By Saumya Vaishampayan
U.S. stock futures fell Thursday, weighed down by declines in
Europe that were spurred by another weak reading on the eurozone
economy.
Dow Jones Industrial Average futures lost 68 points, or 0.4%, to
17589. S&P 500 futures declined eight points, or 0.4%, to 2039
and Nasdaq-100 futures fell 16 points, or 0.4%, to 4208. Changes in
stock futures don't always accurately predict moves in the stock
market after the opening bell.
European stocks fell after a survey on manufacturing and
services activity indicated that eurozone growth will remain weak
in the fourth quarter. Markit's composite purchasing managers index
fell to 51.4 in November from 52.1 in October. November's level
marks a 16-month low, but still indicates that activity is
increasing. The Stoxx Europe 600 fell 0.6%.
Stocks declined slightly on Wednesday, with the Dow down less
than 0.1% to 17685.73. The S&P 500 fell 0.2% to 2048.72.
Investors largely ignored the release of minutes from the Federal
Reserve's latest meeting, which gave little insight into when the
central bank could begin raising interest rates.
U.S. stocks continue to hover near all-time highs, propped up by
improving economic data and upbeat corporate earnings. Stocks have
also benefited from low interest rates across the globe, which many
investors say leave them with few attractive alternatives. For the
year, the Dow has ended at 26 records and the S&P has hit 43
closing highs.
"Today, with the PMI numbers, European markets are taking the
lead," said Colin Cieszynski, chief market strategist at CMC
Markets. "That could change later in the morning when the U.S. data
starts coming out," he added.
Stock futures briefly extended losses after the release of two
U.S. economic reports. U.S. consumer prices held steady in October,
the Labor Department said Thursday. Excluding volatile food and
energy categories, prices rose 0.2%. The report was the latest sign
of weak inflation in the U.S. Economists polled by The Wall Street
Journal had expected consumer prices to fall 0.1% and so-called
core prices to rise 0.1%.
Separately, jobless claims fell by 2,000 to 291,000 in the week
ended Nov. 15, the Labor Department said. Economists surveyed by
the Journal had expected claims to fall to 283,000. Claims have
stayed below 300,000 for 10 weeks in a row.
Later in the morning, data on manufacturing and existing-home
sales are scheduled for release.
China reported weak data. Chinese factory activity fell to its
lowest level in six months in November, with the preliminary HSBC
manufacturing purchasing managers index falling to 50.0 from a
final reading of 50.4 in October. A reading of 50 indicates flat
activity.
Chinese stocks were little changed. But declines were visible in
mining shares on the Stoxx Europe 600, which are sensitive to
Chinese demand.
Both the European and Chinese data reinforced the view that
global growth continues to slow, said Mr. Cieszynski.
In commodity markets, crude-oil futures rose 0.3% to $74.71 a
barrel. Gold futures fell 0.2% to $1191.70 an ounce.
Demand for U.S. government debt increased, pulling the yield on
the 10-year Treasury note down to 2.328%. Yields fall as prices
rise.
In corporate news, Best Buy Co. reported third-quarter results
that beat analysts' expectations. Domestic sales, excluding newly
opened or closed locations, increased 3.2%. Shares jumped 6%
premarket.
Shares of Boeing Co. fell 0.8% in premarket trading. Airbus
Group NV beat Boeing to win a deal from Delta Air Lines Inc. for 50
jetliners, The Wall Street Journal reported.
Write to Saumya Vaishampayan at saumya.vaishampayan@wsj.com
Access Investor Kit for The Boeing Co.
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=US0970231058