Futures Add Losses on GDP, Durable Goods Orders Miss
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%
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
(+) 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