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U.S. futures decline after Tuesday rally; Dow Jones down 0.49%

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Investing.com - " U.S. stock futures pointed to a lower open on Wednesday, as investors locked in profits after the release of downbeat U.S. employment data boosted U.S. equities on Tuesday.

Ahead of the open, the Dow Jones Industrial Average futures pointed to a 0.49% decline, S&P 500 futures signaled a 0.59% drop, while the Nasdaq 100 futures indicated a 0.63% slump.

The Department of Labor said the U.S. economy added 148,000 jobs in September, well below expectations for an increase of 180,000.

The U.S. unemployment rate ticked down to a four-and-a-half year low of 7.2% from 7.3% in August, but this was partially due to more people dropping out of the labor force.

The jobs report was released 18 days behind schedule due to disruption caused by the U.S. government shutdown.

In the tech sector, Apple fell 0.17% in pre-market trade a day after unveiling new versions of its full-sized iPad, called iPad Air, and iPad Mini in time for the holiday season.

The company also said a new version of its computer operating system, OS X Mavericks, would be available for existing customers to download free immediately.

Separately, rivals Nokia and Microsoft each unveiled tablet devices, ahead of Apple's event on Tuesday. Nokia presented its first-ever tablet, the Lumia 2520 in Abu Dhabi, while Microsoft started selling its new Surface 2 tablet in the U.S. starting midnight.

In earnings news, Broadcom forecast late Tuesday lower fourth-quarter revenue than estimated and said it will be cutting as many as 1,150 jobs, due to slower demand for chips that connect mobile phones to the Internet.

The news sent the company's shares down 8.11% after hours.

Juniper Networks also forecast revenue for the current quarter that may miss analyst estimates and said it is cutting 3% of its workforce, sending shares tumbling 1.77% in late trading.

Elsewhere, Twitter Inc. announced that it obtained a USD1 billion credit facility this month, tracking other social media companies in accessing the debt market tied to an initial public offering.

Other stocks likely to be in focus included Boeing, Caterpillar, GlaxoSmithKline and AT&T, scheduled to report quarterly earnings later in the day.

Across the Atlantic, European stock markets were lower. The EURO STOXX 50 dropped 0.85%, France's CAC 40 declined 0.82%, Germany's DAX slid 0.44%, while Britain's FTSE 100 retreated 0.48%.

During the Asian trading session, Hong Kong's Hang Seng Index tumbled 1.36%, while Japan's Nikkei 225 Index plummeted 1.95%.

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


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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