Stock Futures Drop Amid Economic Worries Worldwide. Stocks to Watch: TIVO, P, YMI, AAPL, NFLX, F, BAC
Investors are worried worldwide as world stock futures fall to their lowest in six weeks. Economic data streaming in on Wednesday painted a less than pretty picture of a contracting economy in Germany, China and the United States. The contagion in Europe continues to dominate with the inability of U/S. lawmakers to get anything done in a timely fashion.
Futures on the Dow Jones Industrial Average fell 89 points to 11,358, while those on the S&P 500 stock index fell 10.4 points to 1,172.40. Nasdaq 100 futures dropped 17 points to 2,197.2. Trading on Wednesday before Thanksgiving may be thin due to the holiday.
On Tuesday, the Dow Jones Industrial Average closed 53.59 points on Wednesday at 11,493.71, with 22 of 30 components ending the day in the red. The S&P 500 Index dropped 4.94 points to 1,188.04 while the Nasdaq Composite lost 1.86 points to finish at 2,521.28.
On the world-front, China’s November factory activity shrank at its sharpest pace in 32 months, reviving fears of an abrupt slowdown for the world’s second largest economy.
Germany’s debt auction on Wednesday was technically uncovered, sending the yields on 10-year German Bunds 5.5 basis points higher to 1.964%, still lower than inflation.
And, in what has become the norm, the euro zone’s sovereign debt crisis is eating into business and consumer confidence leaving investors with ever decreasing options.Worries about France facing even more of a fiscal burden comes as the euro drops down 0.9% at $1.3388. France, Belgium, Luxembourg were in talks on how to how to provide temporary state debt guarantees for failed financial group Dexia.
The dollar, which has been benefiting from recent investor unease, rose 0.7 percent against a basket of major currencies to hit its highest in six weeks.
World stocks measured by the MSCI All-Country World Index fell 0.7 percent to their lowest level since Oct. 10.
Europe’s FTSEurofirst 300 slipped 0.5%, while Japan’s Nikkei average eased 0.4%.
Brent crude dropped 1.1% to trade below $108 a barrel, while copper prices slipped 1.4% to above $7,200 a ton.
Gold eased 0.7% after rising 1.1% the previous session. The precious metal has risen nearly 20% this year, on track for its 11th straight year of gains.
Stocks to watch today include TiVo Inc. (NASDAQ:TIVO), Pandora Media Inc. (NYSE:P), YM BioSciences Inc. (NYSEAMEX:YMI), Apple Inc. (NASDAQ:AAPL), Netflix, Inc. (NASDAQ:NFLX), Ford Motor Company (NYSE:F) and Bank of America Corp (NYSE:BAC)
TiVo Inc. (NASDAQ:TIVO) is up 3.45% at $9.90 in pre-market trading today. TIVO trades on average 2.28 million shares a day. TIVO is up this morning after releasing their third quarter results after-market yesterday. Revenue for the company rose 27% to $64.8 million and gave the company a $0.21 loss. This was lower than the expected $0.23 loss. For the current quarter, TIVO is expecting revenue to decline slightly to around $48 to $50 million. The company has a current market cap of 1.15 billion.
Pandora Media Inc. (NYSE:P) is down 5.06% in pre-market trading at $11.25. Pandora looks like its going to open lower as the sell off continues from its quarter results it issued yesterday. The stock trades on average 545 thousand shares daily. The company has a current market cap of 1.91 billion.
YM BioSciences Inc. (NYSEAMEX:YMI) is down 1.48% at $1.33 in pre-market trading. YMI has fallen nearly $0.50 in the past few days. The stock trades on average 1.14 million shares daily. The company has a current market cap of 157.56 million.
Apple Inc. (NASDAQ:AAPL) is down about 1% at $373.50 in pre-market trading. AAPL closed the day higher yesterday after being in a bit of a downtrend over the past month. The stock trades on average 18.11 million shares a day. The company has a current market cap of 349.93 billion.
Netflix, Inc. (NASDAQ:NFLX) is down 1.14% at $69.31 in pre-market trading. NFLX has steadily went down since trading at nearly $300 during the summer. The stock trades around 9.10 million shares daily. NFLX’s most recent drop is attributed to the company diluting their shares. The company has a current market cap of 3.7 billion.
Ford Motor Company (NYSE:F) is down 1.19% at $9.97 in pre-market trading. F closed the day higher yesterday, but has been selling off for about a month now and was trading over $12 back in October. The stock is less than a dollar away from hitting a new 52-week low. F on average trades 64.57 million shares. The company has a current market cap of 38.34 billion.
Bank of America Corp. (NYSE:BAC) is down 1.68% at $5.29 in pre-market trading. BAC has traded 1.43 million shares so far today and trades on average 264.28 million shares daily. BAC is trading very close to its 52-week low of $5.13. The company has a current market cap of 54.43 billion.