Member access

4-Traders Homepage  >  News

News

Latest NewsCompaniesMarketsEconomy & ForexCommoditiesHot NewsMost Read NewsRecomm.Business LeadersVideosCalendar 

U.S. Stock Futures Down Ahead of Jobless Claims, Home-Sales Data

02/21/2013 | 08:28am US/Eastern
Recommend:
0

--Stock futures decline as weak euro-zone data, overseas weakness weigh

--Europe, Asia broadly lower on weak purchasing managers data

--Worries that the Fed might slow asset purchases also weigh on markets

--Weekly jobless claims, existing home sales, leading economic indicators on tap

 
   By Tomi Kilgore 
 

NEW YORK--U.S. stock futures declined Thursday, extending the sharp losses seen in previous session and in overseas markets, with weak euro-zone data weighing further on sentiment ahead of U.S. jobless claims and home-sales data.

About 90 minutes ahead of the open, Dow Jones Industrial Average futures slipped 23 points, or 0.2%, to 13866. On Wednesday, the Dow fell 108 points, or 0.8%, the second-biggest point and percentage decline of the year, after the Federal Reserve hinted it may end its stimulative asset-purchase program sooner than expected.

Standard & Poor's 500-stock index futures gave up three points, or 0.2%, to 1504 and Nasdaq 100 futures lost 10 points, or 0.4%, to 2727.

Changes in stock futures don't always accurately predict stock moves after the opening bell.

Initial claims for jobless benefits in the latest week, due out at 8:30 am. EST, are expected to rise slightly to 350,000 from the previous week's 341,000. At the same time, the consumer price index for January is seen increasing by 0.1% on the month, or by 0.2% excluding food and energy.

At 10 a.m., existing-home sales for January are expected to decline 1% to a seasonally adjusted annualized rate of 4.89 million; the Philadelphia Federal Reserve's February index of business activity is seen rising to +3.0 from January's -5.8; and the Conference Board's Leading Economic Index for January is forecast to gain 0.3%.

In corporate news, shares of Wal-Mart gained 0.4% in premarket trading after the blue-chip discount retailer reported fiscal fourth-quarter earnings that topped analyst estimates, helping to offset a first-quarter earnings outlook that was below current analyst projections.

Among other Dow components, Hewlett-Packard declined 0.4%. The technology company reports fiscal first-quarter results after the closing bell.

European markets were broadly lower, with the Stoxx Europe 600 down 1.3%, on the back of disappointing euro-zone data and worries that the Fed may soon start winding down its asset purchases. Markit's preliminary composite purchasing-managers' index for the euro zone fell to 47.3 in February from January's 48.6, and below expectations of 48.5. Readings below 50 indicate contraction. Within the euro zone, Italy's FTSE MIB skidded 2.7% to a two-month low and Germany's DAX slid 1.9%.

The weak data sent the euro down to a six-week low against the dollar. Meanwhile, the dollar lost ground against the yen.

Asian markets also suffered steep declines, highlighted by a 3% tumble in China's Shanghai Composite to a one-month low, the biggest percentage decline seen since November 2011. Exacerbating worries about the Fed easing up on its stimulus program, China's State Council said on Wednesday that it would continue with market controls to curb increases in property prices.

Japan's Nikkei Stock Average shed 1.4% and Australia's S&P ASX 200 dropped 2.3%.

Front-month February gold futures slipped 0.3% to a seven-month low of $1,572.50 an ounce, putting them on an early track to suffer a sixth-straight loss. April crude-oil futures lost 1.2% to $94.08 a barrel.

In other corporate news, Tesla Motors shed 7.8% after the electric-car maker reported a wider-than-anticipated fourth-quarter loss and revenue that rose less than expected, as gross margin narrowed sharply. However, it said it expected to report a slight profit for the current quarter versus expectations of a slight loss.

VeriFone Systems tumbled 35% after the electronic-payments company indicated that fiscal first-quarter earnings and revenue would fall well short of expectations, citing weak economic conditions in Europe and delayed projects from several major customers. It also provided a downbeat outlook for the current quarter.

Pegasystems surged 21% after the business process-management company reported much better-than-expected fourth-quarter earnings and revenue, and provided a 2013 outlook that was above current projections.

Hormel Foods reported fiscal first-quarter earnings and revenue that were inline with analyst estimates and raised its full-year earnings outlook slightly to reflect the benefit of buying the Skippy peanut-butter business last month. The packaged-food company's stock was still inactive in the premarket.

Crocs declined 3.5%; the shoe maker reported fourth-quarter earnings that beat expectations but provided a current-quarter earnings outlook that was below forecasts.

Write to Tomi Kilgore at tomi.kilgore@dowjones.com.

Recommend :
0
React to this article
Latest news
Date Title
<1m agoDJEUROPE MARKETS : European Stocks Ease; Ericsson Slides After Results
1m ago CEGID GROUP : Disclosure of total number of voting rights and number of shares in the capital at 03/31/14
2m ago OXYSURE SYSTEMS : ® Systems, Inc. To Present At Taglich Brothers 11th Annual Small Cap Equity Conference
4m ago HAMON : Trading update q1 2014
4m ago INS NATIONAL INSTITUTE OF STATISTICS : Employment and unemployment in 2013 - underemployment and potential additional labour force
4m ago FISKARS ABP : streamlines its boat business
4m ago CLP : response on standby duties arrangement
4m ago RESEARCH AND MARKETS : India CNG Passenger Car Market 2014-2018
5m ago TOUCHPOINT METRICS : Western Independent Bankers Endorses Touchpoint Metrics and Touchpoint Mapping On-Demand, a Cloud-Based Customer Experience Management Software
5m ago NORDIC SEMICONDUCTOR ASA : New order for components to Mobile/wearable device segment of MUSD 1.3 (MNOK 7.8)
Latest news
Advertisement
Hot News 
IOFINA : Reduces Production Expectations On Fracking Plans
HAMON : Trading update q1 2014
CRESTON : Trading Statement and Directorate Change
DRAX : sues UK government over U-turn on biomass conversion support
AMINEX : Final Results and Annual Report
Most Read News
1h ago ASTRAZENECA : FTSE propped up by ABF and AstraZeneca
1d ago GENERAL MOTORS : GM seeks U.S. court protection against ignition lawsuits
1d ago MCDONALD : Yum Brands' China restaurant sales improve, shares rise
1d ago ETHAN ALLEN INTERIORS : Reports results for quarter ended march 31, 2014
1d ago CN, CP Rail profits could leave sour taste for farmers
Most recommended articles
11m ago Steady PMIs, sluggish China puts brakes on European shares
1h ago ASTRAZENECA : FTSE propped up by ABF and AstraZeneca
1d ago Barclays joins retreat from commodities as new rules bite
6d ago BLACKSTONE : earnings rise 30 percent, boosted by private equity gains
14m ago BoE minutes show 'range of views' on economic slack, inflation outlook
Dynamic quotes  
ON
| OFF