U.S. Stock Futures Fall After Gloomy Data

By Saumya Vaishampayan 

U.S. stock futures fell Thursday, weighed down by declines in Europe that were spurred by another weak reading on the eurozone economy.

Dow Jones Industrial Average futures lost 68 points, or 0.4%, to 17589. S&P 500 futures declined eight points, or 0.4%, to 2039 and Nasdaq-100 futures fell 16 points, or 0.4%, to 4208. Changes in stock futures don't always accurately predict moves in the stock market after the opening bell.

European stocks fell after a survey on manufacturing and services activity indicated that eurozone growth will remain weak in the fourth quarter. Markit's composite purchasing managers index fell to 51.4 in November from 52.1 in October. November's level marks a 16-month low, but still indicates that activity is increasing. The Stoxx Europe 600 fell 0.6%.

Stocks declined slightly on Wednesday, with the Dow down less than 0.1% to 17685.73. The S&P 500 fell 0.2% to 2048.72. Investors largely ignored the release of minutes from the Federal Reserve's latest meeting, which gave little insight into when the central bank could begin raising interest rates.

U.S. stocks continue to hover near all-time highs, propped up by improving economic data and upbeat corporate earnings. Stocks have also benefited from low interest rates across the globe, which many investors say leave them with few attractive alternatives. For the year, the Dow has ended at 26 records and the S&P has hit 43 closing highs.

"Today, with the PMI numbers, European markets are taking the lead," said Colin Cieszynski, chief market strategist at CMC Markets. "That could change later in the morning when the U.S. data starts coming out," he added.

Stock futures briefly extended losses after the release of two U.S. economic reports. U.S. consumer prices held steady in October, the Labor Department said Thursday. Excluding volatile food and energy categories, prices rose 0.2%. The report was the latest sign of weak inflation in the U.S. Economists polled by The Wall Street Journal had expected consumer prices to fall 0.1% and so-called core prices to rise 0.1%.

Separately, jobless claims fell by 2,000 to 291,000 in the week ended Nov. 15, the Labor Department said. Economists surveyed by the Journal had expected claims to fall to 283,000. Claims have stayed below 300,000 for 10 weeks in a row.

Later in the morning, data on manufacturing and existing-home sales are scheduled for release.

China reported weak data. Chinese factory activity fell to its lowest level in six months in November, with the preliminary HSBC manufacturing purchasing managers index falling to 50.0 from a final reading of 50.4 in October. A reading of 50 indicates flat activity.

Chinese stocks were little changed. But declines were visible in mining shares on the Stoxx Europe 600, which are sensitive to Chinese demand.

Both the European and Chinese data reinforced the view that global growth continues to slow, said Mr. Cieszynski.

In commodity markets, crude-oil futures rose 0.3% to $74.71 a barrel. Gold futures fell 0.2% to $1191.70 an ounce.

Demand for U.S. government debt increased, pulling the yield on the 10-year Treasury note down to 2.328%. Yields fall as prices rise.

In corporate news, Best Buy Co. reported third-quarter results that beat analysts' expectations. Domestic sales, excluding newly opened or closed locations, increased 3.2%. Shares jumped 6% premarket.

Shares of Boeing Co. fell 0.8% in premarket trading. Airbus Group NV beat Boeing to win a deal from Delta Air Lines Inc. for 50 jetliners, The Wall Street Journal reported.

Write to Saumya Vaishampayan at [e-mail]

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