Post by anenro on Aug 12, 2015 18:09:28 GMT 4
U.S. Index Futures Slide as China Devalues Yuan
U.S. stock-index futures slid, indicating equities will fall, after China devalued its currency by the most in two decades. Kraft Heinz Co. retreated 1.7 percent in early New York trading after second-quarter sales missed estimates. Google Inc. advanced 5.8 percent after saying it will reorganize into a holding company to be called Alphabet Inc. that gives its main Web operations greater independence. Standard & Poor’s 500 Index E-mini contracts expiring next month declined 0.6 percent to 2,088.25 at 7:36 a.m. in New York. Stocks gained the most in three months on Monday after Warren Buffett’s Berkshire Hathaway Inc. agreed to buy Precision Castparts Corp. and commodity-related shares rallied. Dow Jones Industrial Average futures slid 106 points, or 0.6 percent, to 17,447 today. “There’s more caution after a very strong day yesterday,” said Veronika Pechlaner, an investment manager at Ashburton Ltd. in Jersey, the Channel Islands. “The market is coming to terms on how much Asian exposure listed U.S. companies have.” China devalued the yuan by 1.9 percent after data this month showed a plunge in exports, weaker-than-estimated manufacturing and a slowdown credit growth. The surprise move rippled through global markets, sparking selloffs in emerging-market currencies, commodities, and European auto and luxury stocks with exposure to China. General Motors Co. and Ford Motor Co. each slipped 1.5 percent. Alcoa Inc., the largest U.S. producer of aluminum, fell 1.8 percent. Investors will also look to corporate releases, as the earnings season draws to a close. Cisco Systems Inc. and News Corp. are among companies posting quarterly updates this week. Of the S&P 500 members that have already reported, 74 percent beat profit estimates and about half topped sales projections. Analysts now project a more modest drop in second-quarter earnings, calling for a 2.1 percent fall instead of a 6.4 percent decline a month earlier. Symantec Corp. added 7.2 percent after increasing its share buyback program, and as Carlyle Group LP said it will buy the security software maker’s Veritas data-storage unit for $8 billion in cash.
Read full article..
www.bloomberg.com/news/articles/2015-08-11/u-s-index-futures-slide-as-china-devalues-yuan-kraft-misses