Stocks Futures Retreat As ECB Measures Disappoints

U.S. stock futures have turned negative in reaction to conservative measures adopted by the European Central Bank to stimulate the ailing EU-zone economy. Wall Street showed their disappointment with both the 10 basis point cut in the deposit rate -- versus expectations for a 25 basis point cut -- and just 6 month extension of quantitative easing by taking profits from earlier gains and driving the major benchmarks back into the red.

Stock futures were significantly higher earlier Thursday morning in anticipation that ECB President Mario Draghi would introduce assertive measures to bolster the stagnant EU economy. The meagre rate cut coupled with exclusion of any significant expansion of QE has driven European equities sharply lower, taking the dollar and Wall Street lower in sympathy.

The developments in Europe eclipsed a 9,000 increase in initial jobless claims to an as-expected 269,000.

Today's remaining data includes the final November PMI services index, October factory orders and the November ISM non-manufacturing index.

In related markets, gold is up $4, but industrial metals are all lower. Oil is trading back over $40 per barrel, and bond yields are higher with the 10-year note at 2.23%.

-Dow Jones Industrial down 0.35%

-S&P 500 futures down 0.23%

-Nasdaq 100 futures down 0.15%


Nikkei up 0.01%

Hang Seng down 0.28%

Shanghai Composite up 1.37%

FTSE-100 down 0.20%

DAX-30 down 0.60%


(+/-) Large cap tech: Higher

(+/-) Chip stocks: Higher

(+/-) Software stocks: Higher

(+/-) Hardware stocks: Higher

(+/-) Internet stocks: Higher

(+/-) Drug stocks: Higher

(+/-) Financial stocks: Higher

(+/-) Retail stocks: Flat

(+/-) Industrial stocks: Higher

(+/-) Airlines: Higher

(+/-) Autos: Higher


(+) FOMX (+12.87%) Reported positive top-line results from Phase II study of FDX104 in Acneiform Rash

(+) DYAX (+12.41%) Reported the early termination of Hart-Scott-Rodino waiting period

(+) EXPR (+9.26%) Reported better-than-expected Q3 results

(+) AVGO (+9.08%) Beat fiscal Q4 earnings estimates


(-) ABGB (-19.93%) Reversing Wednesday's 6% rally

(-) VRNT (-12.07%) Downgraded at Credit Suisse to neutral from outperform

(-) ZFGN (-8.92%) SunTrust Robinson downgraded to neutral from buy, lowered the price target to $7 from $25

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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