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U.S. stock futures lower on Greece uncertainty, U.S. data; Dow sheds 0.85%

Published 06/15/2011, 08:40 AM
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Investing.com – U.S. stock futures pointed to a lower open on Wednesday, as ongoing uncertainty over a resolution to Greece’s debt woes weighed on sentiment, while investors digested reports on consumer price inflation and manufacturing activity in New York. 

Dow Jones Industrial Average futures pointed to a drop of 0.85%, the S&P 500 futures shed 0.83%, while Nasdaq 100 futures indicated a decline of 0.88%.    

Stock futures added to losses after official data showed that U.S. consumer prices rose more-than-expected in May, while an index of manufacturing conditions in New York State fell into negative territory for the first time in six months.

Euro zone finance ministers failed to reach an agreement on a second Greek bailout plan in an emergency meeting on Tuesday, adding to investors’ nervousness over the country’s debt crisis.

In Athens, protesters gathered outside Parliament, clashing with riot police, as lawmakers were set to vote on austerity measures later in the day.  

Shares in the financial sector retreated in pre-market trade, tracking their European counterparts lower. Citigroup saw shares slump 1.1%, Bank of America declined 1%, while U.S.-listed shares of Deutsche Bank fell 1.25%.

Meanwhile, shares in clothing retailer JC Penny sank 1.9% after Morgan Stanley said that the company’s earnings are at risk over at least the next few quarters, citing continued loss of market share. The bank maintained its ‘underweight’ rating on the stock.

The world’s largest marketer of lawn and garden care products Scotts Miracle-Gro saw shares tumble 4.95% after it cut its full-year earnings forecast, citing colder-than-usual weather for hurting their results.

Raw material producers, such as Freeport McMoran Copper & Gold and oil giant Exxon-Mobil could be active as commodity prices declined, pressured by a stronger U.S. dollar.

Other stocks in focus include internet radio company Pandora Media, which was slated to make its trading debut on the New York Stock Exchange under the symbol ‘P’, after it sold USD235 million of stock in an initial public offering on Tuesday.

Across the Atlantic, European stock markets declined, as shares in French lenders BNP Paribas, Societe Generale and Credit Agricole slumped after Moody’s placed their ratings under review, citing their exposure to Greek debt.

The EURO STOXX 50 dropped 0.9%, France’s CAC 40 fell 0.75%, Germany's DAX slumped 0.7%, while Britain's FTSE 100 edged 0.4% lower.      

During the Asian trading session, Japan’s Nikkei 225 Index eased up 0.3%, while Hong Kong’s Hang Seng Index retreated 0.7% as banks were pressured after the People’s Bank of China raised reserve requirements for lenders by 0.5%.  

Later in the day, the U.S. was to publish official data on foreign investment, industrial production as well as a report on crude oil inventories.

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