Stock futures retreat, point to lower opening

[April 22, 2010]  NEW YORK (AP) -- Stock futures fell Thursday as Greek debt problems are again a concern for global markets.

The drop also comes ahead of a fresh round of economic reports on initial jobless claims, inflation and home sales. Dozens of big companies are also reporting quarterly results throughout the day, including Verizon Communications Inc., Microsoft Corp. and American Express Co.

Investors will be closely watching a speech in New York by President Barack Obama. He will be outlining the need for major reform of the financial industry, which has been blamed for helping push the country into recession.

Major European and Asian indexes retreated after a new report showed Greece had an even bigger budget deficit in 2009 than previously thought. The new data comes out as the debt-burdened country considers whether to tap loans from 15 other Eurozone countries and the International Monetary Fund.

Concerns about Greece's debt problems has been one of the few items that have given investors pause in recent months. Some investors are worried Greece and other European nation's debt problems will slow down a global economic recovery.

Greece's borrowing costs have jumped to record highs in recent days. some analysts believe the country could have trouble repaying debt in the coming years even if it receives a bailout to avoid default this year.

Ahead of the opening bell, Dow Jones industrial average futures fell 43, or 0.4 percent, to 11,016. Standard & Poor's 500 index futures fell 6.80, or 0.6 percent, to 1,193.60, while Nasdaq 100 index futures fell 13.50, or 0.7 percent, to 2,012.00.

Nasdaq futures are under pressure after eBay Inc.'s quarterly results disappointed investors after the market closed Wednesday. Its shares fell $2.08, or 7.9 percent, to $24.21 in pre-opening trading.

While earnings have been the focus of investors early this week, economic reports will again draw some attention Thursday.

A new Labor Department report is expected to show fewer people filed for initial jobless claims last week. Economists polled by Thomson Reuters, on average, forecast claims fell to 455,000 last week from 484,000 a week earlier.

Claims have risen for two straight weeks, worrying some economists about whether an economic rebound is truly taking hold. High unemployment remains one of the primary drags on a strong, sustained recovery.

A separate report from the Labor Department is expected to show inflation remained tame at the wholesale level. Low inflation has allowed the Federal Reserve to keep key interest rates low to help stimulate the economy.

Economists forecast the Producer Price Index rose 0.4 percent last month, but only 0.1 percent if you strip out volatile food and energy prices.

Both the jobs and inflation reports are due out at 8:30 a.m. EDT.

Sales of existing homes likely rose 5.2 percent in March, ending a string of three straight months of declines. The approaching end of government tax credits likely helped boost sales of previously occupied homes last month.

Economists predict existing home sales rose a seasonally adjusted annual rate of 5.28 million, from 5.02 million in February.

The report from the National Association of Realtors is due out at 10 a.m. EDT.

Upbeat economic reports could provide a spark for investors to start buying again. Stocks were mixed Wednesday after strong earnings from Apple Inc. and Boeing Co. couldn't lift the broader market.

Major indexes were on a nearly nonstop climb entering earnings season as investors grew confident that profit reports would show growth.

With improving earnings priced into stocks already, it is taking blowout results to help drive shares even higher. Many analysts say the market might be ready for a pullback to avoid getting overheated.

The Dow rose 8 points, but broader indexes were mixed.

Meanwhile, bond prices dipped Thursday. The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 3.76 percent from 3.74 percent late Wednesday.

The dollar rose against other major currencies, while gold and oil fell.

Overseas, Japan's Nikkei stock average fell 1.3 percent. Britain's FTSE 100 dropped 0.6 percent, Germany's DAX index fell 0.8 percent, and France's CAC-40 fell 1 percent.

[Associated Press; By STEPHEN BERNARD]

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