Stock index futures fell on Wednesday after the Chief Executive of Wal-Mart Stores Inc said he sees no quick end to the recession, while Intel said uncertainty ruled out a clear revenue forecast.
Wal-Mart stores fell nearly 1 percent to $50.70, while Intel shed 4.12 percent to $15.36 in premarket trade despite beating quarterly expectation.
The head of Wal-Mart Stores Inc said on Wednesday there remained a lot of stress in the economy and he did not anticipate a quick end to the recession.
I think he's right. I think this is going to be a long drawn out recession ... and we're not through it yet, said Warren Simpson, managing director at Stephens Capital Management in Little Rock, in reference to comments from Wal-Mart
On the economic front manufacturing activity in New York State contracted less severely in April after tumbling to a record low in March, the New York Federal Reserve said in a report on Wednesday.
Also, U.S. consumer prices fell unexpectedly in March and recorded their first annual drop since 1955, government data showed on Wednesday, as slumping demand pushed down energy and food costs.
S&P 500 futures fell 4.8 points and were below fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures fell 40 points, and Nasdaq 100 futures lost 11.50 points.
U.S. stocks enjoyed a five week rally to last Friday which pushed the S&P 500 up 24 percent from a bear market closing low on March 9, mainly on optimism about the economy. The index is down almost 7 percent on the year.
(Additional reporting by Charles Mikolajczak)
(Reporting by Edward Krudy, ; Editing by Theodore d'Afflisio)