Futures lower on Fed and China Concerns. Stocks to Watch: AA, CSCO, EOG, XOM, FCX, KKR, RTP, SMG, and TXN

Published on Tuesday, 10 August 2010 08:40 Written by Christopher Lynn

New York, August 10^th (TradersHuddle.com) – Stock futures pointed to a lower open, after trade data raised concerns China slowdown will impact global growth, as market participants await the Federal Open Market Committee's (FOMC) statement later in the day amid speculation the Fed may take new measures to stimulate the economy.

In China, trade data showed July imports grew at the slowest pace since November, missing economists’ forecasts. The trade surplus increased to an 18-month high, sparking economic global growth concerns.

But focus will be on the Fed, with the Federal Open Market Committee planning to release a statement at 2:15 p.m.

Today’s stocks to watch: Alcoa (NYSE:AA), Cisco Systems (NASDAQ:CSCO), EOG Resources (NYSE:EOG), Exxon Mobil (NYSE:XOM), Freeport McMoRan (NYSE:FCX), Kohlberg Kravis Roberts (NYSE:KKR), Rio Tinto PLC (NYSE:RTP), Scotts Miracle-Gro (NYSE:SMG), and Texas Instruments (NYSE:TXN).

Alcoa (NYSE:AA), the aluminum producer, fell more than 0.5% in pre-market trading and Freeport McMoRan (NYSE:FCX), the largest publicly traded copper producer, slid close to 2%, as metal prices fell on the London Metal Exchange after disappointing trade data from China sparked concern over future demand.

Cisco Systems (NASDAQ:CSCO), the networking giant, will be reporting its quarterly results tomorrow after the close. Market participant will be taking positions ahead of the event, with Wunderlich recommending buying ahead of tomorrow’s report. The firm expects Cisco to report strong revenue and earnings that reflect volume that is unconstrained by supply relative to the last two quarters and a benign competitive environment in private network settings. They believe there is ample room for multiple-expansion.

EOG Resources (NYSE:EOG), the natural gas and oil producer, gained 0.42% in pre-market trading, despite lower crude oil prices after analysts at Goldman Sachs added EOG to the Conviction Buy List.

Exxon Mobil (NYSE:XOM), the largest U.S. energy producer, fell more than 0.5% in pre-market trading as crude prices traded 1.5% lower after data showed China, the world’s largest energy consumer country, imports fell in July.

Kohlberg Kravis Roberts (NYSE:KKR), the private equity firm, fell close to 1% in pre-market trading as the firm canceled plans for a $500 million public offering.

Rio Tinto PLC (NYSE:RTP), the mining company, fell close to 3% on China concern. Analysts at Dalham Rose are increasing its 2010 and 2011 earnings estimates. Its new price target for Rio is $115, up from $85 per share.

Scotts Miracle-Gro (NYSE:SMG), the largest marketer of branded consumer lawn and garden products in the world, reported better than expected earnings on revenue that were in-line with the average analyst estimate. The company reported a profit of $2.61 per share, $0.16 better consensus; revenues climbed 0.6% year over year to $1.24 billion. Scotts Miracle-Gro reaffirmed its guidance for the full year 2010, sees EPS of $3.25-3.35, versus consensus of $3.31 per share. The company announced that its Board of Directors has authorized a $500 million stock repurchase plan over the next four years. The Board also approved to double the quarterly dividend to $0.25 per share.

Texas Instruments (NYSE:TXN), the maker of digital signal processing (DSP) and microcontroller (MCU) semiconductors, was upgraded to Outperform from Market Perform at Raymond James. Shares fell 0.31% in pre-market despite the upgrade news.