U.S. Stock Futures Drop; McDonald’s, Home Depot Fall in Europe
Aug. 30 (Bloomberg) -- Bloomberg's Deborah Kostroun reports on the performance of the U.S. equity market today. U.S. stocks rose, rebounding from a 1.2 percent drop in the Standard & Poor’s 500 Index, after the Federal Reserve said some policy makers wanted to take more action to stimulate the economy during their meeting this month. Bloomberg's Pimm Fox also speaks. (Source: Bloomberg)
Aug. 30 (Bloomberg) -- Alan Gayle, chief investment officer with Ridgeworth Capital Management, talks about the outlook for U.S. equity markets. Gayle also discusses the European debt crisis. He speaks from Richmond, Virginia, with Susan Li on Bloomberg Television's "First Up." (Source: Bloomberg)
U.S. stock futures fell before economic reports that may show a decline in residential real- estate prices and a weakening in consumer confidence.
Home Depot Inc. (HD), the largest U.S. home improvement retailer, and McDonald’s Corp. (MCD), the world’s biggest restaurant chain, declined in German trading. Universal Display Corp. (PANL) surged more than 9 percent after agreeing a license deal with Panasonic Idemitsu OLED Lighting Co.
Standard & Poor’s 500 Index futures expiring in September slipped 0.4 percent to 1,203 at 7:15 a.m. in New York. Dow Jones Industrial Average futures expiring the same month lost 33 points, or 0.3 percent, to 11,484.
Stocks rose yesterday, sending the S&P 500 to its highest level in almost a month, amid optimism the economy will recover and after Hurricane Irene failed to shut financial markets.
The S&P 500 fell 18 percent from its three-year high on April 29 to its low on Aug. 8 amid concern that the global economy will slow. Gauges of financial, industrial and energy shares, which are the most tied to the economy, led declines in the index, slumping at least 22 percent over that period.
“We’re still waiting for data that may affirm what investors have been thinking more and more: that there may be a double dip,” said Jacques Porta, a fund manager at Ofi Patrimoine in Paris, who helps oversee about $400 million in stocks. “The economic statistics will be important. If the numbers only show a soft patch, then we have to come back to the market. The clouds are still dark, but we have to be reactive and catch the train before it’s too late.”
House Prices, Confidence
Residential real-estate prices probably dropped in the year ended June by the most in 19 months, indicating the housing market continues to hamper the U.S. recovery, economists said before a report today.
The S&P/Case-Shiller index of home values in 20 cities fell 4.6 percent from June 2010, the biggest 12-month decrease since November 2009, according to the median forecast of 31 economists surveyed by Bloomberg News. Another report may show that consumer confidence sank in August to its lowest level in 10 months.
The Federal Reserve will release the minutes from its most recent policy meeting at 2 p.m. New York time today. Chairman Ben S. Bernanke said on Aug. 26 in Jackson Hole, Wyoming, that the economy isn’t deteriorating enough to warrant any immediate stimulus and the central bank still has tools to stimulate growth.
Home Depot lost 1.3 percent to $33.56 in Germany. McDonald’s retreated 1.1 percent to $89.79.
Bank of America Corp. (BAC) slipped 0.6 percent to $8.34 in early New York trading. JPMorgan Chase & Co. slid 0.8 percent to $37.34.
Universal Display jumped 9.2 percent to $55.92 in German trading after saying that Panasonic Idemitsu OLED Lighting will use the company’s materials and technology in lighting products.
To contact the reporter on this story: Adria Cimino in Paris at acimino1@bloomberg.net.
To contact the editor responsible for this story: Andrew Rummer at arummer@bloomberg.net.
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