Stock Futures Dive on German Data
NEW YORK (TheStreet) -- U.S. stock futures were pointing to a weaker open Tuesday on data showing stagnant economic growth in Germany in the second quarter.
Futures for the Dow Jones Industrial Average were down by 69 points, or 115 points below fair value, at 11,334. Futures for the S&P 500 were lower by 12 points, or 16 points below fair value, at 1186, and Nasdaq futures were off by 20 points, or 26 points below fair value.
Stocks surged Monday as a wave of deals news and signs of resilience in Japan's economy offset weak regional manufacturing data.
The German economy only grew 0.1% in the second quarter, which was well below expectations for an increase of 0.5% and below the prior quarter's growth of 1.3%. The news, along with the meeting of French President Nicolas Sarkozy and German Chancellor Angela Merkel in Paris, will likely bring concerns about the European sovereign debt crisis back to the forefront.The FTSE in London was losing 1.3%, and the DAX in Frankfurt was sinking 2.7%. In Asia, Hong Kong's Hang Seng declined 0.2% while Japan's Nikkei added 0.2%. Shortly before Tuesday's opening bell, ratings agency Fitch affirmed its AAA credit rating for the U.S. with a stable outlook. In corporate news, Warren Buffet's Berkshire Hathaway (BRK.B) initiated a small stake in Dollar General (DG), sending shares of the discount retail chain up 2.3% to $32.92. Shares of Evergreen Solar (ESLR) were dropping 11.2% to 16 cents a share in early trading after the solar panel maker filed for Chapter 11 bankruptcy. In earnings news, Home improvement retailer Home Depot (HD) topped analysts' estimates by 3 cents with a profit of 86 cents a share and upped its fiscal-year earnings outlook. Second-quarter sales of $20.03 billion also exceeded expectations for revenue of $19.96 billion. Wal-Mart (WMT) posted its ninth drop in U.S. same-store sales with a dip of 0.9%, but reported better-than-expected earnings of $1.09 a share on sales of $108.6 billion. Wall Street had forecasted a profit of $1.08 a share on revenue of $108.28 billion. Shares were gaining 1.5% to $50.71 ahead of Tuesday's opening bell.
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