Stock futures tilt lower
Investors retreat after a three-day rally and follow the European markets lower. Productivity and unit labor costs increase. Oil futures decline. Macy’s posts an EPS beat.
By Andrea Tse
Stock futures were leaning lower Wednesday after a three-day rally as the markets followed the footsteps of the European markets.
Futures for the Dow Jones Industrial Average ($INDU) were down by 60 points at 13,059. S&P 500 ($INX) futures were down by 5.3 points at 1,392. Futures for the Nasdaq ($COMPX) 100 were falling by 6 points to 2,704.
U.S. stocks finished with modest gains Tuesday after a Federal Reserve official called for an aggressive asset purchase program.
Investor sentiment also got a lift from chatter about a coordinated bond-buying action in Europe and easing concerns about the Chinese economy.
The Labor Department reported Wednesday preliminary productivity and unit labor costs data for the second quarter. Productivity rose at a 1.6% annual rate and unit labor costs increased at a 1.7% rate. Economists surveyed by Reuters had expected productivity to rise by 1.3% and unit labor costs to increase by 0.6%.
September crude oil futures were down 82 cents at $92.85 a barrel amid indications of softening U.S. demand.
December gold futures were down $3.10 at $1,609.70 an ounce.
The benchmark 10-year Treasury rose 3/32, diluting the yield to 1.621%. The greenback was up 0.21%, according to the dollar index.
The FTSE in London was down 0.55% and the DAX in Germany was down 0.71% as the Bank of England reduced its outlook on the United Kingdom’s economy, Dutch bank ING reported losses related to its exposure to Spain, Greece's rating outlook was slashed by Standard & Poor's and June German industrial production declined a bit more than expected.
The Hong Kong Hang Seng index finished flat and the Nikkei in Japan closed up 0.88% as investors awaited a batch of China data later this week.
The spate of China data this week includes inflation, industrial production, retail sales and fixed asset investment on Thursday and trade data on Friday.
In corporate news, Walt Disney (DIS), the media and entertainment conglomerate, posted better-than-expected earnings but came up short of analysts' estimates on the top line.
The company reported after Tuesday's closing bell earnings of $1.83 billion, or $1.01 a share, in its fiscal third quarter ended in July on revenue of $11.09 billion. Analysts were expecting a profit of 93 cents a share on revenue of $11.31 billion.
Earnings were driven, in part, from strong ticket sales to movies like The Avengers.
Priceline.com (PCLN), the online travel reservation company, provided investors with an underwhelming outlook after Tuesday's close of trading.
Priceline said it expects non-GAAP earnings of $11.10 to $12.10 for the third quarter ending in September, well below the current Wall Street consensus estimate for a profit of $12.76 a share. The company said its outlook "reflects an assumption that economic conditions in Europe will further deteriorate."
Macy's (M) posted an almost 16% gain in second-quarter net income and earnings per share of 67 cents on revenue of $6.12 billion. Analysts, on average, were expecting second-quarter earnings of 64 cents a share on sales of $6.12 billion.
Jiangling Motors, the Chinese light commercial vehicle maker that is 30%-owned by Ford (F), plans to buy Taiyuan Changan Heavy Truck Co.
China is the world's largest market for heavy trucks. It's Ford's first entry into the market.
Yesterday, was reading how California school systems were supposedly kicking the can down the road, actually down a long hi-way.....Nothing supposedly about it..
Extending bonds out to 40 years, no payments until 20 years....Who the hell is going to buy that or want something that toxic..? Some States, including Michigan, made it illegal for school systems to even offer such debt instruments a fews years ago...Considering them a ponzi scheme.
Now today, reading where a District in San Diego will sell a little over a hundred million in bonds, to do school repairs....And the pay back is going to be just over a Billion....Really ??
I do not see any of this ending well....
The California schools will probably be in tents within 20 years..
Andrea you get an A for effort on your new headline word......... Tilt........ as in pinball.
You're stuck of blame that doesn't help solve the problem. Look at where we are, not why we got here. If you look down and see that you're bleeding.. you get a bandage first, then if you're still interested you look for what caused it.
I think you and I finally did it.
We finally scared everyone else off.
Poor Kodak.....Is probably headed down to a lower level......
Opening bids for their Portfolio of patents in the photography and digital world is about 10% of what they hoped it might bring....
The buyers seem to have them right where they want....A sad day, for what was a great company.
They need more to survive, and it doesn't look good.
How is this different to what I have been asking for today that you have said would hurt and not help (even though you admit it was what fixed things back then)?
Bottom line. The money was spent incorrectly. And because of that, I refuse to give this group 4 more years to further these policies.
LOM..... How with a straight face (???) can you type (???) such nonsense?
Please share with the class your examples of where "history" has attempted Libertarian policies. America post WWI? Success! Iceland post 2008? Another success!!!
Would love to read what other examples you have incorrectly connected to what you clearly don't understand.
I can hear the phone calls now...
ASHMONT MONEYSWORTH III: Hello? Uber Wealth Properties? You know that mansion I made the down payment on in Cannes? Well, consider it withdrawn...I have decided to stay in Hoboken. Yes, I can create more jobs here now....Thank you."
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[BRIEFING.COM] The S&P 500 settled lower by 0.8% after early strength turned into afternoon weakness.
Today's headline event came in the form of Ben Bernanke's testimony before the Joint Economic Committee. During his remarks, Chairman Bernanke said premature tightening of monetary policy could stall the pace of recovery. This followed weeks of conflicting remarks from FOMC members, which sparked speculation regarding possible changes to the Fed's policy course.
However, ... More
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