US STOCKS-Futures cut losses after GDP data

(For a live blog on the U.S. stock market, click LIVE/ ortype LIVE/ in a news window.)

* U.S. fourth-quarter GDP increases at 2.6 pct rate

* Trump walks away from deal in U.S.-North Korea summit

* Celgene falls as top BMY shareholder against deal

* Futures off: Dow 0.10 pct, S&P 0.20 pct, Nasdaq 0.33 pct (Adds comments, details, updates prices)

By Shreyashi Sanyal

Feb 28 (Reuters) - U.S. stocks index futures pared somelosses on Thursday after data showed U.S. economic growth slowedless than expected in the fourth quarter amid solid consumer andbusiness spending.

The Commerce Department's report showed gross domesticproduct (GDP) rose at a 2.6 percent annualized rate in thefourth quarter, while economists polled by Reuters had forecast a 2.3 percent growth rate. urn:newsml:reuters.com:*:nUSNSDEFQK

"GDP number was solid as a rock, there are no signs ofslowing down," said Naeem Aslam, chief market analyst at ThinkMarkets UK Ltd in London. "Most of the market participants wereexpecting a weak number and this is a surprise, a goodsurprise."

The sentiment was weaker earlier in the day after U.S.President Donald Trump said he had walked away from a nucleardeal at his summit with Kim Jong Un in Vietnam because ofunacceptable demands from the North Korean leader to liftU.S.-led sanctions. urn:newsml:reuters.com:*:nL5N20M8N0

"Collapse in negotiations with North Korea seems to beweighing on sentiment to some extent," said Scott Brown, chiefeconomist at Raymond James in St. Petersburg, Florida.

"There is very little substance that comes out of thesethings (the summit) but the market perceives that peace on thepeninsula would be a good thing."

At 8:50 a.m. ET, Dow e-minis 1YMc1 were down 25 points, or0.1 percent. S&P 500 e-minis ESc1 were down 5.5 points, or 0.2percent and Nasdaq 100 e-minis NQc1 were down 23.5 points, or0.33 percent.

The benchmark S&P 500 index .SPX closed slightly lower onWednesday after testimonies to U.S. Congress from trade andcentral bank officials as well as President Donald Trump'sformer lawyer brought few major surprises.

Still, optimism on trade and Fed policy had boosted equitiesfrom December lows in recent weeks, with the S&P 500 indexroughly 5 percent below its record closing high hit in lateSeptember.

Among stocks, HP IncHPQ.N tumbled 14.5 percent inpremarket trading after its quarterly revenue fell short ofanalysts' estimates on weaker-than-expected sales in both itspersonal computer and printing businesses. urn:newsml:reuters.com:*:nL3N20N16E

Bristol-Myers Squibb CoBMY.N rose 2.6 percent after topshareholder Wellington Management came out against thedrugmaker's $74 billion deal to buy biotech Celgene CorpCELG.O . Celgene shares fell 8 percent. urn:newsml:reuters.com:*:nL3N20M6GN

Monster Beverage CorpMNST.O jumped 9.1 percent after thebeverage maker beat Wall Street estimates for quarterly revenueand profit. (Reporting by Shreyashi Sanyal and Medha Singh in Bengaluru;Editing by Anil D'Silva) ((Shreyashi.Sanyal@thomsonreuters.com; +1 646 223 8780 ;Reuters Messaging:Shreyashi.Sanyal.thomsonreuters.com@reuters.net))

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

In This Story


Other Topics

World Markets US Markets Stocks


Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV.

Learn More