U.S. Stock Futures Edge Higher After Tuesday's Tumble
DOW JONES & COMPANY, INC. 8:13 AM ET 05/27/15
U.S. stock futures inched higher Wednesday, pausing a day after mixed economic data sent stocks tumbling.
S&P 500 futures added 2.2 points, or 0.1%, to 2107.10.
E-mini Dow futures rose 21 points, or 0.1%, to 18074. E-mini Nasdaq-100 futures gained 4.5 points, or 0.1%, to 4484.25. Changes in stock futures don't always accurately predict moves in the stock market after the opening bell.
On Tuesday, the Dow industrials fell 190.48 points to 18041.54, its biggest one-day loss since April 30. The S&P 500 declined 21.86 points, or 1%, to 2104.20 and the Nasdaq Composite Index tumbled 56.61 points, or 1.1%, to 5032.75, the biggest losses for both since May 5.
Stocks were weighed down by shares of small companies, which are typically more sensitive to the U.S. economy, and previously highflying sectors of the market, such as shares of technology companies.
Tuesday's selloff marked a sharp divergence from recent stock-trading sessions. Last week both the Dow industrials and the S&P 500 hit record highs despite anemic trading volume. On Tuesday volumes picked up but remained below average.
"Investors struggled a bit coming back from a three-day weekend," said John Brady, managing director at futures brokerage R.J. O'Brien. As trading for the month of May winds down this week, the focus will be on data, most important Friday's revised reading of first-quarter gross domestic product, he said. The initial reading of first-quarter GDP showed the U.S. economy slowed dramatically, growing at a sluggish 0.2%. Economists surveyed by The Wall Street Journal expect that to be revised downward to a 1% contraction in Friday's revised reading.
Investors will also continue to eye developments in Greece around its approaching debt payments this week, something that helped lead U.S. stocks lower on Tuesday, Mr. Brady said.
Earlier on Wednesday a weekly survey by the Mortgage Bankers Association showed that mortgage applications fell 1.6% for the week ended the previous Friday.
In Europe, Germany's DAX gained 0.2% and France's CAC 40 added 0.5%.
In commodity markets, gold futures slipped 0.1% to $1185.30 an ounce. Crude-oil futures gained 0.3% to $58.23 a barrel. The yield on the 10-year Treasury note was at 2.158%, compared with 2.135% on Tuesday. Yields fall as prices rise.
In corporate news, Michael Kors Holdings Ltd. shares fell 12% premarket after the retailer warned that current- quarter results would fall short of expectations.
Write to Corrie Driebusch at corrie.driebusch@wsj.com
(END) Dow Jones Newswires
05-27-150813ET
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