U.S. stock futures fell, indicating that the Standard & Poor’s Index will extend yesterday’s drop as Japan posted a wider-than-expected trade deficit and investors awaited the minutes of the last Federal Reserve meeting and data on house purchases.
Dell Inc. (DELL) sank 4.6 percent in German trading after the computer-maker late yesterday cut this year’s profit forecast, as personal-computer sales shrink. Bank of America Corp. (BAC) lost 1.1 percent. Clearwire Corp. (CLWR) may fall after the stock was downgraded by RBC Capital Markets.
S&P futures expiring in September retreated 0.3 percent to 1,408.1 at 7:21 a.m. in New York. U.S. stocks fell yesterday, with the S&P failing to remain above a four-year high, as a slump in technology shares overshadowed optimism euro-area leaders will make progress in resolving the region’s crisis. Contracts on the Dow Jones Industrial Average slipped 30 points, or 0.2 percent, to 13,169 today.
“The market is currently in need of a positive catalyst to push higher, without which it will begin to question whether the recent optimism was justified,” Richard Hunter, head of equities at Hargreaves Lansdown Stockbrokers in London, wrote in an e-mail. “The Japanese trade deficit numbers have not helped sentiment.”
Japanese Deficit
Japan’s trade deficit was 517.4 billion yen ($6.5 billion) in July as Europe’s sovereign-debt crisis and a slowdown in China dragged down exports, data released by the Finance Ministry showed. That compares with a revised 60.3 billion yen surplus in June and the median forecast of a 270 billion yen deficit in a Bloomberg News survey of 28 analysts.In the U.S., a report today may show that sales of existing properties rose to a 4.51 million annual pace in July from a 4.37 million pace in June, economists predicted. A release tomorrow will show purchases of new houses climbed to a 365,000 rate last month from a 350,000 pace in June, according to the median forecast of economists surveyed by Bloomberg.
A Commerce Department report on Aug. 24 may show that durable-goods orders increased 2.5 percent, the most this year, economists projected.
Federal Reserve Bank of Chicago President Charles Evans said today that a weakening in global trade is “awful.”
The U.S. central bank will consider circumstances in the economy and financial stability to decide whether it needs to step up monetary easing, Evans told reporters in Beijing. He declined to elaborate ahead of a scheduled press briefing tomorrow at the U.S. Embassy in China’s capital.
Dell Slides
Dell fell 4.6 percent to $11.77 as the world’s third- largest maker of personal computers forecast third-quarter revenue that missed analysts’ estimates and cut its profit outlook by 20 percent. Competition from Apple Inc.’s iPad and an anemic global economic recovery is dragging down PC demand.Bank of America, the second-biggest U.S. lender, declined 1.1 percent to $8.10 in German trading.
Clearwire, the unprofitable company attempting to build a wireless network across the U.S, may fall after the stock was downgraded to underperform from sector perform, meaning investors should sell the shares, at RBC Capital Markets by equity analyst Jonathan Atkin.
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