Futures Pointing To Early Weakness On Wall Street

(RTTNews) - On the heels of the rebound seen last week, stocks may move back to the downside during trading on Monday. The major index futures are currently pointing to a lower open for the markets, with the Dow futures down by 168 points.

The downward momentum for the markets partly reflects renewed concerns about the Chinese economy after a report from the Financial Times said the government has decided to abandon attempts to boost the stock market through large-scale share purchases.

Senior regulatory officials told the Financial Times China's leaders feel they mishandled their efforts to rescue the stock market.

The Chinese government resumed large-scale stock buying late in the trading day last Thursday to help the Shanghai Composite Index close sharply higher, but officials said the government will refrain from further large-scale buying of equities.

Nonetheless, trading activity may be somewhat subdued as traders look ahead to the release of several key economic reports in the coming days.

The monthly jobs report due on Friday may be the highlight of the week, but traders are also likely to keep an eye on reports on manufacturing and service sector activity, construction spending, and international trade as well as the Federal Reserve's Beige Book.

Shortly after the open, MNI Indicators is scheduled to release its report on Chicago-area business activity in the month of August.

Economists expect the Chicago business barometer to inch up to 54.9 in August from 54.7 in July, with a reading above 50 indicating growth.