U.S. stock market futures fell on Friday,
as investors lost enthusiasm over China’s interest-rate cut on worries of what
the move indicated about the direction of the global economy.
“Rather than
boost confidence that the economic moderation in China can be reversed, the
[rate cut] instead reinforced why it happened to begin with, the slowdown is
beginning to hurt,” according to Peter Boockvar, equity strategist at Miller
Tabak.
Futures for the
Dow Jones Industrial Average fell 61 points, or 0.5%, to 12,345. Weighing on the
blue-chip benchmark, McDonald’s Corp. reported global sales at stores open at
least 13 months climbed 3.3% in May, short of analysts’ forecasts, as the
fast-food chain’s sales fell in China and Japan.
MarketWatch
In comments on
Wednesday, Atlanta Fed President Dennis Lockhart and Federal Reserve Vice Chair
Janet Yellen led investors to become optimistic about the possibility of more
easing ahead, due in part to the effects of the euro-zone debt crisis.
Reuters U.S. stocks rose
on Thursday after China's central bank cut lending and deposit rates, but
retreated from session highs as comments from Federal Reserve Chairman Ben
Bernanke dimmed hopes for further stimulus measures from the U.S. central bank.
Reuters But early
enthusiasm faded as Bernanke told a congressional committee that the central
bank was ready to take action if financial troubles increase, citing
difficulties in Europe, but gave no hint of an imminent stimulus plan.
Reuters "I don't think
the investment community thinks they are immune to Europe so it's not like it's
a big revelation, but needless to say (Bernanke) is what the market is reacting
to," said Jason Weisberg, managing director at Seaport Securities Corp in New
York. Reuters On Friday,
S&P 500 futures dropped 5.7 points, or 0.4%, to 1,304.70, while Nasdaq-100
futures shed 7.5 points, or 0.3%, to 2,523. MarketWatch Fears about a
looming fiscal crisis at the end of the year are starting to pinch job growth
and threatening to undercut the nation’s fragile recovery, a growing number of
economists and employers say. CS Monitor Federal Reserve
Chairman Ben S. Bernanke, in testimony Thursday before Congress, repeatedly
warned about the so-called fiscal cliff - a reference to the expiration of tax
cuts Dec. 31 and the imposition of automatic spending reductions Jan. 1. CS
Monitor By some
accounts, the U.S. economy could see an unprecedented fiscal hit of as much as
$720 billion if the slated changes take effect. CS Monitor
SAR/HJ
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