Stocks Set to Open Down on London Blasts
Thursday July 7, 8:31 am ET
Stocks Set to Open in a Steep Decline After London Explosions; Dow Futures Down 138 Points
NEW YORK (AP) -- U.S. stock futures are in a steep decline Thursday morning after reports of subway and bus explosions in London.
Dow Jones futures were recently down 138 points, while Nasdaq futures are off 22 points and S&P futures were down 17.10 points.
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Near simultaneous explosions rocked the London subway and three double-decker buses at the morning rush hour Thursday, police and news reports said, injuring some people and prompting officials to shut down the entire Underground transport network. Some media reports said there were fatalities.
The explosions came a day after London was awarded the 2012 Olympics and as the G-8 summit was getting under way in Scotland. Initial reports blamed a power surge, but officials weren't ruling out an intentional attack. Shares on the FTSE 100 are trading 3.2 percent lower, to 5062.2, on the news.
In Japan, the Nikkei 225 Stock Average ended down 0.1 percent to 11590.14, as declines in U.S. stocks Wednesday prompt profit-taking in economy-sensitive stocks like retailers and food makers.
In corporate news, UnitedHealth Group Inc. said it agreed to acquire PacifiCare Health Systems Inc. for $8.11 billion in cash and stock, the latest in a buying spree that is remaking the nation's second-largest health insurer into a bigger, more diverse player in an industry facing major changes. The deal would add PacifiCare's 3 million health-plan members to UnitedHealth's 23 million, and bolster UnitedHealth's position in two growing markets: California and seniors covered by Medicare. PacifiCare also provides specialty benefits, such as vision and dental benefits, to millions of other people.
After the bell Wednesday, late traders weren't impressed with Starbucks Corp. as it posted a 7 percent increase in June same-store sales. Similarly, a 28 percent advance in same-store sales for American Eagle Outfitters Inc. wasn't enough to spur an afterhours rally in its shares.
Alcoa Inc., the world's largest aluminum company, kicks off the second-quarter earnings season Thursday when it reports after the stock market closes. Analysts expect the Pittsburgh company to report earnings of 45 cents a share compared with 46 cents a hare a year earlier.
Stocks fell Wednesday as the price of oil hit a fresh high in a session that featured acquisition-related activity involving PacifiCare Health Systems, Amvescap Inc. and Zions Bancorp. The Dow Jones Industrial Average lost 101.12 points, or 0.97 percent, to 10270.68; the Nasdaq Composite Index fell 10.10, or 0.49 percent, to 2068.65; and the Standard & Poor's 500 Index dropped 10.05, or 0.83 percent, to 1194.94.
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