Stock Futures On The Retreat

Stock Futures On The Retreat
News
Like Us On Facebook
Like Us On Facebook

U.S. stock futures were drifting lower Friday with the markets uninspired by the weakness in European equities, which saw declines amid the preoccupation with Spain’s soaring borrowing costs.

Futures were falling even as technology shares held momentum in premarket trading following a handful of bottom-line beats.

Futures for the Dow Jones Industrial Average were shedding 64 points, or 70.36 points below fair value, at 12,816. Futures for the S&P 500 were behind by 8.8 points or 8.61 points below fair value, at 1363, and futures for the Nasdaq 100 were dipping 8.25 points, or 5.71 points below fair value, at 2644.

The selloff in European markets was accelerating after the government of the Spanish region of Valencia requested its own bailout following the approval by eurozone finance ministers of the bailout terms for Spain’s banks, which involves a package valued at up to €100 billion ($122 billion).

The approval of the deal didn’t calm investors’ nerves over the fate of the eurozone, with Spanish bond yields again hitting levels considered unsustainable and the 10-year remaining above 7%. Demand at a Spanish bond auction Thursday was lackluster.

The FTSE in London was slipping 0.82% and the DAX in Germany was dipping by 1.1%

“The markets still appear to be in their upward trading bands; however at the moment we’re sitting right on levels of key resistance for both the Dow and Nasdaq,” said Robert Pavlik, chief market strategist at Banyan Partners. “Last night the S&P 500 closed just above its key resistance level which was a slight positive. However it looks as though the line will be breached to the downside at the open this morning. Despite the fact that the markets appear as though they’ll open lower today, the upward sloping trend lines remain in tact.”

The major U.S. equity averages finished with mild gains Thursday up as an IBM (IBM)-led rally in technology offset a weak batch of economic data.

IBM was the standout performer on the blue-chip with a gain of nearly 4% to $195.34 after Big Blue eased past Wall Street’s expectations for its latest quarter and lifted its earnings outlook.

After the markets closed Thursday, Google (GOOG), the Internet search giant, reported second-quarter non-GAAP earnings of $3.35 billion, or $10.12 a share, on revenue excluding traffic acquisition costs of $8.36 billion. Analysts were looking for a profit of $10.04 a share on revenue of $8.41 billion. Shares were rising more than 2.5% in premarket trading.

Microsoft (MSFT) posted Thursday a non-GAAP quarterly profit of $6.93 billion, or 73 cents a share, for its fiscal fourth quarter on revenue of $18.06 billion. Analysts were looking for earnings of 62 cents a share on revenue of $18.13 billion.

Microsoft saw strong growth in its server and tools business in the quarter.

Shares were up 1.81%.

SanDisk (SNDK), the flash memory specialist, on Thursday reported non-GAAP earnings of $51 million, or 21 cents a share, for the second quarter on revenue totaling $1.03 billion.

The performance topped the average estimate of analysts for a profit of 18 cents a share on revenue of $1.02 billion.

Shares were surging more than 12.5%.

General Electric (GE) on Friday reported second-quarter operating earnings of $4 billion, or 38 cents a share, beating the consensus estimate of a 37-cent profit.

GE’s second-quarter revenue totaled $36.5 billion, missing the consensus estimate of $36.8 billion.

Shares were down 0.3% in premarket trading.

September crude oil futures were declining by $1.30 at $91.67 a barrel. August gold futures were unchanged at $1,580.40 an ounce.

The benchmark 10-year Treasury was rising 7/32, pushing the yield down to 1.486%, while the greenback was inching higher by 0.3%, according to the dollar index.

There are no scheduled U.S. economic releases Friday.

The Street

Share Tweet
React
Like Us On Facebook
Like Us On Facebook

Julian Sonny

From the sandy beaches of Hawaii, to the streets of New York: Julian has seen it all. His lifetime of travels has given him a broad scope of knowledge and an eclectic taste unlike any other in the tri-state area. Julian has often been compared to cultural icon, The Rock, because of his unequivocal work ethic and warrior-like stature.

More In News

Also On Elite

World

Smoking Tea Is Now A Thing, And Apparently It’s Relaxing And Good For You

Smoking weed to relax used to be relatively taboo, at least in terms of how the general population viewed the practice. With legalization laws passing in more and more states, lighting up isn’t looked down upon so much anymore. After all, marijuana is a plant and for some, it really does help with psychological problems […]

Ladies

7 ‘Negative’ Things You Should Never Stop Doing In Any Relationship

There’s a sad taboo that surrounds relationships: You think that all of the things you did pre-relationship need to die in order for the newness of your relationship to survive. You feel like all of the things you coveted about your single days – the sweet idleness that comes from moving from activity to activity, […]

World

Genius Chinese Man Decides To Lace Beer He Makes With Viagra To Get Rich Quick

The owner of a Chinese liquor factory has been arrested for lacing his products with Viagra, a marketing tactic he thought would make him one of the richest men in Hubei province. But some customers were more disturbed than grateful for the unexpected reaction to the drinks labeled as “nutritional healthy liquor” and contacted police. […]

Sports

F*ck The Haters!: 5 Reasons Why Johnny Manziel Is The Ultimate Millennial

November 10, 2012: Manziel takes the snap and steps up in the pocket. The ball hits offensive lineman and Johnny bobbles it. In the next three seconds, the undersized quarterback from middle-Texas becomes larger than life. He catches the ball mid-air, reverse spins out to left and throws a strike across his body to the back […]

World

From Bees To Bears, These Animals Have Been Trained For War In The Craziest Ways

The use of animals in warfare dates all the way back to ancient times. Throughout history, a shocking variety of animals has been utilized on the battlefield. From carrier pigeons to war elephants, and trained dolphins to attack dogs, animals have been used in extremely innovative ways during human conflicts. In many ways, one might […]