U.S. stock index futures pointed to a lower open on Wall Street on Thursday as hope of a resolution to the euro zone debt crisis evaporated ahead of a two-day summit of European Union leaders.
European
leaders meet in Brussels on Thursday afternoon for the two-day summit,
with German Chancellor Angela Merkel already stating they must
concentrate on fundamental reforms rather than emergency proposals put
forward by Italy and Spain to help alleviate their cost of borrowing on
the markets.
Merkel
has also refused to discuss the issue of debt burden sharing unless
national budget controls across the euro zone are introduced first.
An
auction of Italian five and 10-year bonds held ahead of the summit saw
yields spike to their highest level since December 2011.
Italy's benchmark 10-year borrowing costs hit 6.19 percent while the five year yield rose to 5.84 percent.
European shares[.FTEU3
991.62
-8.52
(-0.85%)
] fell on Thursday, led lower by weaker banking stocks and investor skepticism over concrete results emerging from the EU summit.
-8.52
(-0.85%)
] fell on Thursday, led lower by weaker banking stocks and investor skepticism over concrete results emerging from the EU summit.
Economic
data released on Thursday includes initial jobless claims for the week
ending June 23 at 8:30 a.m.in New York, with analysts telling the
website briefing.com they expected a slight drop in claims from the
prior week’s 387,000 to 385,000.
The
third and final reading of U.S. gross domestic product growth for the
first quarter is also published at 8:30 a.m. analysts telling
briefing.com they expected to see no change in the previous estimate’s
growth figure of 1.9 percent.
Family Dollar [FDD
10.84
-0.0232
(-0.21%)
] is among the companies releasing earnings ahead of the open along with American Greetings [AM
14.26
-0.05
(-0.35%)
] and Schnitzer Steel. [SCHN
24.89
0.36
(+1.47%)
] After the close there are quarterly reports from beleaguered BlackBerry maker Research In Motion [RIMM
9.18
0.215
(+2.4%)
] and Nike.[NKE
98.11
-0.34
(-0.35%)
] Consulting firm Accenture [ACN
55.87
-0.58
(-1.03%)
] is also scheduled to report after the bell.
-0.0232
(-0.21%)
] is among the companies releasing earnings ahead of the open along with American Greetings [AM
14.26
-0.05
(-0.35%)
] and Schnitzer Steel. [SCHN
24.89
0.36
(+1.47%)
] After the close there are quarterly reports from beleaguered BlackBerry maker Research In Motion [RIMM
9.18
0.215
(+2.4%)
] and Nike.[NKE
98.11
-0.34
(-0.35%)
] Consulting firm Accenture [ACN
55.87
-0.58
(-1.03%)
] is also scheduled to report after the bell.
The
Supreme Court will publish its ruling on whether President Obama’s
health care reforms, or parts or them, are unconstitutional. The
multifaceted ruling is expected at about 10:00am in New York.
Losses from JPMorgan’s [JPM
36.78
1.07
(+3%)
]
derivatives trades may reach as high as $9 billion, compared to initial
estimates of about $2 billion according to a report in the New York
Times on Thursday.
1.07
(+3%)
]
derivatives trades may reach as high as $9 billion, compared to initial
estimates of about $2 billion according to a report in the New York
Times on Thursday.
Separately, Citi analysts have cut second quarter earnings estimates and price targets for JPMorgan, Bank of America,[BAC
7.77
0.155
(+2.04%)
] Goldman Sachs,[GS
93.27
2.24
(+2.46%)
] and Morgan Stanley.[MS
13.91
0.40
(+2.96%)
]
0.155
(+2.04%)
] Goldman Sachs,[GS
93.27
2.24
(+2.46%)
] and Morgan Stanley.[MS
13.91
0.40
(+2.96%)
]
Union leaders at American Airlines parent AMR [AAMRQ
0.55
---
UNCH
]
will let pilots vote on a company proposal to slash spending on labor,
avoiding a bankruptcy judge ruling that could have imposed even tougher
terms on the pilots.
]
will let pilots vote on a company proposal to slash spending on labor,
avoiding a bankruptcy judge ruling that could have imposed even tougher
terms on the pilots.
And News Corp’s [NWSA
22.31
0.55
(+2.53%)
]
board is expected to formally announce it has approved a split of the
company in two, separating out the film and TV businesses.
0.55
(+2.53%)
]
board is expected to formally announce it has approved a split of the
company in two, separating out the film and TV businesses.
Chairman and chief executive of the company Rupert Murdoch will appear on CNBC at 12:00 p.m. in New York.
© 2012 CNBC.com
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