Futures Add Losses on GDP, Durable Goods Orders Miss


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Stock futures have deteriorated further from their earlier levels in the wake of a steep, downward revision to Q1 GDP and an unexpected drop in May durable goods. Pre-market losses are also being amplified by Tuesday's late reversal and mounting tensions in the Middle East after Iraqi insurgents attacked the country's largest air-base and reports of Syrian warplanes attacking Iraqi civilians in Anbar province.

As a result of poor weather and its impact on consumer spending and production, Q1 GDP was revised to its worst post-recession level, from -1.0% initially to -2.9%, well below estimates for a 1.8% decline. The price index remained unchanged at +1.3%.

In addition, durable goods orders plummeted 1.0% in May, missing estimates for a 0.4% gain. However, much of the decline was attributed to weak military orders since durable goods ex-defense was a more robust +0.6%. Excluding transportation orders, durable goods were down 0.1%.

European equities are losing altitude as well with overseas markets weighed down by not only sluggish U.S. growth, but geo-political tensions which more than offset upbeat EU-zone data on Italian retail sales and an improvement in German consumer confidence.

-Dow Jones Industrial down 0.21%

-S&P 500 futures down 0.18%

-Nasdaq 100 futures down 0.18%


Nikkei down 0.71%

Hang Seng down 0.06%

Shanghai Composite down 0.41%

FTSE-100 down 0.53%

DAX-30 down 0.38%


(-) Large cap tech: lower

(-) Chip stocks: lower

(+/-) Software stocks: mixed

(-) Hardware stocks: lower

(-) Internet stocks: lower

(-) Drug stocks: lower

(-) Financial stocks: lower

(-) Retail stocks: lower

(-) Industrial stocks: lower

(+/-) Airlines: mixed

(+/-) Autos mixed


(+) AERI (+36.00%) Successful results of its Phase 2b trial for once-daily, quadruple-action Roclatan

(+) NSPH (+14.08%) Received FDA clearance for the bacterial portion of its Verigene Enteric Pathogens Nucleic Acid Test

(+) MDCI (+93.64%) To be bought by Owens & Minor for $13.80/share in cash


(-) TISI (-7.45%) Missed on both Q4 earnings and revenue

(-) CVRR (-7.26%) Selling 6 million common units

(-) GIS (-3.72%) Reported below consensus Q4 earnings and revenue

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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This article appears in: Investing , Commodities

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