US Stock Futures Turn Negative After 4Q GDP

Dow Jones

By Tomi Kilgore and Chris Dieterich, OF DOW JONES NEWSWIRES

NEW YORK -(Dow Jones)- Stock futures recently turned lower after a weaker-
than-expected reading on U.S. economic growth for the fourth quarter,
jeopardizing the market’s chances for a fourth-straight weekly gain.

With less than an hour before the opening bell, Dow Jones Industrial Average
futures declined 41 points, or 0.3%, to 12643. The Dow closed down 22 points, or
0.2%, on Thursday, but had been up as much as 85 points at an intraday high of
12842, which was the highest seen since May 2.

Standard Poor’s 500-stock index futures fell 5 points, or 0.4%, to 1312 and
Nasdaq 100 futures edged lower by 3 points, or 0.1%, to 2451. Changes in stock
futures do not always accurately predict stock moves after the opening bell.

The nation’s gross domestic product–the value of all goods and services
produced–grew at an annual rate of 2.8% between October and December, up from
1.8% growth in the third quarter. The reading fell short of expectations for 3%
growth, through the reading showed that the U.S. economy grew at the fastest
pace since the second quarter of 2010.

Due up later Friday are data on consumer sentiment for January, due out at 9:
55 a.m. EST. Economists forecast a slight improvement.

In Europe, the Stoxx Europe 600 fell 0.3%, with investors wary as the cost of
insuring Portugal’s debt against default climbed to a fresh record Friday.
Elsewhere, there were signs of progress. European Union Commissioner Olli Rehn
said Greece was close to a deal with its private creditors on the restructure of
its debt, while Italian Treasurys sold the full amount of debt at its planned
bill sales Friday. The debt sale boosted confidence ahead of a longer-dated
auction Monday that will provide a more accurate gauge of demand for the
country’s bonds.

Asian bourses were mostly higher, with Hong Kong’s Hang Seng index rising 0.3%
. Japan’s Nikkei lost 0.1%. Gold futures were barely changed at $1,727 an ounce,
while crude oil futures ticked up 0.5% to $100.21 a barrel. The U.S. dollar lost
ground against the euro and the yen.

In corporate news, shares of Procter Gamble fell 0.7% in recent premarket
trading after the blue-chip consumer-products company reported fiscal second-
quarter earnings that exceeded forecasts, but lowered its full-year outlook
citing unfavorable currency translation.

Ford lost 4.7% after the auto maker’s fourth-quarter earnings missed estimates
as a result of slower sales in Europe and production losses caused by the
flooding in Thailand, although revenue came in above expectations.

Starbucks fell 1.7% after the coffee seller’s fiscal first-quarter earnings
and revenue exceeded expectations, but its second-quarter earnings outlook was
below current forecasts.

Juniper Networks slumped 8.8% after the company missed fourth-quarter earnings
and revenue estimates, and provided a downbeat outlook for the current quarter.

Riverbed Technology shed 16% after the maker of networking gear topped fourth-
quarter expectations, but provided a disappointing current-quarter outlook.

Seagate Technology advanced 3.3% after the hard disk drive maker raised its
quarterly dividend by 39 cents a share and increased its stock repurchase
program by $1 billion.

Solutia soared 41% after the specialty-chemicals company said it agreed to be
acquired by Eastman Chemical in a cash and stock deal valued at about $3.38
billion. Eastman Chemical climbed 6.6%.

-By Tomi Kilgore and Chris Dieterich, Dow Jones Newswires; 212-416-2611;

  (END) Dow Jones Newswires
  Copyright (c) 2012 Dow Jones  Company, Inc.

One thought on “US Stock Futures Turn Negative After 4Q GDP

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