US stock futures tumbled on Wednesday amid uncertainty about the fate of ailing automaker General Motors. A worse than expected ADP report also pressurized stocks before the opening bell.
At 8:19 am ET, Standard & Poor's 500 Index futures fell 9.30 points to 785.50. Dow Jones Industrial Average futures declined 71 points to 7491. Nasdaq Composite Index futures plunged 15 points to 1222.50.
According to Bloomberg report, President Barack Obama believes that a quick bankruptcy is the most likely way to restructure ailing automaker General Motors Corp. (NYSE: GM) into a competitive company.
ADP survey on Wednesday reported that a total of 742,000 private-sector jobs were lost in March, worse than the forecast of 663,000.
According to the Mortgage Bankers Association, the volume of mortgage applications filed last week rose by a seasonally adjusted 3% from the week before.
Biopharmaceutical company Celgene Corp. (NASDAQ: CELG) indicated that first-quarter and full-year profit and sales would miss Wall Street expectations. The company said it expects first-quarter earnings per share for 2009, adjusted for items, to increase about 20% from the year-ago period.
Late on Tuesday, Apollo Group Inc. (NASDAQ: APOL) announced that it swung to second quarter net income of $125.3 million, or 77 cents a share, compared to a net loss of $32 million, or 19 cents a share, in the year ago period. Revenue jumped to $876.1 million from $693.6 million.
Borders Group Inc. (NYSE: BGP) reported that its fourth-quarter net income plunged 54% to $28.9 million or $0.48 a share, from $67.3 million, or $1.14 a share, in the prior year quarter. On an adjusted basis, Borders Group registered fourth-quarter income of $63.8 million or $1.05 a share, compared to $74.3 million, or $1.26 a share, in the comparable quarter last year. Revenue dropped 14% to $1.09 billion.
On the front of economic data, February's construction spending data, pending home sales and March's ISM index are scheduled for release at 10:00 am ET. Auto sales data for the month of March is due for release later in the day.
US stocks finished with gains on Tuesday as investors shrugged off bleak economic data. Shares got a big boost from a rally in banking and technology stocks.
European stocks retreated in afternoon trade. At 13:20 pm London time, the U.K. FTSE fell 13.52 points or 0.34% to 3,912.62. The German DAX and French CAC decreased 0.25% and 0.50% respectively.
Asian stocks finished mixed. The Nikkei 225 rose 242.38 points or 2.99% to 8,351.91. The Hang Seng index of Hong Kong fell 56.48 points or 0.42% to 13,519.54.
NYMEX crude oil for May delivery declined as much as $1.48 or 3% to $48.18 a barrel.
Disclosure: Author does not own any of the stocks discussed here.
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