U.S. stock-index futures declined, indicating the Standard & Poor’s 500 Index will fall for the eighth time in nine days, before a report on initial jobless claims that may add to concern about the economic recovery.
Chevron Corp. (CVX) declined 0.5 percent in German trading as oil traded near a five-week low on concern the economic recovery is faltering in the U.S. Boeing Co. (BA) and DuPont Co., two stocks dependent on economic growth, fell more than 0.7 percent. Kraft Foods Inc. gained 3.1 percent after saying it will spin off its North American grocery business.
Futures on the S&P 500 expiring in September dropped 0.8 percent to 1,244.90 at 6:54 a.m. in New York. Dow Jones Industrial Average futures lost 74 points, or 0.6 percent, to 11,744.
“Everybody is nervous about the outlook,” said Jane Coffey, head of equities at Royal London Asset Management, which manages about $51 billion. “Politicians aren’t getting their act together particularly convincingly. There certainly seems to be very little risk appetite amongst investors.”
U.S. equities rose yesterday, preventing the longest slump in the Dow average since 1978, amid speculation the Federal Reserve will start another stimulus program to prevent a recession. The Dow had fallen for eight consecutive days as growing concern that the U.S. economy is faltering erased $1.07 trillion from American equities, according to Bloomberg data.
Initial applications for unemployment benefits increased to 405,000 last week, Labor Department figures may show today in Washington, according to the average estimate from a Bloomberg News survey of economists. The report last week showed jobless claims fell by 24,000 to 398,000, the lowest level since April.
The government’s monthly payrolls report tomorrow may show employers added 85,000 jobs in July, according to forecasts compiled by Bloomberg.
Chevron, the second-largest U.S. oil company, dropped 0.5 percent to $102.29, as crude oil for September delivery lost 20 cents to $91.73 a barrel in electronic trading on the New York Mercantile Exchange at 9:56 a.m. London time.
Airplane maker Boeing declined 0.9 percent to $66.76 in German trading, while DuPont fell 0.8 percent to $50.10.
Kraft Foods Inc. (KFT), climbed 3.1 percent to $35.35 after it reported second-quarter adjusted profit that beat analysts’ estimates and said it will spin off its North American grocery business to shareholders, splitting the existing company in two.
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