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Stock Futures Remain Negative on Cautious Fed


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Stocks futures are building on Wednesday's losses after Fed Chair Janet Yellen cautioned investors over the detrimental impact on U.S. financial markets from a possible UK exit from the European Union, and lowered growth GDP forecasts for 2016 and 2017.

Her sentiments were echoed by the Bank of Japan, Bank of England and Swiss National Bank, all of which left their key rates unchanged this morning but remained vigilant for any signs of further economic deterioration.

Risk-adverse investors continue to flock to the safety of government securities, driving Dow futures 68 points below fair value and the yield on the 10-year Treasury note down another 3 basis points to 1.56%.

Thursday's economic data added to the downbeat tone in equities as initial jobless claims for the week ended June 11 increased a much greater-than-expected 13,000 to 277,000. The consumer price index for May increased a below-consensus 0.2% for both the nominal and the core. Also, the current account deficit widened to $124.7 billion in the first quarter from a revised deficit of $113.4 billion.

On the plus side, the Philadelphia Fed business outlook index improved to positive 4.7 from a negative 1.8 in May, beating estimates of positive 0.8.

Next is the National Association of Home Builders housing market index at 10ET, projected to improve to 59.0 from 58.0 in May.

-Dow Jones Industrial down 0.46%

-S&P 500 futures down 0.52%

-Nasdaq 100 futures down 0.52%

SENTIMENT

Nikkei down 3.05%

Hang Seng down 2.10%

Shanghai Composite down 0.48%

FTSE-100 down 0.89%

DAX-30 down 1.08%

PRE-MARKET SECTOR WATCH

(-) Large cap tech: Lower

(+/-) Chip stocks: Mixed

(-) Software stocks: Lower

(-) Hardware stocks: Lower

(-) Internet stocks: Lower

(-) Oil stocks: Lower

(-) Biotech stocks: Lower

(-) Drug stocks: Lower

(-) Financial stocks: Lower

(-) Retail stocks: Lower

(-) Industrial stocks: Lower

(-) Airlines: Lower

(-) Autos: Lower

UPSIDE MOVERS:

(+) QLGC (+10.93%) To be acquired by Cavium ( CAVM ) for $1.36 billion

(+) AUDC (+4.70%) Commenced self-tender offer for up to 3 million shares

(+) RLYP (+3.64%) Upbeat sales results for Veltassa

DOWNSIDE MOVERS:

(-) TNXP (-18.70%) Priced 5 million shares at $2 per share

(-) KFY (-9.99%) Posted upbeat fiscal Q4 results

(-) EVHC (-6.62%) Will merge with Amsurg Corp ( AMSG ) in all-stock transaction

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

Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.



This article appears in: Investing , Stocks
Referenced Symbols: AUDC


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