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 agoDJIran Sees Oil Prices Falling to $90 a Barrel by Late March
<1m ago HERSHEY : J.P. Bilbrey Honored as CR Magazine Responsible CEO of the Year Award Winner
1m ago ABERDEEN PRIVATE EQUITY FUND : DIRECTOR DEALING: Aberdeen Private Equity Non-Executive Buys Shares
1m ago WholeHealth Products announces the release of the FDA Cleared "HIV 1&2" Rapid Diagnostic Test for Professional and Retail
1m ago MITON WORLDWIDE GROWTH INVESTMENT TR : ST PLC - Holding(s) in Company
2m ago DRAKE GOLD RES : urces, Inc: Universal Apparel Company, a Drake Gold Resources Inc. (DKGR:OTC) Subsidiary, has received purchase orders in Excess of $300,000.
3m agoDJCanada Government Expects CN Rail to Live Up to Grain-Shipment Targets
4m ago BUFFALO COAL : Miner Dies At JSE-listed Buffalo Coal Mine
4m ago UNILEVER : Invests $190m To Scale Up Production Capacity In Kenya
4m ago OANDO : Posts 103% Rise in Half Year Profit
Latest news
Advertisement
Hot News 
DIXONS CARPHONE : UK's EE to buy 58 stores from Phones 4u for 2.5 million pounds
REGENERSIS : *panmure cuts regenersis price target to 403 (502) pence - 'buy'
ASCENA RETAIL : Management's Discussion and Analysis of Financial Condition and Results of Operations ("MD&A"). (form 10-K)
NORTHBRIDGE INDUSTRIAL SERVICES : Profit Up; Raises Funds In Placing As It Buys Rest Of Tasman
KTG ENERGIE : places capital increase successfully (DGAP News)
Most Read News
1d ago TEKMIRA PHARMACEUTICALS : U.S., Canada allow emergency use of Tekmira's Ebola treatment
1d ago BNP PARIBAS : Chairman Baudouin Prot to leave: Le Figaro
1d ago AIRBUS : Boeing spar over jet production strategy
1d ago DIXONS CARPHONE : UK's EE to buy 58 stores from Phones 4u for 2.5 million pounds
1d ago MCGRAW HILL FINANCIAL : to Sell McGraw Hill Construction to Symphony Technology Group
Most recommended articles
5d ago Main Italian lenders took 23 billion euros of cheap ECB cheap
3m agoDJCanada Government Expects CN Rail to Live Up to Grain-Shipment Targets
5m agoDJLONDON MARKETS : Shire, AstraZeneca Fall In London After U.S. Tax Move
16m ago DEUTSCHE LUFTHANSA : Lufthansa says premium economy bookings exceeding expectations
18m ago Stocks fall on weak data, Syria air strikes
Dynamic quotes  
ON
| OFF