Market Hustle: Stock Futures Lower as OECD Cuts Global Growth Outlook
NEW YORK (TheStreet) -- Stock futures were lower Tuesday as the Organization for Economic Cooperation and Development cut its global growth forecasts and a health care deal was announced that will make Bayer the largest over-the-counter drug seller in North America.
Futures for the S&P 500 were off 5 over fair value to 1,873.75 while futures for the Dow Jones Industrial Average were slipping 35.55 over fair value to 16,426.0. Nasdaq futures were down 9.04 over fair value to 3,588.0.
- In its Economic Outlook report, the OECD lowered its forecast for global economic growth from its November outlook, from 3.6% to 3.4% for 2014. It called on the European Central Bank to cut its interest rate, and take potentially additional measures to address low eurozone inflation. The organization said U.S. economic growth could expand at a 3.9% annual pace this quarter.
- The U.S. trade deficit fell 3.6% to $40.4 billion in March, broadly in line with expectations.
- Companies expected to see price action on Tuesday include Walt Disney (DIS), Trip Advisor (TRIP), Athenahealth (ATHN) and Groupon (GRPN).
- Walt Disney is expected to post second-quarter earnings of 96 cents a share while Trip Advisor is slated to announce earnings of 55 cents a share. Groupon is forecast to post a loss of 3 cents a share for the first quarter. Athenahealth fell sharply in after-hours trading on Monday after Greenlight Capital's David Einhorn warned the company could drop up to 80% and said his fund had a short position in the stock.
- Merck (MRK)reported the sale of its consumer care business to Germany's Bayer for $14.2 billion on Monday. Bayer said the deal would make it the second-largest over-the-counter drug seller globally and the biggest one in North America.
- Ukraine casualties continued to rise. France warned Russian President Vladimir Putin that he will face ongoing pressure for Ukraine to hold a May 25 presidential election.
- Germany's DAX was 0.73% lower while the U.K. FTSE was off 0.50%.
- Markets closed higher Monday on better U.S. economic data after trading lower early in the session on poor Chinese manufacturing figures and Ukraine tensions.
-- By Jane Searle in New York
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