said its fourth-quarter revenues decreased 2.5 percent to $625 million from $641 million in the year-ago period. Total same-store sales for the quarter were down 4.0 percent. Wall Street analysts estimated revenues of $617.95 million for the quarter.

Thursday, stocks ended the truncated week sharply lower following the release of disappointing employment data. The Dow closed down by 223 points at 8,281, the Nasdaq fell by 49 points 1,797, and the S&P 500 finished down 27 points at 896.

Crude oil futures are moving lower in early commodities trading, falling by $2.05 to $63.58 a barrel after ending the previous session down $2.58 at $66.73 a barrel. The price of gold is also declining, dropping by $10.30 to $922.20 an ounce.

On the currency front, the U.S. dollar is climbing against the major European currencies, rising against the euro to $1.3902 while advancing to $1.6148 versus the pound. Meanwhile, the dollar is down against the yen, moving to 95.27 yen.

In overseas trading, stock markets across the Asia-Pacific region ended Monday's session mostly lower. Japan's benchmark Nikkei 225 Index closed down by 1.4 percent, while Hong Kong's Hang Seng Index slipped by 1.2 percent.

The major European markets are also moving to the downside, with the German DAX Index and French CAC 40 Index down by 1.5 percent and 1.3 percent, respectively. The U.K.'s FTSE 100 Index is also retreating, showing a decline of 1.2 percent.

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