U.S. stock futures drop; earnings in focus
NEW YORK (MarketWatch) -- U.S. stock futures dropped on Friday after second-quarter results from major companies disappointed investors and worries about Europe's debt crisis continued to simmer.
Nasdaq-100 futures (NDU2) fell 9.75 points to 2,642.5.
"The biggest driver [for the market] has been earnings," said Art Hogan, a managing director at Lazard Capital Markets. "The economic data this week has been ignored."
"For the earnings-reporting season, expectations had been set low enough across the board for earnings beats," Hogan said. "But we are not seeing robust revenue growth in most cases and guidance has been lackluster."
In premarket trade, shares of
The conglomerate reported a second-quarter profit of $3.1 billion, or 29 cents a share, down from $3.8 billion, or 35 cents a share, a year earlier. Operating profit reached 38 cents. Revenue rose 2% to $36.5 billion.
Analysts polled by FactSet Research were looking for a profit of 37 cents a share on revenue of $36.77 billion.
The industrial conglomerate affirmed its target of delivering double-digit-earnings growth in 2012.
Gold and oil futures posted losses, while the greenback rose against other major currencies, with the dollar index (DXY) up 0.5% to 83.322.
The euro fell 0.7% to $1.2192 and European stocks dropped, as concerns escalated over Spain's rising borrowing costs. Europe Markets
Treasury prices rose on Friday, sending yields lower, as lackluster corporate earnings and worries about Spain's rising borrowing costs prompted investors to seek the safety of U.S. government debt. Yields on 10-year notes (10_YEAR) , which move inversely to prices, fell 4 basis points to 1.469%.
Euro-zone finance ministers on Friday formally approved a financial-aid package for Spain's banking sector, but Spanish government bonds remained under pressure, with the 10-year yield surging to 7.08%.