June 8, 2012 / 12:31 PM / 7 years ago

US STOCKS-Futures fall as caution creeps back into market

* Sources say Spain to request EU aid over the weekend

* German imports tumbled in April

* Apple may block Samsung phone

* Futures down: S&P 500 7 pts, Dow 50 pts, Nasdaq 12 (Updates futures)

By Edward Krudy

NEW YORK, June 8 (Reuters) - U.S. stock index futures fell on Friday after an expected new round of monetary easing failed to materialize, leaving investors to chew over the slowing global economy and Europe’s ongoing debt crisis.

Spain is expected to request European aid for its ailing banks over the weekend to forestall worsening market turmoil, becoming the fourth and biggest country to seek assistance since the euro zone’s debt crisis began, EU and German sources said.

German imports tumbled at their fastest rate in two years in April, and exports fell more than expected, another sign Europe’s largest economy is beginning to feel the chill from the euro zone debt crisis.

Rick Meckler, president of investment firm LibertyView Capital Management in New York, said traders were nervous ahead of the weekend given the uncertainty emanating from Europe.

“It does carry the risk that if the calls are not heeded, particularly by Germany, you have to come in on a Monday and deal with a meltdown situation, so that is keeping the markets from really having any meaningful recovery,” he said.

The S&P 500 gave up an early rally on Thursday after Federal Reserve Chairman Ben Bernanke’s did not indicate more forthcoming stimulus for the economy in remarks before a congressional committee. Hopes of a globally coordinated effort had been raised earlier in the day after China cut lending rates.

September S&P 500 futures fell 7 points and were below fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures fell 50 points, and Nasdaq 100 futures fell 12 points.

Still, the S&P 500 was on course for its best week this year after a substantial rally in the middle of the week. That came shortly after the index fell below it 200-day moving average, in what some analysts said was an oversold bounce. The strong week also comes after the worst month since September.

“The rally we had, which was pretty strong, was a bit more of a technical than a fundamental bounce and the market is struggling to find the good news to keep it going,” Said Meckler.

European shares as measured by the FTSEurofirst 300 dropped 0.5 percent in morning trade, while the euro fell against the dollar and oil retreated. In Asia, Japan’s Nikkei index slid 2.1 percent posting its worst string of losses since almost 1975.

McDonald’s Corp fell 1.9 percent in premarket trade after the fast-food chain said global comparable sales rose 3.3 percent in May and that foreign currency translation negatively impacted second quarter earnings by 7 to 9 cents per share.

Shares in Chesapeake Energy Corp climbed 3.3 percent to $18.43 in premarket trade. The embattled company said it plans to sell its midstream assets in three transactions for total expected cash proceeds of more than $4.0 billion.

An Apple Inc lawyer said the iPhone and iPad maker may seek a legal order stopping the launch of Samsung Electronics Co Ltd’s Galaxy S III phone in the United States later this month.

Best Buy Co Inc founder and chairman, Richard Schulze, resigned from the retailer’s board on Thursday and said he was exploring options for his 20.1 percent ownership stake, a move seen as a possible precursor of a Schulze-led private takeover. (Ediitng by Padraic Cassidy)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below