(By Balaseshan) U.S. stock-index futures pointed to a lower open on
the Wall Street, after a report showed that U.S. economy added fewer
than expected jobs last month and unemployment rate unexpectedly ticked
Mini Dow industrial average futures plunged 206.00 points to
12,177.00. The Nasdaq Futures dropped 25.50 points to 2,498.50. Standard
and Poor's 500 futures fell 15.00 points to 1,294.20.
On the US
economic front, the U.S. non-farm payrolls report showed that just
69,000 jobs were added in May, trailing economists forecast of addition
of 150,000 jobs. Private non-farm payrolls showed 82,000 jobs were added
in May, trailing economists estimate of 160,000 jobs. Unemployment rate
was essentially unchanged at 8.2 percent, while economists estimated
Personal income rose 0.2 percent and personal spending advanced 0.3
percent for April, a data from the Bureau of Economic Analysis showed.
In March, personal income gained 0.4 percent and spending rose 0.3
percent. Economists expected a 0.3 percent increase in income and a 0.3
percent rise in spending in April.
The results of the manufacturing survey of the Institute for Supply
Management are scheduled at 10 am. Economists expect the index to show a
reading of 53.9 for May, a modest drop from 54.8 in April. The Commerce
Department's construction spending report is also scheduled to be
released at 10 am is expected to show a 0.4 percent increase in April.
On European economic news front, employers slashed 110,000 jobs across the
eurozone in April, as the unemployment rate hit 11%, which is the
highest level since the creation of the common currency. There were 24.7
million unemployed in the EU in April, of whom 17.4 million were in the
On Asian news front, the Beijing government's National Bureau of
Statistics said index of purchasing managers' sentiment dropped to 50.4
in May from 53.3 last month. In a separate report, a purchasing
managers' index fell to 48.4 in May from 49.3 last month.
On Thursday, U.S. stocks ended on a lower note ahead of the key
government non-farm payrolls report due Friday, even as a slew of tepid
economic readings dented sentiment.
Hot Stocks Of The Day: PIP, SLE, SNN, ESL, IP
In corporate news, PharmAthene Inc. (NYSEAMEX:PIP) jumped 27.05
percent in premarket after the Delaware Court of Chancery has issued its
final judgment in the biodefense company's litigation against SIGA
Technologies Inc. (NASDAQ:SIGA). The court also provided clarity on the
payment process to PharmAthene.
Sara Lee Corp. (NYSE:SLE) gained 2.39 percent in premarket after the
company's board has unanimously approved the separation of its
international Coffee & Tea business. The board also approved a
1-for-5 reverse stock split of its stock, effective immediately after
Artificial hip and knee maker Smith & Nephew Plc (NYSE:SNN) said
it has decided to start a voluntary market withdrawal of the optional
metal liner component of its R3 Acetabular System. The withdrawal of the
optional metal liner component does not impact other R3 System liners.
This action does not change the current practice for patient follow-up
care for this component.
Esterline Technologies Corp. (NYSE:ESL), a maker of engineered
systems for aerospace and defense markets, reported a decline in second
quarter earnings due to higher costs. Revenue missed Street's
expectations. The company narrowed fiscal 2012 earnings guidance below
International Paper (NYSE:IP) has agreed to sell three U.S container board mills under a settlement agreement with the U.S.
Department of Justice (DOJ). Excluding working capital, the combined
sale is valued at $470 million.
The European markets traded
lower on increasing signs of debt crisis in Spain and Greece, with
Germany's DAX falling 2.78 percent to trade at 6,090.37. France's CAC40
plunged 1.94 percent to 2,958.59. Britain's FTSE 100 fell 1.01 percent
Asian markets closed on a mixed note amid weak Chinese manufacturing
data. The Shanghai Composite Index edged 0.05 percent higher to end at
2,373.44. Hong Kong's Hang Seng shed 0.38 percent to close at 18,558.34.
Japan's Nikkei 225 fell 1.20 percent to close at 8,440.25. India's BSE
Sensex finished at 15,965.16, down 1.56 percent.
Ahead of the opening bell, crude
oil futures fell 2.18 percent to $84.64 per barrel. Gold futures shed
0.67 percent to $1,552.10 per ounce.
In the currency market, the
euro shed 0.35 percent against the U.S. dollar to 1.2323, and the
British pound dipped 0.64 percent against the greenback to 1.5308. The
dollar edged 0.24 percent lower against the Japanese yen to 78.1200.