Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., July 27, 2022. REUTERS/Brendan McDermidRegister now for FREE unlimited access to Reuters.comSummaryCompaniesISM manufacturing activity data due at 10 a.m. ETEVO Payments surges on $4 bln deal from Global PaymentsFutures down: Dow 0.24%, S&P 0.36%, Nasdaq 0.25%Aug 1 (Reuters) - U.S. stock indexes were set to open lower on Monday following a strong rally last week on earnings optimism, with investors awaiting a factory activity data after similar surveys from China and the Eurozone fueled recession worries.The S&P 500 and the Nasdaq posted their biggest monthly percentage gains since 2020 in July on stronger-than-expected second-quarter results and on hopes the Federal Reserve need not to be as aggressive with interest rate hikes as some had feared.The upbeat mood faded on Monday as surveys showed factories across Asia and Europe struggled for momentum in July as flagging global demand and China's strict COVID-19 curbs slowed production. read more Register now for FREE unlimited access to Reuters.comThe Institute of Supply Management's manufacturing Purchasing Managers Index, due at 10 a.m. ET, is expected to show factory activity slowed in July to 52.0 from 53.0 in June, according to a Reuters poll."Manufacturing is a small part of the U.S. economy, but it tends to lead what you will later see in the services data, which is a bigger piece of the overall economy," said Randy Frederick Managing Director of Trading and Derivatives at Charles Schwab.The factory activity data will be followed by the monthly U.S. jobs report on Friday, which will be parsed for cues for the Fed's next moves.The U.S. central bank has raised interest rates by 2.25 percentage points so far this year and has vowed to be data-driven in its approach toward future hikes.Worries about a recession have weighed on stock markets this year, with the benchmark index (.SPX) down 13.3% as investors adjust their expectations on economic growth and corporate profits in the face of tightening financial conditions.However, the earnings season has showed companies were far more resilient in the second quarter than estimated.Of the 279 S&P 500 companies that have reported results, 77.8% have topped profit estimates, as per Refinitiv data. The long-term average is 66.1%.Activision Blizzard (ATVI.O), Devon Energy (DVN.N) and Simon Property Group (SPG.N) are scheduled to report quarterly results later in the day.At 8:26 a.m. ET, Dow e-minis were down 78 points, or 0.24%, S&P 500 e-minis were down 14.75 points, or 0.36%, and Nasdaq 100 e-minis were down 32.25 points, or 0.25%.Boeing Co (BA.N) gained 4.7% in premarket trading after a Reuters report that the U.S. Federal Aviation Administration approved the planemaker's inspection and modification plan to resume deliveries of 787 Dreamliners. read more Global Payments Inc (GPN.N) rose 3.5% after the fintech firm agreed to buy smaller peer EVO Payments Inc (EVOP.O) for nearly $4 billion, including debt, to expand in the business-to-business (B2B) space. read more Shares of EVO Payments jumped 20.7%.Register now for FREE unlimited access to Reuters.comReporting by Aniruddha Ghosh and Devik Jain in Bengaluru; Editing by Arun KoyyurOur Standards: The Thomson Reuters Trust Principles.
Wall Street set to open lower ahead of July factory activity data.