Investing.com - U.S. stock futures pointed to a lower open on Thursday, as fears over the strength of Europe’s banking sector continued to weigh on market sentiment after mixed results at an auction of French government debt.
Ahead of the open, the Dow Jones Industrial Average futures pointed to a fall of 0.49%, S&P 500 futures signaled a 0.62% loss, while the Nasdaq 100 futures indicated a 0.44% decline.
Risk appetite was hit after a report on Wednesday showed that that overnight deposits at the European Central Bank reached an all-time high this week, indicating that European banks remain unwilling to lend to each other.
Meanwhile, France sold EUR4.02 billion of 10-year bonds at an average yield of 3.29%, compared with 3.18% at a similar auction last month. Bids exceeded the amount sold 1.6 times, down from a bid-to-cover ratio of 3.1 in December.
Financial stocks were expected to be active, following sharp losses in European lenders earlier in the day. In pre-market trade, shares in Bank of America were down 1.20% and Citigroup tumbled 1.49%.
The energy sector was also due to stay in focus as plaintiffs who won an appeal in a multibillion-dollar environmental case against Chevron Corp. in an Ecuador court Tuesday were gearing up to go after assets in all corners of the global oil firm's empire.
Elsewhere, shares in Costco Wholesale Corp were slipped 0.10% after posting a lower-than-expected 7% rise in December sales at stores open at least a year.
Also in earnings, Optical components maker Oclaro Inc forecast stronger-than-expected second-quarter revenue as the company resumed production at many of its manufacturing lines affected by the Thailand floods. Shares surged 12.24% in after hour trading.
According to a New York Post report, Pepsi said it is considering cutting about 4,000 jobs and reducing pension contributions in order to boost its earnings, sending the company’s shares 0.06% lower in after hour trading.
Other stocks in focus included Eastman Kodak, which is preparing a Chapter 11 bankruptcy protection filing in case it is unable to sell its digital patents to raise capital.
Across the Atlantic, European stock markets were sharply lower. The EURO STOXX 50 plunged 1.08%, France’s CAC 40 dropped 0.85%, Germany's DAX retreated 0.66%, while Britain's FTSE 100 declined 0.37%.
During the Asian trading session, Hong Kong's Hang Seng Index edged up 0.2%, while Japan’s Nikkei 225 Index fell 0.8%.
Later in the day, the U.S. was to release the ADP report on private sector employment as well as data on initial jobless claims and service sector activity.
Ahead of the open, the Dow Jones Industrial Average futures pointed to a fall of 0.49%, S&P 500 futures signaled a 0.62% loss, while the Nasdaq 100 futures indicated a 0.44% decline.
Risk appetite was hit after a report on Wednesday showed that that overnight deposits at the European Central Bank reached an all-time high this week, indicating that European banks remain unwilling to lend to each other.
Meanwhile, France sold EUR4.02 billion of 10-year bonds at an average yield of 3.29%, compared with 3.18% at a similar auction last month. Bids exceeded the amount sold 1.6 times, down from a bid-to-cover ratio of 3.1 in December.
Financial stocks were expected to be active, following sharp losses in European lenders earlier in the day. In pre-market trade, shares in Bank of America were down 1.20% and Citigroup tumbled 1.49%.
The energy sector was also due to stay in focus as plaintiffs who won an appeal in a multibillion-dollar environmental case against Chevron Corp. in an Ecuador court Tuesday were gearing up to go after assets in all corners of the global oil firm's empire.
Elsewhere, shares in Costco Wholesale Corp were slipped 0.10% after posting a lower-than-expected 7% rise in December sales at stores open at least a year.
Also in earnings, Optical components maker Oclaro Inc forecast stronger-than-expected second-quarter revenue as the company resumed production at many of its manufacturing lines affected by the Thailand floods. Shares surged 12.24% in after hour trading.
According to a New York Post report, Pepsi said it is considering cutting about 4,000 jobs and reducing pension contributions in order to boost its earnings, sending the company’s shares 0.06% lower in after hour trading.
Other stocks in focus included Eastman Kodak, which is preparing a Chapter 11 bankruptcy protection filing in case it is unable to sell its digital patents to raise capital.
Across the Atlantic, European stock markets were sharply lower. The EURO STOXX 50 plunged 1.08%, France’s CAC 40 dropped 0.85%, Germany's DAX retreated 0.66%, while Britain's FTSE 100 declined 0.37%.
During the Asian trading session, Hong Kong's Hang Seng Index edged up 0.2%, while Japan’s Nikkei 225 Index fell 0.8%.
Later in the day, the U.S. was to release the ADP report on private sector employment as well as data on initial jobless claims and service sector activity.