US Stock Futures Signal Another Gloomy Outlook
The US stock futures index dipped today following a sell-off in the previous session that erased most of the gains of the year. While futures on the Dow Jones Industrial Average fell by 78.00 points to 10,259, those on the Nasdaq 100 lost 22.75 points to 1,815. Meanwhile, S&P 500 futures dropped 9.70 points to 1,075.
Investors continue to adopt a gloomy outlook after the Fed’s statement reflected a gloomier view on the recovery earlier this week. Cisco Systems’ (NASDAQ: CSCO) disappointing revenue forecast ensured that the company’s stock chopped 7.8% to stand at $21.88 in pre-market trade.
The Labor Department has released its first-time claims for unemployment benefits data. The number of initial claims for regular state unemployment insurance benefits has risen by 2,000 to 484,000 for the week ended August 7, according to the department. The claims have reached the highest level since February. Analysts were expecting claims to decline to 465,000 from last week’s figure of 479,000. The July report on export and import prices is also due to be released today.
On the corporate front, American International Group Inc (NYSE: AIG) and General Motors (NYSE: GM) are set to hog the limelight. AIG has kicked off negotiations with potential investors to sell stakes in its Asian business, AIA, ahead of an IPO. Meanwhile, GM has obtained a $5 billion credit facility that will enable it to return into the capital markets, a year after a bankruptcy.
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