BEFORE THE BELL: US Stock Futures Drop Ahead Of US GDP Data

30th Jul 2010 12:41

By Polya Lesova Investors' nerves were on edge Friday ahead of the release of U.S. second-quarter economic growth data, as futures pointed to opening losses on Wall Street. Futures on the Dow Jones Industrial Average dropped 33 points to 10376. S&P 500 futures fell 4.20 points to 1092.80 and Nasdaq 100 futures declined 6.50 points to 1850.70. The Dow fell 0.3% on Thursday, dropping for a second session. Asian stocks ended mostly lower Friday, with Japan's Nikkei Stock Average dropping 1.6%. The Stoxx Europe 600 index fell 0.4% in late morning trade following a flood of earnings news from major French firms. The Commerce Department will release its estimate for second-quarter gross domestic product at 8:30 a.m., EDT. Economists expect growth to slow a bit to a 2.5% rate in the April-June quarter, compared to 2.7% growth in the first quarter. "Watch today's numbers and also watch out for the annual revisions that are released," Deutsche Bank strategists wrote in a note. "It could change a lot of perceptions about the shape of the recession and subsequent recovery." In addition to the GDP data, a report on business activity in the Chicago area will be released at 9:45 a.m., EDT, to be followed by data on July consumer sentiment. On the corporate front, pharmaceutical giant Merck Co. (MRK) said its second-quarter net profit fell 51% to $752.4 million, or 24 cents a share. U.S.-listed shares of Alcatel-Lucent (ALU) rallied 11% in pre-market trade, as the telecoms-equipment giant reported in-line underlying earnings for the second quarter and forecast a stronger second half. Oil major Chevron Corp. (CVX) and power firm Public Service Enterprise Group Inc. (PEG) will also report quarterly results before the market opens. Walt Disney Co. (DIS) announced it has agreed to sell its Miramax Films business to Filmyard Holdings for over $660 million. Oil giant Total SA (TOT) said second-quarter net profit soared 43% to EUR3.1 billion ($4.05 billion) and expressed confidence about the second half of the year. Its shares gained 1.2% in Paris, outperforming the CAC-40 index , which dropped 0.6% in intraday trading. Car maker Renault SA (RNO.FR) swung to a first-half net profit, but warned about the uncertain economic outlook. French power firm Electricite de France SA (EDF.FR) said it has received a EUR6.9 billion offer from a Hong Kong-based consortium for its U.K. electricity distribution networks. In London, shares of British Airways PLC (BAIRY, BAY.LN) gained 1.3% after the airline said its fiscal first-quarter net loss widened to GBP122 million ($190.5 million), but it was still ahead of consensus forecasts. The firm still expects to break even for the year on a pre-tax basis. In the currency markets, the dollar index gained 0.2% to 81.806, while the euro fell 0.5% to $1.3013. Crude-oil futures dropped 64 cents to $77.72 a barrel in electronic trading on the New York Mercantile Exchange. Gold futures were little changed at $1,170.60 an ounce. -By Polya Lesova; 49 69 29725517; [email protected] (END) Dow Jones Newswires July 30, 2010 07:41 ET (11:41 GMT)