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U.S. stock futures dip as Applied Materials drops; Dow sheds 0.15%

Published 05/25/2011, 08:28 AM
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Investing.com – U.S. stock futures pointed to a modestly lower open on Wednesday, as investors awaited key data on U.S. durable goods orders, while shares in Applied Materials dropped sharply ahead of the open after posting a disappointing outlook.

Dow Jones Industrial Average futures pointed a decline of 0.15%, the S&P 500 futures dipped 0.2%, while Nasdaq 100 futures shed 0.15%.   

The world’s largest producer of chip-making equipment Applied Materials saw shares tumble 5.2% in pre-market trade after it forecast full-year earnings that missed market expectations. The company lowered its sales forecast for the remainder of the year, raising concern that semiconductor makers are trimming orders.

Shares in clothing retailer Collective Brands plunged 15.1% after it reported a 51% drop in first quarter profit. The company blamed higher gasoline and food prices and unusually cold weather for the results, which were significantly lower than market expectations.

Shares in the largest U.S. wholesale retailer Costco Wholesales dropped 2% after reporting fiscal third quarter earnings that were broadly in line with market expectations. The company warned that the rising cost of raw materials was expected to cut into profits in the coming year.

American International Group slumped 2.5% after the U.S. Treasury Department sold 200 million shares, or roughly 15% of its stake in the bailed-out insurer for nearly USD8.7 billion on Tuesday.

On the upside, satellite television provider TiVo saw shares add 1.1% after it swung to a first quarter profit of USD139 million, compared to a loss of USD14.2 million a year earlier.

Meanwhile, shares in the financial sector, such as Bank of America and Citigroup could be active after a Wall Street Journal report said that the five biggest U.S. banks could face liabilities of USD17 billion or more in civil lawsuits if a settlement isn't reached to address improper foreclosure practices.

Other stocks in focus included software developer NetApp and information technology giant Computer Sciences, which were both slated to release earnings later in the day.

Across the Atlantic, European stock markets came off their session lows after Finland's parliament approved Portugal's bailout package, easing some concerns over the sovereign debt crisis in the euro zone.

The EURO STOXX 50 edged 0.1% lower, France’s CAC 40 dipped 0.15%, Germany's DAX shed 0.13%, while Britain's FTSE 100 eased down 0.05%.   

During the Asian trading session, Japan’s Nikkei 225 Index closed 0.6% lower, after official data showed that Japan posted its first trade deficit for the month of April in 31 years as exports slumped in the aftermath of the March 11 earthquake.

Later in the day, the U.S. was to publish official data on durable goods orders as well as a government report on crude oil stockpiles.
 

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