Investing.com – U.S. stock futures pointed to a lower open on Thursday, tracking losses in global equities amid mounting fears over Greece's debt crisis, while markets digested weekly data on first-time jobless claims and a report on housing starts.
Dow Jones Industrial Average futures pointed to a drop of 0.3%, the S&P 500 futures shed 0.27%, while Nasdaq 100 futures indicated a decline of 0.2%.
Stock futures pared losses after official data showed that first time jobless claims fell more-than-expected last week. A separate report showed that U.S. building permits rose unexpectedly in May, while housing starts rose more-than-expected.
Fears over Greece’s debt woes were exacerbated after the ruling Socialist Party said it was convening an emergency meeting of its lawmakers, following a string of parliamentary resignations over the past 24 hours.
The meeting, scheduled to take place later in the day, was likely to delay an expected cabinet reshuffling by Prime Minister George Papandreou, adding to investors’ nervousness over the country’s debt crisis.
The cost of insuring the country’s sovereign debt against default jumped to a euro lifetime high. Portuguese and Irish borrowing costs also hit record highs, stoking fears of contagion.
Shares in the financial sector retreated in pre-market trade, tracking their European counterparts lower. Citigroup saw shares slump 1.1%, JP Morgan Chase declined 1%, while U.S.-listed shares of National Bank of Greece tumbled 5.7%.
Meanwhile, shares in fiber-optic equipment maker Finisar plunged 17.1% after it projected second quarter earnings that fell short of market expectations after Wednesday’ closing bell.
The downbeat forecast weighed on other shares in the sector, with JDS Uniphase dropping 4.5%, while Oclaro slumped 5%.
On the upside, shares in home goods retailer Pier 1 Imports climbed 1.1% after it reported an 84% increase in first quarter net income, as results were boosted by improved merchandise margins.
Shares in natural gas producer Southern Union rallied 16.5% after it agreed to be acquired by Energy Transfer for approximately USD7.9 billion.
Raw material producers, such as Freeport McMoran Copper & Gold, Alcoa and British Petroleum could be active as commodity prices declined, pressured by a stronger U.S. dollar.
Other stocks in focus include Blackberry maker Research In Motion. The company was scheduled to release its fiscal first quarter earnings results after Thursday’s closing bell.
Across the Atlantic, European stock markets posted sharp losses. The EURO STOXX 50 dropped 1.05%, France’s CAC 40 tumbled 1.3%, Germany's DAX retreated 1.1%, while Britain's FTSE 100 tumbled 1.4%.
During the Asian trading session, Japan’s Nikkei 225 Index fell 1.7%, while Hong Kong’s Hang Seng Index declined 1.75%.
Later in the day, the U.S. was to publish a report on manufacturing activity in the Philadelphia-region, while President of the Federal Reserve Bank of Dallas was to speak at a public engagement.
Dow Jones Industrial Average futures pointed to a drop of 0.3%, the S&P 500 futures shed 0.27%, while Nasdaq 100 futures indicated a decline of 0.2%.
Stock futures pared losses after official data showed that first time jobless claims fell more-than-expected last week. A separate report showed that U.S. building permits rose unexpectedly in May, while housing starts rose more-than-expected.
Fears over Greece’s debt woes were exacerbated after the ruling Socialist Party said it was convening an emergency meeting of its lawmakers, following a string of parliamentary resignations over the past 24 hours.
The meeting, scheduled to take place later in the day, was likely to delay an expected cabinet reshuffling by Prime Minister George Papandreou, adding to investors’ nervousness over the country’s debt crisis.
The cost of insuring the country’s sovereign debt against default jumped to a euro lifetime high. Portuguese and Irish borrowing costs also hit record highs, stoking fears of contagion.
Shares in the financial sector retreated in pre-market trade, tracking their European counterparts lower. Citigroup saw shares slump 1.1%, JP Morgan Chase declined 1%, while U.S.-listed shares of National Bank of Greece tumbled 5.7%.
Meanwhile, shares in fiber-optic equipment maker Finisar plunged 17.1% after it projected second quarter earnings that fell short of market expectations after Wednesday’ closing bell.
The downbeat forecast weighed on other shares in the sector, with JDS Uniphase dropping 4.5%, while Oclaro slumped 5%.
On the upside, shares in home goods retailer Pier 1 Imports climbed 1.1% after it reported an 84% increase in first quarter net income, as results were boosted by improved merchandise margins.
Shares in natural gas producer Southern Union rallied 16.5% after it agreed to be acquired by Energy Transfer for approximately USD7.9 billion.
Raw material producers, such as Freeport McMoran Copper & Gold, Alcoa and British Petroleum could be active as commodity prices declined, pressured by a stronger U.S. dollar.
Other stocks in focus include Blackberry maker Research In Motion. The company was scheduled to release its fiscal first quarter earnings results after Thursday’s closing bell.
Across the Atlantic, European stock markets posted sharp losses. The EURO STOXX 50 dropped 1.05%, France’s CAC 40 tumbled 1.3%, Germany's DAX retreated 1.1%, while Britain's FTSE 100 tumbled 1.4%.
During the Asian trading session, Japan’s Nikkei 225 Index fell 1.7%, while Hong Kong’s Hang Seng Index declined 1.75%.
Later in the day, the U.S. was to publish a report on manufacturing activity in the Philadelphia-region, while President of the Federal Reserve Bank of Dallas was to speak at a public engagement.