Member access

4-Traders Homepage  >  News

News

Latest NewsCompaniesMarketsEconomy & ForexCommoditiesHot NewsMost Read NewsRecomm.Business LeadersVideosCalendar 

US Stock Futures Slump On Growth Fears

06/04/2012 | 06:39am US/Eastern
Recommend:
0

By William L. Watts

FRANKFURT (MarketWatch)--U.S. stock index futures fell Monday, with another round of lackluster Chinese survey data adding to worries over global growth prospects, aggravated by last week's lackluster May U.S. nonfarm payrolls data and continued worries over the euro-zone debt crisis.

Futures on the Dow Jones Industrial Average fell 50 points to 12,053. S&P 500 Index futures declined 2.2 points to 1,271.70, while Nasdaq 100 futures lost 3 points to 2,452.

China's nonmanufacturing Purchasing Manager's Index for May fell to 55.2 on a 100-point scale in April, according to an official survey released Sunday, easing from 56.1 in April and undercutting hopes the service sector could take up some slack from slowing manufacturing activity.

U.S. stocks fell sharply Friday after May non-farm payrolls showed a much weaker-than-expected May rise of 69,000 and the unemployment rate ticked up to 8.2%.

Strategists said rising worries about global growth and continuing worries over the fate of Spain's banking sector and the potential impact of a Greek exit from the euro zone combined to keep risk appetite under wraps.

"There was also an expectation of some statement from E.U. and/or G-7 leaders over the weekend to offer reassurance to markets. As it was, there was nothing of substance, with the result that Asian equities were down over 2% today, with the fall in Chinese stocks the biggest for two months," wrote strategists at FxPro.

Asian equities played catch-up on Monday morning, sending Japanese stocks to their lowest level in more than two decades while Hong Kong shares erased year-to-date gains.

European equities traded mostly lower, with the Stoxx Europe 600 Index losing 0.3%. London markets are Monday and Tuesday for public holidays.

Central bankers will be in the spotlight this week as weak data stirs speculation of further stimulus measures. Federal Reserve Chairman Ben Bernanke testifies Thursday before the Joint Economic Committee on the economic outlook and monetary policy.

On Wednesday, the European Central Bank meets in Frankfurt, while the Bank of England concludes its monthly policy meeting on Thursday.

"In the U.S., last Friday's payrolls report was very weak [and] effectively conspired to magnify expectations of further Fed easing against the backdrop of a sharp decline in US equities," said Geoffrey Yu, currency strategist at UBS.

The U.S. economic calendar is light this week. April factory orders data is set for release at 10 a.m. EDT.

On the corporate front, shares of Groupon Inc. (GRPN) may be in the spotlight after dropping 9% to a record low on Friday as a restriction on insider selling expired.

U.S. stocks tumbled more than 2% on Friday, leaving the Dow in negative territory for the year and pulling the S&P 500 into correction territory.

The Dow fell 274.88 points Friday to finish at 12,118.57. The S&P 500 dropped 32.29 points to 1,278.04, leaving it 10% off its intraday, 52-week high and 9.9% off its 52-week closing high, which were both set on April 2. The Nasdaq Composite Index lost 79.86 points to 2,747.48.

Nymex crude-oil futures fell $1.51 to $81.72 a barrel in electronic trade. Gold futures dropped $2.90 an ounce to $1,619.20.

The ICE dollar index traded at 82.880, little changed from 82.878 in North American trade late Friday.

The euro changed hands at $1.2427, up slightly from $1.2422. The dollar fetched Y78.04, down from Y78.68 on Friday.

-By William L. Watts; 415-439-6400; AskNewswires@dowjones.com

Recommend :
0
React to this article
Latest news
Date Title
<1m ago IMPELLAM : Finance Director Andrew Burchall To Depart
<1m ago Fitch Assigns Ratings to LCM X Limited Partnership Refinancing Notes
1m ago PICANOL : Press release: Annual General Meeting Picanol NV 2013
1m ago LINEDATA SERVICES : honored by prestigious HFMWeek European award for ‘Best Portfolio Management System’
1m ago DATALOGIC : • 04/16/2014 Preliminary sales revenues at 108.2 million Euro in the first quarter of 2014, +6.1% compared to 102.0 million Euro in the first quarter of 2013
1m ago ATTICA : Sap quality awards 2013
1m ago ATTICA : Superfast ferries is the preferred carrier of the pole vault world champion k. filippidis
1m ago UNIFIRST : Prestige Packaging Helps Keep Everyday Healthcare Costs in Check
1m ago SUBSCRIBERWISE : Two Competing Models with Two Perfect Scores
1m ago WARNER BROS. : Names Dee Dee Myers as Its New Global Head of Corporate Communications
Latest news
Advertisement
Hot News 
BELGRAVIUM TECHNOLOGIES : Signs IT Contract With First Great Western
LDK SOLAR : Requests Review of NYSE Regulation's Decision to Suspend Trading and Commence Delisting Procedures
CARDICA : Prices Public Offering of Common Stock and Preferred Stock
APRICUS BIOSCIENCES' : Partner in the United Kingdom Accepts First Shipment of Vitaros(R)
SNOOZEBOX : Shares Tumble As Losses Widen; Plans GBP11 Million Fundraising
Most Read News
1h ago SPORTS DIRECT : FTSE advances on Chinese data, Sports Direct sprints ahead
1h ago Wall Street gains after Chinese data, Yahoo up on Alibaba
1d ago PAN AFRICAN RESOURCES : Karume Day and Rwanda Genocide Day
7h ago NOKIA : 67 Percent of Mobile Phones Sold in Kenya Are Smartphones
1d ago INTEL : quarterly net beats Street, CEO talks up tablets
Most recommended articles
8h ago Global shares up on China relief, Ukraine strains remain
1h ago SPORTS DIRECT : FTSE advances on Chinese data, Sports Direct sprints ahead
6d agoDJCarrefour Sales Grow at Fastest Pace in Two Years
1m ago Analysis - After years of downsizing, refining still matters for majors
7m agoDJLONDON MARKETS : Tesco, Sports Direct Lift FTSE 100
Dynamic quotes  
ON
| OFF