U.S. index futures erased earlier gains as equities across the world extended declines on global growth concerns.
Costco Wholesale Corp. fell 3.6 percent in premarket New York trading after the largest warehouse-club chain in the U.S. reported disappointing first-quarter earnings. Dow Chemical Co. and DuPont Co. jumped at least 8 percent after people with knowledge of the matter said the companies are in late-stage merger talks and a deal could be announced as soon as this week.
S&P 500 futures expiring in December fell 0.2 percent to 2,055 at 10:17 a.m. in London, after earlier rising as much as 0.5 percent. The equity benchmark posted its fourth decline in five days yesterday, tracking a selloff in equity markets around the world, on renewed worries about the prospects for economic growth after disappointing Chinese data. Dow Jones Industrial Average contracts dropped 13 points, or 0.1 percent, to 17,521, today.
Investors are watching economic data for evidence that the U.S. recovery is strong enough to withstand an expected increase in borrowing costs. A report today is forecast to show growth in wholesale inventories slowed to 0.2 percent in October. Traders are pricing in an 80 percent chance that the Federal Reserve will raise interest rates next week.
Among other stocks moving on corporate news, Yahoo! Inc. advanced 2.4 percent after it was said to be scrapping the long-planned spinoff of its stake in Alibaba Group Holding Ltd.
Investors will also look to the final batch of major earnings releases this week, with Adobe Systems Inc., FedEx Corp. and Oracle Corp. due to report. With almost all members of the S&P 500 having posted results, about 74 percent beat profit estimates, while only 44 percent exceeded sales forecasts.
Source : Bloomberg