Stock futures decrease with Microsoft, Caterpillar; Greek worries remain
U.S. stock index futures dropped on Tuesday, considered by company earnings results including those of sector bellwethers Caterpillar and Microsoft.
- Concerns remained over Greece’s new anti-bailout government and its propositions for the euro zone. The leftist government that came to authority in Athens afterward elections on Sunday looks set on a conflict course with the country’s creditors. U.S.-traded shares of the National Bank of Greece (N:NBG) dropped 16.8% in premarket trading.
- Shares of Microsoft (O:MSFT) dropped 7.5% in premarket trading the day after the Dow component reported results. The core engine of its historic earnings influence, selling Windows and Office to big businesses, is signifying marks of fading.
- Shares of construction and mining equipment maker Caterpillar (N:CAT) dropped 6.2% after its net profit approached below market expectations, due mostly to the recent fall in the price of oil and lower prices for copper, iron ore and coal.
- Market participant were watching out for a snowstorm that appeared to have spared New York City but continues to pound parts of the U.S. Northeast. New York Stock Exchange and Nasdaq spokesmen said Tuesday would be business as usual.
- Economic data projected on Tuesday includes December strong goods orders at 8:30 a.m. EST (1330 GMT), November Case Shiller home prices half an hour later and Markit’s gauge of the U.S. services sector growth at 9:45 a.m. (1445 GMT). New home sales and consumer confidence data are also due shortly after the opening bell on Wall Street.
- Facebook shares dropped 1.1% premarket after opening to the world’s largest social network and its Instagram photo-sharing site was OFFLINE around the world for up to an hour on Tuesday. The company said the reason was an internal fault and not an outside attack.
- Procter & Gamble (N:PG) shares dropped 2.5% in premarket trading after the world’s largest household products maker reported a near 31% drop in quarterly profit, hurt by a stronger dollar.
- Pfizer (N:PFE) reported stronger-than-estimated quarterly results as sales of vaccines and cancer drugs advanced, but the company anticipate 2015 earnings below Wall Street expectations and its shares dropped 1.1% in trading before the opening bell.
Futures snapshot at 7:56:
- S&P 500 e-minis were down 0.73% or 15 points, with 123,497 contracts changing hands.
- Nasdaq 100 e-minis were down 0.87% or 37 points, in volume of 22,748 contracts.
- Dow e-minis <1YMc1> were down 1.11% or 195 points,, with 21,695 contracts changing hands.