By Saumya Vaishampayan
U.S. stock futures fell Thursday, weighed down by soft economic
reports from Europe and China.
S&P 500 futures declined six points, or 0.3%, to 2094.
E-mini Dow futures lost 67 points, or 0.4%, to 17878, and e-mini
Nasdaq-100 futures slipped 10 points, or 0.2%, to 4435. Changes in
stock futures don't always accurately predict moves in the stock
market after the opening bell.
Data showing the eurozone's economy slowed in April weighed on
European stocks. Germany's DAX fell 1.3% and France's CAC 40 lost
1%.
Chinese manufacturing activity fell to a one-year low, another
sign of a slowdown in the world's second-largest economy. Asian
stocks were mixed, with the Hang Seng Index losing 0.4% and the
Shanghai Composite Index adding 0.4%.
The economic reports from Europe and China weighed on stocks in
premarket trading, as slowing global growth casts a shadow over the
outlook for U.S. corporate profits.
"We know it's not easy for U.S. corporations to increase
earnings meaningfully at this point in the cycle," said Dan Morris,
global investment strategist at TIAA-CREF, which manages $611
billion. Companies had been looking to sell more products in
Europe, where the European Central Bank is attempting to kick-start
growth, he said. "That was one of your bright spots, and that
bright spot just got a little less bright," he added.
U.S. stocks rose Wednesday, with gains in technology stocks
propelling the Nasdaq Composite closer to its 15-year-old record.
The Nasdaq advanced 0.4% to 5035.17, ending just 0.3% shy of its
record close of 5048.62 from March 2000. The Dow rose 0.5% to
18038.27 and the S&P gained 0.5% to 2107.96.
While the Dow and S&P have minted several records in the
last six years of a bull market, most recently on March 2, the
Nasdaq has yet to breach its all-time high from the tech bubble.
The tech-heavy index crossed 5000 for the first time since 2000 on
March 2 and made another run at its record in late March.
Investors continued to focus on first-quarter earnings
reports.
General Motors Co. reported a $945 million net profit in the
first quarter, but its operating performance fell short of
expectations. Shares slipped 3% premarket.
Procter & Gamble Co. said sales fell 7.6% in the March
quarter due to the strong dollar. Shares fell 1.4% premarket.
Caterpillar Inc. lifted its profit outlook for the year after
reporting better-than-expected earnings in the first quarter.
Shares rose 3.6% in premarket trading.
In economic news, U.S. jobless claims rose by 1,000 to 295,000
in the week ended April 18, the Labor Department said Thursday.
Economists surveyed by The Wall Street Journal expected 290,000
claims. Later in the morning, readings on manufacturing in April
and March home sales are due.
The yield on the 10-year Treasury note was at 1.973%, compared
with 1.972% on Wednesday. Yields rise as prices fall. Gold futures
added 0.1% to $1188.30 an ounce. Crude-oil futures rose 0.2% to
$56.28 a barrel.
Write to Saumya Vaishampayan at saumya.vaishampayan@wsj.com
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