Index futures edge lower as Europe weighs
By Edward Krudy
NEW YORK (Reuters) - Stock index futures edged lower on Tuesday as traders remained focused on high bond yields in Spain and as a cautious outlook from tech bellwether Texas Instruments weighed on sentiment.
Texas Instruments Inc's (TXN.O: Quote) second-quarter profit beat Wall Street expectations but the company warned that its third-quarter revenue would be weaker than usual as customers are cautious due to global economic uncertainties.
Concerns about the euro zone focused on Spain's high borrowing costs due to fears the country may seek a bailout, a survey showing Germany's private sector shrank for a third straight month, and Moody's move to cut Germany's rating outlook to negative.
"The market is experiencing a renewed set of fears with concerns over a global economic slowdown and continued worries stemming from the euro zone," said Andre Bakhos, director of market analytics at Lek Securities in New York. "Investors are stepping back and taking a risk-off stance for the moment."
"Throw in earnings season as another variable and we are back to an erratic environment," he said.
European stocks were slightly down in morning trade, adding to the market's two-session slide, as a weaker-than-expected German purchasing managers' survey showed private sector activity in Europe's largest economy contracted for a third month.
S&P 500 futures fell 3.9 points and were below fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures lost 6 points and Nasdaq 100 futures were off 0.25 point.
Whirlpool Corp (WHR.N: Quote), the world's largest appliance maker, missed Wall Street's expectations for quarterly earnings and sales, hurt by weak demand in Europe and a stronger dollar. The company's shares fell 2 percent to $66 in light trade. Continued...