From MARKET TALK:
6:32 (Dow Jones) S&P 500 and Nasdaq Composite futures are
little changed while the Dow industrials is underperforming as
European markets are similarly bifurcated after Friday's worst day
for US stocks in 7 months. France and Spain are logging solid gains
while the main indexes in Germany and the UK are off nearly 1%. US
futures have been strengthening the past several hours, and the
euro is near session highs around $1.2430. That as oil futures
continuing their slump, with front-month Nymex falling below
$82/barrel. It's quiet on the US economic front today outside of US
industrial orders at 10am EDT. DJIA futures are down just 24 points
and the S&P 500 is flat. (kevin.kingsbury@dowjones.com)
Call us at (212) 416-2354 or email
kevin.kingsbury@dowjones.com
Reported earlier: US Stock Futures Slump On Growth Fears
By William L. Watts
FRANKFURT--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
HOT STOCKS TO WATCH
Among the companies with shares expected to actively trade in
Monday's session are Walgreen Co. (WAG) and Clearwire Corp.
(CLWR).
Walgreen and Express Scripts Holding Co. (ESRX) have agreed to
dismiss a lawsuit Express Scripts filed last year over Walgreen's
marketing tactics when the relationship between the drugstore chain
and pharmacy-benefit manager was breaking down. Walgreen shares
were up 1.2% to $30.30 after hours.
Crest Financial Ltd. reported a 5.9% stake in Clearwire, making
it one of the telecommunications company's largest shareholders,
and said it seeks to discuss the possibility of adding members to
the company's board. Shares were 2.2% to $1.18 after hours.
Watch List:
Arrow Electronics Inc. (ARW) said it approved adding $200
million to its share repurchase program, joining a growing list of
firms looking to boost shareholder value.
Bed Bath & Beyond Inc. (BBBY) said it bought Linen Holdings
LLC for about $105 million in cash, marking the second acquisition
deal for the home furnishings retailer in as many months.
Charming Shoppes Inc.'s (CHRS) fiscal first-quarter earnings
dropped 32% as the women's plus-size retailer recorded flat
same-store sales and weaker margins.
Cosi Inc. (COSI) said it received another delisting warning from
Nasdaq for failing to maintain a minimum stock price of $1.
Moody's Investors Service placed its ratings on Flowserve Corp.
(FLS) on review for a possible upgrade, a day after the
valve-and-pump maker unveiled a new capital structure program.
Geokinetics Inc. (GOK) has named David Crowley, most recently
the chief executive of Enventure Global Technology, as its new
president and chief operating officer.
O'Reilly Automotive Inc. (ORLY) said it boosted its
stock-buyback program by $500 million, raising the auto-parts
retailer's total authorization to $2 billion.
Edited By Nathalie Tadena, Dow Jones Newswires; 212-416-3287;
nathalie.tadena@dowjones.com