Stock futures lower after Boeing loss

 @ibtimes
on October 21 2009 8:56 AM

Stock futures pointed to a lower open on Wednesday after Dow component Boeing reported disappointing quarterly results and on increased concern that a market pullback looms.

Boeing Co shed 2.4 percent to $50.64 in premarket trade after the airplane maker posted a net loss on charges related to its long-delayed 787 plane and the 747 program.

Morgan Stanley added 2.1 percent to $33.20 premarket after reporting a better-than-forecast profit, helped by strong fixed income sales and trading revenues.

Wells Fargo & Co said earnings rose 60 percent as mortgage banking revenue surged. Shares slipped 2 percent to $29.84.

Drugmaker Eli Lilly and Co posted better-than-expected profit, aided by higher sales of its Cymbalta anti-depressant and Alimta cancer drug, and boosted its full-year forecast. Shares advanced 2.2 percent to $36 premarket.

The market has been run up into earnings here, so it's not unlikely that we are going to see some people taking profits, and that's all it really looks like at this point, said Frank Lesh, a futures analyst and broker at FuturePath Trading LLC in Chicago.

Everybody out there thinks it's inevitable we will have some kind of correction, and you need to do that.

The S&P 500 has risen more than 61 percent since hitting 12-year lows in March as economic data has suggested the economy is recovering.

S&P 500 futures fell 4.5 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 lost 40 points, while Nasdaq futures slid 5.50 points.

Altria Group Inc posted quarterly profit that beat estimates as its share of the smokeless tobacco market stabilized, while the company saw a sharp drop in cigarette shipments. The stock dipped 1.5 percent to $18.38.

Yahoo Inc jumped 4.8 percent to $18.00 in premarket trade after the Internet media company beat profit and sales expectations, as spending by advertisers showed signs of life.

Earnings expected later today include results from eBay Inc and Amgen Inc .

Economic data includes the U.S. Federal Reserve's Beige Book on regional economic activities at 2 p.m. EDT.

(Reporting by Chuck Mikolajczak; editing by Jeffrey Benkoe)

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