Stock Futures Waver on U.S. Data, European Headlines

NEW YORK (TheStreet) -- Stock futures were wavering as investors digested negative European headlines and good U.S. economic data.

Futures for the Dow Jones Industrial Average were down 2 points, or 7.1 points above fair value, at 12,761. Futures for the S&P 500 were down 1.7 points, or 0.2 points below fair value, at 1340. Futures for the Nasdaq were up 0.7 points, or 2.7 points above fair value, at 2558.

Stocks closed lower Wednesday as reports that Greece's creditors were delaying the country's bailout eclipsed news that China may provide financial support to the eurozone.

As a March 20 deadline for repaying its debt quickly approaches, Greece must convince its German-led European partners that it will carry out conditions necessary for receiving its second bailout package of €130 billion. The country urgently needs this and a €100-billion write-down on privately held sovereign debt to prevent a massive default that could rock the global financial markets.

European partners continue to express skepticism about Greece's ability to fulfill deal requirements as it had backpedaled on promises in the past. While Athens hopes that it can eradicate doubts by the next meeting of eurozone finance ministers on Monday, there have been suggestions of finding ways to hold off on the complete delivery of the bailout until after Greece's early elections in April, while at the same time avoiding a chaotic default.

Greek finance minister Evangelos Venizelos meanwhile indicated that a €325-million gap in Greece's budget this year can be plugged.

The euro had fallen to a three-week low against the dollar as talks dragged on.

As the eurozone continues to fight its debt crisis, Moody's warns that it may cut the credit ratings of 17 global and 114 European financial institutions. The credit ratings of Morgan Stanley(MS), UBS(UBS) and Credit Suisse(CS) could be cut three notches by Moody's because of the risks associated with the eurozone debt crisis.

Germany's DAX was siding 1% while London's FTSE was falling 0.69%. Japan's Nikkei Average settled down 0.24% and Hong Kong's Hang Seng closed lower by 0.41%.

U.S. economic data turned out better-than-expected before the market open. The number of Americans seeking first-time unemployment benefits fell 13,000 to 348,000 in the week ended Feb. 11 from a revised 361,000 the previous week, according to a Labor Department report. Economists expected claims to rise to 365,000 from an originally reported 358,000.

Housing starts rose 1.5% to a seasonally adjusted 699,000 in January from a revised 689,000 in December, according to a Census Bureau report. Economists had expected starts to climb 2% to 670,000. Building permits rose 0.7% to 676,000 for the month. Single-family building permits rose 0.9% to 445,000 from a revised 441,000 in December.

The January producer price index rose 0.1%, after falling 0.1% in December. Core producer prices, excluding food and energy, rose 0.4% in January, the largest increase since July, following a rise of 0.3% in December.

The Philadelphia Fed regional manufacturing activity survey for February will be released at 10 a.m.

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In corporate news, General Motors(GM) missed fourth-quarter earnings estimates by a penny as it lost money in both Europe and South America. During the quarter, including items, the automaker earned $500 million, or 28 cents a share, including a net loss from special items of 11 cents. Excluding items, the company earned 40 cents a share. Analysts surveyed by Thomson Reuters had estimated 41 cents. Revenue rose 3% to $38 billion, in line with estimates. In North America, the automaker reported earnings before interest and taxes of $1.5 billion, up from $800 million in the same period a year earlier. In Asia, the company reported a gain of $400 million. But GM Europe lost $600 million and GM South America reported a loss of $200 million.

Still, the company booked the highest profits in the company's history for the full year. The auto giant made $7.6 billion in 2011, representing a 62% over 2010.

Looking forward, GM said that 2012 will bring "continued pricing improvement with cost inflation well contained, while product mix and pension expense are expected to be unfavorable." Revenue is expected to grow.

Shares were sliding 1.7% to $24.50 in premarket trading Thursday.

J.M. Smucker(SJM) posted adjusted third-quarter profit of $1.22 a share, down from $1.27 a year earlier. Revenue rose 12% to $1.47 billion. Analysts were expecting profit of $1.41 a share on revenue of $1.54 billion.

NetApp(NTAP), the data storage software company, posted in-line results for its fiscal third quarter and provided a fourth-quarter outlook that sits within analysts' ranges. NetApp reported non-GAAP profit of $216 million, or 58 cents a share, for quarter ended in January on revenue of $1.57 billion, matching analysts' estimates. For its fiscal fourth quarter ending in April, NetApp said it expects non-GAAP earnings of 60 cents to 65 cents a share on revenue ranging from $1.65 billion to $1.73 billion. Analysts forecast profit of 63 cents a share on revenue of $1.68 billion.

Nvidia(NVDA), the graphics chipmaker, forecast revenue of $900 million to $930 million for its fiscal first quarter ending in April. Analysts were expecting sales of $944.6 million.

March oil futures were sliding 48 cents to $101.32 a barrel. In other commodities, April gold futures were falling $8.20 to $1,719.90 an ounce.

The dollar index was up 0.3%. The benchmark 10-year Treasury was up 3/32, diluting the yield to 1.919%.

-- Written by Andrea Tse in New York.

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