Futures Turn Negative As Bullish Momentum Dissolves

Futures were reflecting the more defensive tone in the equity market as investors seemed anxious with challenging record highs amid the landscape of somewhat disappointing economic data, mixed corporate earnings and a still unresolved situation in Eastern Europe. And although the European Central Bank and Bank of England are both now expected to retain an accommodative monetary policy, European equities were lower as well with the UK FTSE underperforming its EU counterparts.

Adding to the weaker tone was a much greater-than-expected increase in producer prices which jumped 0.6% in April, the largest monthly gain in 2-½ years, beating estimates for a more modest 0.2% increase. Excluding the volatile food and fuel component, PPI rose 0.5%, also above estimates for a 0.2% advance.

In corporate news, Sears ( SHLD ) is considering strategic options for its 51% stake in Sears Canada (SCC.TO), Macy's ( M ) beat earnings estimates by $0.01, but missed revenue estimates, while John Deere ( DE ) reported a bottom-line beat on revenue that came in below street estimates.

-Dow Jones Industrial down 0.07%

-S&P 500 futures down 0.13%

-Nasdaq 100 futures down 0.29%


Nikkei down 0.14%

Hang Seng up 1.03%

Shanghai Composite down 0.14%

FTSE-100 down 0.14%

DAX-30 down 0.24%


(-) Large cap tech: lower

(-) Chip stocks: lower

(-) Software stocks: lower

(-) Hardware stocks: lower

(+/-) Internet stocks: mixed

(-) Drug stocks: lower

(+/-) Financial stocks: mixed

(+) Retail stocks: higher

(+/-) Industrial stocks: mixed

(+/-) Airlines: mixed

(+/-) Autos flat


(+) PTX (+41.36%) $250 million deal to buy U.S. rights to treximet from GlaxoSmithKline ( GSK )

(+) CLDX (+8.87%) Struck a clinical trial collaboration agreement with Bristol-Myers Squibb ( BMY )

(+) M (+2.06%) Beats earnings by $0.01 but misses on revenue, maintains guidance, increases dividend and share buyback


(-) HYGS, HYG.TO (-22.41%) Begun the sale of shares from its treasury and by selling shareholder Commscope.

(-) ENZY (-8.45%) Earnings missed estimates and warned of lower Q2 and FY 2014 sales

(-) FOSL (-6.69%) Below-consensus guidance overshadowed its earnings beat.

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 All rights reserved. Unauthorized reproduction is strictly prohibited.

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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