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U.S. futures edge higher amid E.Z. worries; Dow Jones up 0.17%

Published 11/17/2011, 06:30 AM
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Investing.com - U.S. stock futures pointed to a slightly higher open on Thursday, but sustained concerns over the euro zone's worsening debt crisis weighed on market sentiment after Spanish borrowing costs rose to a euro-era high. 

Ahead of the open, the Dow Jones Industrial Average futures pointed to a rise of 0.17%, S&P 500 futures signaled a 0.16% increase, while the Nasdaq 100 futures indicated a 0.11% gain.

Spain sold EUR3.56 billion of 10-year bonds at 6.97% at an undersubscribed auction, while France sold EUR3.33 billion of 2016 notes at a yield of 2.82%.

Following the auction, the European Central Bank resumed purchases of Spanish government debt to ease pressure on borrowing costs.

Market sentiment was hit earlier, after ratings agency Fitch warned about the potential adverse impact of euro zone’s debt crisis on the U.S. banking sector shortly after Moody’s downgraded the ratings of 12 German public-sector banks.

Financial stocks were sharply lower after the news, as shares in Goldman Sachs plunged 4.16% and Citigroup plummeted 4.14%, while JP Morgan and Bank of America saw shares tumble 3.76% and 3.75% respectively.

The technological sector also contributed to losses, with shares in Cisco Systems dropping 1.67% and Microsoft tumbling 2.51%, while chip maker Intel Corp declined 1.58%.

Dell slipped 3.2% after the multinational IT firm posted lower-than-estimated revenue and warned that its full-year revenue could be affected by an industry-wide shortage of hard drives. 

Elsewhere, Abercrombie & Fitch saw shares sink 13.64%, as the teen clothes retailer missed earnings estimates by a huge margin.

On the upside, Research in Motion gained 0.42% after Goldman Sachs upgraded the Blackberry maker's rating to "neutral" from "sell."

Across the Atlantic, European stock markets were sharply lower. The EURO STOXX 50 declined 0.97%, France’s CAC 40 plummeted 1.34%, Germany's DAX dropped 0.93%, while Britain's FTSE 100 tumbled 1.35%.

During the Asian trading session, Hong Kong's Hang Seng Index slumped 1%, while Japan’s Nikkei 225 Index added 0.19%.

Later in the day, the U.S. was to release official data on initial jobless claims, building permits and housing starts and a report on manufacturing activity in the Philadelphia region.

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