(By Salman - iStockAnalyst Writer) US stock futures retreated on Tuesday as a wider-than-expected loss at UBS AG renewed concerns about the health of banking sector. However, futures trimmed their losses after Berkshire Hathaway announced that it has agreed to acquire railroad firm Burlington Northern Santa Fe (NYSE:
BNI) for $44 billion.
At 8:11 am ET, the S&P 500 futures fell 7.10 points to 1032. The Dow Jones Industrial average futures dropped 64 points to 9671. The Nasdaq Composite futures retreated 8 points to 1661.
Early on Tuesday, Viacom (NYSE:
VIA) said that its third-quarter profit surged 15 percent to $463 million, or 76 cents per share, from $401 million, or 65 cents per share, in the prior-year quarter. Excluding certain one-time gains, adjusted earnings came to 69 cents a share. Revenue slipped 3 percent to $3.3 billion.
Archer Daniels Midland (NYSE:
ADM) said that its first-quarter profit plunged 53 percent to $496 million, or 77 cents per share, compared with $1.04 billion, or $1.62 per share, in the comparable quarter last year. Revenue declined 29 percent, to $14.9 billion.
Tenet Healthcare Corp.(NYSE:
THC) said Tuesday that it swung to a third quarter loss of $3 million, or 1 cent a share $104 million, or 22 cents a share, compared to earnings of $104 million, or 22 cents a share, in the prior-year quarter. Net operating revenue increased 5.2% to $2.24 billion, compared to $2.13 billion a year ago.
Warren Buffet's Berkshire Hathaway (NYSE:
BRK-A)on Tuesday said that it has agreed to acquire railroad firm Burlington Northern Santa Fe (NYSE:
BNI) for $44 billion. Berkshire said that it will pay $100 a share in cash and stock for the 77.4% of the company it does not already own. It is also taking on $10 billion of Burlington Northern debt.
Meanwhile, Johnson & Johnson (NYSE:
JNJ) announced that it intends to eliminate up to 7% of its global workforce as part of a cost-cutting plan aimed at saving the company up to $1.7 billion by 2011.
On the economic front, factory orders data is due for release at 10:00 am ET. Also, the Federal Open Market Committee begins a two-day meeting on Tuesday on interest rate policy and are expected to keep interest rates close to zero.
US stocks finished higher on Monday as better-than-expected housing and manufacturing data sparked a rally in financial and technology shares.
European stocks retreated in afternoon trade. At 12:54 pm London time, the UK FTSE fell 97.27 points or 1.92% to 5,006.53. The German DAX and French CAC decreased 1.59% and 1.97% respectively.
Asian stocks finished down. The Hang Seng index of Hong Kong dropped 380.13 points or 1.76% to 21,240.06.
NYMEX crude oil for December delivery declined $1.10 or 1.4% to $77.03 a barrel in electronic trading.
Disclosure: Author doesn't own any of the stocks discussed here.
