Futures Fall After HP Results, Economic News
Stock futures weakened after a disappointing forecast by Hewlett-Packard, and after a worse-than-expected report on housing and industrial production.
U.S. industrial output was unchanged in April, as factory production fell 0.4 percent, the first drop in 10 months, according to a Federal Reserve report. Analysts surveyed by Reuters expected a 0.4 percent in overall output.
Capacity utilization fell to 76.9 percent in April from a downwardly revised 77 percent in March. Analysts surveyed by Reuters had expected capacity utilization to rise to 77.6 percent.
Housing starts fell 10.6 percent in April, to an annual rate of 523,000 units compared with an upwardly revised gain of 12.9 in March, a 585,000-unit pace, the Commerce Department said. Building permits, meanwhile, fell 4 percent compared with a gain of 7.5 percent in March, Commerce said. Residential construction fell 23.9 percent from April last year.
Futures initially lost ground after Hewlett Packard disappointed with news it would cut its forecast for the year, despite good first quarter results. The tech giant released its results a day before scheduled.
Wal-Mart also fell despite reporting a profit as investors focused on disappointing U.S. same-store sales results.
Home Depot, meanwhile, traded flat after beating profit estimates by one penny despite a fall in sales compared with the first quarter of last year.
Also on the economic front, industrial production data will be released at 9:15 a.m. and is expected to have risen 0.5 percent in April, slower than March's 0.8 percent advance, according to Briefing.com.
On Tap This Week:
TUESDAY: JPMorgan shareholder meeting, Shell Oil annual meeting; earnings after-the-bell from Dell.
WEDNESDAY: Weekly mortgage applications, oil inventories, FOMC minutes, Fed's Bullard speaks; earnings from Abercrombie & Fitch, BJ's, and Target.
THURSDAY: Weekly jobless claims, existing home sales, Philadelphia Fed survey, leading indicators, money supply, Halliburton shareholder meeting, Intel shareholder meeting, McDonald's shareholder meeting, Sallie Mae annual meeting, LinkedIn IPO; earnings from GameStop, Sears and Gap.
FRIDAY: JCPenney shareholder meeting, Macy's shareholder meeting, Time Warner shareholder meeting; earnings from Ann Taylor
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