Bloomberg — U.S. stock futures fell as the Congressional Budget Office said America’s economy would slip into recession if necessary budget measures aren’t taken and concern mounted that Greece will leave the euro area.
Dell Inc. (DELL) plunged 13 percent in German trading after the company forecast fiscal second-quarter revenue that missed analysts’ estimates. Morgan Stanley (MS) dropped after a Massachusetts regulator subpoenaed the investment bank over its handling of Facebook Inc. (FB)’s initial public offering.
Standard & Poor’s 500 Index futures expiring in June declined 0.8 percent to 1,304.5 at 6:43 a.m. in New York. Dow Jones Industrial Average futures expiring the same month lost 90 points, or 0.7 percent, to 12,387.
“Uncertainty surrounding Greece’s membership in the euro and possible contagion into other countries plagued by high deficits just isn’t going away, at least not until Greek elections have taken place on June 17th,” said Markus Huber, head of German sales trading at ETX Capital in London.
Stocks erased gains in the final hour of trading yesterday after former Greek Prime Minister Lucas Papademos said while it is unlikely the Mediterranean nation will leave the euro, it remained a risk, the Wall Street Journal reported.
The leaders of the European Union meet in Brussels today to discuss the sovereign-debt crisis that has wiped about $4 trillion from equity markets worldwide this month.
Japan’s exports in April trailed economists’ estimates, underscoring the risk that weakness in global demand may limit the recovery in the world’s third-biggest economy. In Japan, exports grew 7.9 percent last month from a year earlier. That fell short of the median estimate for an 11.8 percent gain in a Bloomberg News survey.
The U.S. economy will probably tip back into recession next year if Congress fails to address an impending “fiscal cliff,” the Congressional Budget Office said.Continue Reading on www.bloomberg.com