Futures slide on more disappointing corporate news
NEW YORK (AP) — Stock futures slid for the third out of the past four days as more blue-chip companies released disappointing profit numbers and trimmed their outlooks for the year.
Shares of Wal-Mart fell before the opening bell Thursday after the company reported that revenue at comparable stores fell, and the world’s largest retailer cut its profit and revenue expectations for 2013.
Dow Jones industrial futures fell 120 points to 15,184. S&P futures lost 14.2 points to 1,667.80. Nasdaq futures fell 31.5 points to 3,091.75.
Wal-Mart’s quarterly report, which fell short of Wall Street expectations on both profit and revenue, follows Macy’s, which also cut its outlook for the year Wednesday.
And after the market closed Wednesday, Dow component Cisco Systems said it would cut about 4,000 jobs and company shares plunged after its outlook fell short of most projections.
Cisco shares fell more than 7 percent in premarket trading Thursday.
A slow recovery for American jobs continues. The Labor Department said the number of people seeking unemployment benefits dropped 15,000 last week to a seasonally adjusted 320,000, the fewest since October 2007.
The four-week average, which smooths out week-to-week fluctuations, fell 4,000 to 332,000, the fewest since November 2007 and the fifth straight decline.
The Labor Department also reported that consumer prices rose only slightly last month.
However, paltry numbers from retailers overshadowed macroeconomic news Thursday, and shares in the sector were mostly lower in premarket trading.
Kohl’s second-quarter profit declined, and it also trimmed its outlook for the year Thursday.
Nordstrom is set to report its earnings after the closing bell.