Stock Futures Down as Market Shrugs Off Durable Orders Rebound
NEW YORK (TheStreet) -- U.S. stock futures were lower Friday, signaling the S&P 500 may be poised for a third day of declines as investors shrugged off a rebound in durable-goods orders. Sentiment was subdued as the market ponders the possibility of a pullback in Federal Reserve stimulus and remained jittery about the state of China's economic strength.
Futures for the S&P 500 were falling 6 points, or 4.21 points below fair value, to 1,644. The index remains in positive territory for the week and the month.
"The Fed Chairman (Ben Bernanke) had made perfectly sensible comments, suggesting that liquidity would be withdrawn when the economy did not need it, but markets perhaps wanted an excuse to correct," noted Paul Donovan, the London-based global economist at UBS.
Futures for the Dow Jones Industrial Average were falling 28 points, or 10.5 points below fair value, to 15,261. Futures for the Nasdaq were behind by 11.5 points, or 9.45 points below fair value, to 2,980.75.Abercrombie & Fitch (ANF) was plunging 10.34% to $48.75 after the apparel retailer reported a quarterly loss that was 4 cents wider than expectations, as sales disappointed. The company posted a quarterly loss of 9 cents a share as same-store sales declined by 15%; guidance for the full year also was worse than expected. Chipmaker Marvell Technology (MRVL) was popping 5.39% to $11.92 after exceeding first-quarter revenue forecasts and beating earnings expectations by 5 cents at 19 cents a share, as its storage and networking chips generated robust demand. The company's current quarter outlook was also upbeat. Procter & Gamble (PG) is bringing back A.G. Lafley as CEO of the consumer products giant in an effort to boost slow sales growth. Lafley will replace CEO Bob McDonald, effective immediately. McDonald, who will retire June 30 after a transition period, has been CEO since 2009. Lafley, who served as CEO of the company from 2000 to 2009, also was named chairman and president. Shares were rising 3.34% to $81.33. Pandora Media (P), the online radio service, was surging 11.77% to $19.18 after posting on Thursday first-quarter revenue that topped expectations. The company's revenue outlook also topped Wall Street estimates as its mobile advertising sales accelerated and the company added more subscribers during the quarter. The Census Bureau reported that durable-goods orders rose by a greater-than-expected 3.3% in April, after a 5.9% decrease in March. New orders have been up two of the last three months. Excluding the transportation factor, durable-goods orders increased by a better-than-forecast 1.3% after a 1.7% decline. Economists, on average, were expecting orders to rise 1.5% and the number excluding the transportation factor to increase 0.5%. The Nikkei 225 in Japan finished up 0.89%, while the Hong Kong Hang Seng index settled down 0.25% to $83.59. The benchmark 10-year Treasury was rising 1/32, diluting the yield to 2.015%. The dollar was slipping 0.54% to $83.89 according to the U.S. dollar index. June oil futures were off 32 cents to $93.93 a barrel, while June gold futures were down $5.30 to $1,386.50 an ounce. Follow @atwtse Written by Andrea Tse in New York >To contact the writer of this article, click here: Andrea Tse.
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