Stock index futures pointed to a lower open on Tuesday on concerns about the state of corporate profits after several major U.S. companies reported disappointing quarterly results and even cloudier outlooks.
Chemical maker DuPont Co
Bank of New York Mellon Corp
We weren't expecting a great earnings period, and expectations had come down considerably, but I guess you could say not enough, said Todd Leone, head of listed trading at Cowen & Co in New York.
But for the most part we had such a tremendous move to the upside for six weeks, they had to come in very good for them to keep moving higher.
S&P 500 futures dropped 7.30 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 slid 71 points, and Nasdaq 100 futures fell 7 points.
U.S. stocks had risen for six consecutive weeks, the longest for the S&P 500 since 2007, with the Dow scoring its biggest percentage gain since 1938.
Drugmaker Merck & Co Inc
Diversified U.S. manufacturer United Technologies Corp
Soft drink maker Coca-Cola Co
At the close of trading on Friday, the blended growth rate for the first quarter, which combines actual numbers for companies that have reported earnings and estimates for companies that have yet to report, stood at negative 37.4 percent, according to Thomson Reuters data.
Shares of General Motors Corp
On the merger front, chipmaker Broadcom Corp
Broadcom shares slid 8.9 percent to $19.85, while Emulex surged 45 percent to $9.61.
Stocks slid more than 3 percent on Monday after weak results from Bank of America Corp
(Reporting by Chuck Mikolajczak; Editing by Theodore d'Afflisio and Jeffrey Benkoe)