U.S. stock futures falls further after inflation drop, Iraq tensions ... . . . . . . . . . . . Markets are living one of their old stories again: Escalating conflicts in the Middle East drive oil prices up, and stock markets are falling. Sentiment was also dented after data showed wholesale prices surprisingly fell in the U.S. On Thursday, the Dow Jones Industrial Average dropped over 100 points (0.65%). Both the NASDAQ and the S&P 500 fell more than 0.7%, building on losses from Wednesday, when shares fell after the World Bank cut its global economic growth outlook and as House Majority Leader Eric Cantor lost his re-election bid. The global focus has been on Iraq this week. Crude oil prices surged over 2% over the past three days as Iraqi forces battle Islamist militants for control of the nation’s second-largest city, Al Mosul. Crude oil futures on the Nymex rose above $106 a barrel, its highest since September 2013. The brash attack by militants from an Al Qaeda splinter group called ISI is making commodity traders tens as they consider how this crisis could affect Iraq’s oil-producing regions. Worries over higher oil prices took its toll on airline shares. Delta, South West, and United Continental fell over 5%. However, the energy continued to go higher. U.S. stock futures added to early weakness after data by the Labor Department showed an unexpected drop on wholesale prices in the U.S. The final demand producer price index fell 0.2% in May, compared with estimates that called for a 0.1% gain. On a yearly basis, producer prices gained 2%, down from 2.1% over the 12-month period ended April. Prices for goods also fell 0.2 percent last month. Energy costs decreased 0.2 percent last month after a 0.1 percent April gain. Wholesale food expenses decreased 0.2 percent in May as the cost of pork slumped 5.1 percent, the most since April 2012. -Futures on the Dow Jones Industrial Average fell 0.138% to 16655 -Futures on the S&P 500 Index fell 0.120% to 1920.90 -Futures on the NASDAQ 100 gained 0.02% to 3763.75 . As of 08:38 a.m. ET Movers Intel was up after the closing bell after announcing better second quarter and 2014 revenue expectations. The company says demand is stronger than expected for business PCs. Shares of Tesla Motors turned lower after CEO Elon Musk announced that the company will not file patent lawsuits against competitors who use the company`s electric car technology in good faith. Restoration Hardware shares soared more than 13% after the company reported earnings that beat analyst expectations. It`s the latest luxury brand benefiting from increased consumer spending at the high end. Shares of Twitter rose 3.5% after the social media company said its chief operating officer, Ali Rowghani, had resigned. Twitter has struggled -- it`s down over 41% this year -- but several analysts upgraded the stock this week. Infosys slid about 2% on news that a new CEO was appointed to lead the IT services company. #egyptyard
Posted on: Fri, 13 Jun 2014 13:31:45 +0000
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