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%

SENTIMENT

Nikkei down 0.71%

Hang Seng down 0.06%

Shanghai Composite down 0.41%

FTSE-100 down 0.53%

DAX-30 down 0.38%

PRE-MARKET SECTOR WATCH

(-) 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

UPSIDE MOVERS:

(+) 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

DOWNSIDE MOVERS:

(-) 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 The NASDAQ OMX Group, Inc.

Copyright (C) 2014 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.


This article appears in: Investing , Commodities

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