Member access

4-Traders Homepage  >  News

News

Latest NewsCompaniesMarketsEconomy & ForexCommoditiesHot NewsMost Read NewsRecomm.Business LeadersVideosCalendar 

U.S. Stocks Tilt Lower Amid European Weakness; Wal-Mart Rises Premarket

02/21/2013 | 09:12am US/Eastern
Recommend:
0

--Stock futures tilt lower after euro zone economic weakness, steep Wednesday selloff

--Jobless claims higher than expected in latest week; CPI unchanged, or up 0.3% excluding food and energy

--Wal-Mart gains pre-market following better-than-expected earnings

 
   By Tomi Kilgore and Alexandra Scaggs 
 

NEW YORK--Stock futures tilted lower as weakness in the euro zone weighed on markets, but Wal-Mart Stores reported better-than-expected earnings.

Less than 60 minutes ahead of the open, Dow Jones Industrial Average futures slipped 11 points, or 0.1%, to 13878. 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 two points, or 0.1%, to 1505 and Nasdaq 100 futures lost seven points, or 0.3%, to 2730.

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

Initial claims for jobless benefits rose to 362,000 in the latest week, more than the 350,000 expected. The consumer price index for January was unchanged on the month, and increased by 0.3% excluding volatile food and energy costs.

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 1.9% in premarket trading after the blue-chip discount retailer reported 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 0.3%. 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 1.8%.

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%.

Gold futures slipped 0.4% to a seven-month low of $1,571.50 an ounce, putting them on an early track to suffer a sixth-straight loss. Crude-oil futures lost 1.5% to $93.75 a barrel. Yields on the benchmark 10-year U.S. Treasury note fell to 1.981% as prices rose.

In other corporate news, Tesla Motors shed 5.5% 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.

Chesapeake Energy tacked on 1.4% after it beat Wall Street's expectations for profit and revenue in its latest earnings report.

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 19% after the business process-management company reported much better-than-expected earnings and revenue and provided a 2013 outlook that was above current projections.

Hormel Foods reported fiscal first-quarter earnings and revenue that were in line 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 earnings that beat expectations but provided a current-quarter earnings outlook that was below forecasts.

Write to Tomi Kilgore at tomi.kilgore@dowjones.com and Alexandra Scaggs at alexandra.scaggs@dowjones.com

Recommend :
0
React to this article
Latest news
Date Title
6m ago Aireon Announces Global Emergency Response Tracking Service
7m ago BEIJING CAPITAL INTERNATINL ARPRT : Around China
7m ago ALIBABA : Quotable
7m ago TIANJIN TEDA : 30 years on, China reviews development zone policies
8m ago CHINESE PEOPLE : -Korean film fest to focus on youth
10m ago Global Tracking Service Will Provide Location of Aircraft in Emergency Situations
13m ago CORUS ENTERTAINMENT : Jory Zechner from Nipigon, ON wins The Next Star Season 7
15m agoDJChina Finance Minister Says to Keep Policy Steady
16m ago TIANJIN TEDA : Goalkeeper Thinks He Is Playing FIFA15
24m ago DRESSER RAND : Siemens to acquire Dresser-Rand for $7.6 billion
Latest news
Advertisement
Hot News 
BANCO ESPIRITO SANTO : Swiss begin bankruptcy proceedings against Espirito Santo private bank
DIXONS CARPHONE : Phones 4U says Vodafone will take 140 of its stores
ALIBABA : CORRECTING and REPLACING Alibaba Group Announces Pricing of Initial Public Offering
EREDENE CAPITAL : Sells Aboyne To Brick Eagle For GBP3 Million
ITT EDUCATIONAL SERVICES : Entry into a Material Definitive Agreement, Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing, Change in Directors or Principal Officers, Regulation FD Disclosure, Financial Statements and Exhibits (form 8-K)
Most Read News
4h ago BEST BUY : The Best Backpacking Sleeping Bag Awards Announced By OutdoorGearLab
3h ago EXCLUSIVE : Siemens near deal to buy Dresser-Rand - sources
4h ago FERRO : Enters into Agreement to Acquire Italian Tile Coatings Manufacturer Vetriceramici
4h ago BOEING : SpaceX is not only taking a 3D printer to space, but mice too
4h ago SOURCE PHOTONICS : Demonstrates 100G-LR4 Interoperability Between QSFP28 and CFP4 Modules at ECOC 2014
Most recommended articles
15m agoDJChina Finance Minister Says to Keep Policy Steady
25m agoDJKurds Gain on Islamic State in Iraq
28m ago Siemens in agreed $7.6 billion deal to buy Dresser-Rand
32m ago Alibaba issues additional shares to raise IPO total to $25 billion
32m ago SIEMENS : to sell stake in household appliances JV for 3 billion euros
Dynamic quotes  
ON
| OFF