AMZN Amazon.com Inc

By Ellie Ismailidou and Barbara Kollmeyer, MarketWatch

Facebook jumps 12%; St Jude's surges 25%; dollar tumbles as yen soars

U.S. stock futures held on to firm losses Thursday, following news that the U.S. economy sputtered in the first quarter to the lowest growth in two years, as businesses slashed investment by the steepest rate since the Great Recession.

Earlier, stock futures had tumbled tracking declines in equities across Asia after the Bank of Japan dealt a surprise blow to markets by offering no additional stimulus.

Dow industrials futures fell 126 points, or 0.7%, to 17,837, while S&P 500 futures were down 14 points, or 0.7%, to 2,077. Nasdaq-100 futures dropped 12 points, or 0.3%, to 4,411.

First-quarter gross domestic product (http://www.marketwatch.com/story/gdp-slows-to-05-in-first-quarter-2016-04-28)grew only 0.5%, below economists' expectations for a 0.7% growth.

Inflation as measured by the Federal Reserve's preferred PCE index rose at a scant 0.3% annual rate in the first quarter. But the core inflation rate that excludes food and energy climbed at 2.1% pace, up from 1.3% in the prior quarter--an increase that could potentially move the Fed closer to its next interest-rate hike later in the year.

On the bright side, the number of Americans who applied for unemployment benefits (http://www.marketwatch.com/story/us-jobless-claims-climb-9000-to-25700-2016-04-28) remained near a four-decade low, reflecting continuing strength in the labor market.

The weak U.S. economic growth data added to an earlier global downbeat sentiment after Japan's central bank left its main policies unchanged, (http://www.marketwatch.com/story/no-additional-stimulus-from-bank-of-japan-negative-rate-holds-2016-04-27)leading the Nikkei 225 index to close down 3.6% (http://www.marketwatch.com/story/asian-markets-mostly-up-ahead-of-bank-of-japan-meeting-2016-04-27). That was the biggest daily percentage loss since early February, a move that triggered a sharp rally for the yen.

The dollar struggled to hold on to (http://www.marketwatch.com/story/yen-rips-higher-against-dollar-after-boj-shocks-market-with-no-action-2016-04-28) the Yen108 level, a sharp slide from Yen111.32 late Wednesday. Japan also released a pile of data, including consumer prices (http://www.marketwatch.com/story/japan-consumer-prices-dip-for-1st-time-in-5-months-2016-04-27), which pointed to deflation.

The dollar extended losses after BOJ Governor Haruhiko Kuroda said the bank will "do whatever it takes" (http://www.marketwatch.com/story/bank-of-japans-kuroda-vows-to-do-whatever-it-takes-to-boost-inflation-2016-04-28) to reach its 2% inflation target and said there were no limits to monetary policy measures, according to Dow Jones Newswires.

Need to know:It gets uglier for stocks if this safety net breaks (http://www.marketwatch.com/story/it-gets-uglier-for-stocks-if-this-safety-net-breaks-2016-04-28)

Surprise, surprise: Stephen Guilfoyle, New York-based managing director of floor operations for Deep Value Execution Services, said the BOJ just proved there are no sure things: "Oh, the rumor mill was running hot on Wall Street yesterday. Not only were they going to keep buying bonds, ETFs, pencils, hammers, and old VHS tapes, but they were going to invent stuff to buy. Not so, Batman."

In a note to clients, Guilfoyle said the Bank of Japan probably didn't want "discomfort" of hosting a Group of Seven meeting in May "while having overtly fired the most recent shot in a global currency war."

Read: No additional stimulus from Bank of Japan, negative rate holds (http://www.marketwatch.com/story/no-additional-stimulus-from-bank-of-japan-negative-rate-holds-2016-04-27)

(http://www.marketwatch.com/story/no-additional-stimulus-from-bank-of-japan-negative-rate-holds-2016-04-27)That BOJ decision comes a day after the U.S. Federal Reserve opted to leave interest rates unchanged (http://www.marketwatch.com/story/fed-stands-pat-and-is-silent-about-future-of-interest-rates-2016-04-27), but kept its options open for a possible move in June. The Dow and S&P 500 ended slightly higher, but were weighed by losses from Apple Inc. after the iPhone maker's downbeat results.

Stocks to watch:St. Jude Medical Inc.(STJ) surged 25% in premarket after Abbott Laboratories(ABT) said it would buy the medical device maker in a deal valued at $25 billion (http://www.marketwatch.com/story/abbott-labs-agrees-to-buy-st-jude-medical-in-deal-valued-at-25-billion-2016-04-28). Abbot Labs dropped nearly 9%.

Tech stocks could see a small buffer from a key Internet stock. Facebook Inc.(FB) jumped 12% in premarket after it posted a 52% surge in revenue Wednesday, blowing past analysts' estimates. They were on track to open Thursday at around $118.50, which would be a record open.

Read:Facebook is the new Google (http://www.marketwatch.com/story/facebook-is-the-new-google-2016-04-27)

(http://www.marketwatch.com/story/facebook-is-the-new-google-2016-04-27)Amazon.com, Inc.(AMZN) gained 1.4% premarket after the company said Wednesday it would create 2,000 jobs in New Jersey (http://www.marketwatch.com/story/amazons-new-fulfillment-centers-to-create-2000-jobs-2016-04-27)by opening two fulfillment centers in the state, as the it seeks to broaden its logistics network amid increasing demand.

First Solar Inc.(FSLR) shares fell 3.3% in premarket after the solar-panel maker's profit fell short of expectations (http://www.marketwatch.com/story/first-solar-names-ceo-revenue-nearly-doubles-2016-04-27). The company also announced a new chief executive officer.

Among the slew of big names reporting ahead of the open, Ford Motor Co.(F) shares rose 2% after results, while Bristol-Myers Squibb Co. (BMY) also ticked higher on its earnings. ConocoPhillips(COP) wasn't moving after the energy group posted a loss that was smaller than expected. Colgate-Palmolive Co (http://www.marketwatch.com/story/colgate-palmolive-tops-sales-expectations-matches-on-profit-2016-04-28).(CL) edged up after topping sales expectations and matching on profit.

Dow Chemical Co (http://www.marketwatch.com/story/dow-chemical-adjusted-profit-beats-expectations-2016-04-28).(DOW) slipped just under 1%, as profit just beat expectations.

United Parcel Service Inc.(UPS) gained 0.5% in premarket after reporting better-than-expected earnings (http://www.marketwatch.com/story/ups-profit-beats-as-deliveries-increase-2016-04-28) as growth in domestic and international package delivery drove profit.

Valeant Pharmaceuticals Inc.(VRX.T) is still ahead. The company is expected to announce sweeping changes to its board of directors as early as Friday, The Wall Street Journal reported (http://www.marketwatch.com/story/valeant-to-replace-5-longtime-board-members-2016-04-27).

Read:Valeant CEO tells Senate committee drug price increases were too aggressive (http://www.marketwatch.com/story/valeant-ceo-to-tell-senate-committee-drug-price-increases-were-too-aggressive-2016-04-27)

Other markets: European stocks tracked global losses, stumbling 1.2%. Oil prices (http://www.marketwatch.com/story/crude-prices-pare-gains-after-us-data-shows-rising-supplies-2016-04-28) wavered after a report of bigger-than-expected growth in U.S. crude inventories spurred some investors to unload the commodity.

Gold prices moved up 0.5%, to $1,256.50 an ounce.

(END) Dow Jones Newswires

April 28, 2016 09:05 ET (13:05 GMT)

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