Futures Lower As Rekindled Geo-Political Pressures Snaps Winning Streak

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Futures are defensive into the open after fresh U.S. and European Union sanctions against Russia rekindles geo-political jitters, and worries about a possible default of a large Chinese construction firm triggers a flight away from risky assets. Despite upbeat earnings from Morgan Stanley ( MS ), Phillip Morris ( PM ) and eBay ( EBAY ), equities are trading in the red with this morning's selling magnified by an unexpected drop in housing starts.

Last month, housing starts declined 9.3% to a seasonally-adjusted annual pace of 893,000, missing the consensus estimate for a 2.5% 1.026 million increase. Also, starts for May were revised downward to 985,000 from 1.001 million initially. Permits also missed estimates and at a pace of 963,000, fell slightly from May's revised 1.005 million annual pace.

Initial jobless claims, however, beat expectations with a decline of 3,000 to 302,000 versus forecasts for an increase to 310,000. Claims for the week prior were revised upward to 305,000 from 304,000 initially.


European markets are sharply lower in reaction to developments surrounding Russia along with the possible fall-out from a missed bond payment from China's Huatong Road & Bridge Group which overshadowed as-expected EU-zone inflation data.

.

-Dow Jones Industrial down 0.21%

-S&P 500 futures down 0.41%

-Nasdaq 100 futures down 0.37%

SENTIMENT

Nikkei down 0.06%

Hang Seng down 0.01%

Shanghai Composite down 0.57%

FTSE-100 down 0.72%

DAX-30 down 0.91%

PRE-MARKET SECTOR WATCH

(+/-) Large cap tech: mixed

(-) 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: lower

(-) Autos lower

UPSIDE MOVERS:

(+) MS (+1.75%) Beat Q2 earnings estimates

(+) MSFT (+3.04%) Plans to slash 18,000 jobs in reorganization after Nokia reorganization

(+) DRC (+15.18%) WSJ reported that German-based Siemens is mulling a bid to buy Dresser-Rand

DOWNSIDE MOVERS:

(-) SNDK (7.59%) Cautious guidance overshadowed better than expected results

(-) AN (-3.83%) Q2 earnings rise but miss estimates, sales in-line

(-) MAT (-7.25%) Reported below-consensus earnings

(-) URZ (-14.79%) Plans to sell 8 million units at $1.25 each



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

Referenced Stocks: MS , PM , EBAY

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