Reuters Nasdaq futures tumble on tech, oil, Japan worries Wednesday January 18, 6:06 am ET By Mark Meadows
LONDON (Reuters) - U.S. stock futures dropped on Wednesday, indicating a sharp fall on Wall Street, after techs Intel Corp. (NasdaqNM:INTC - News) and Yahoo Inc. (NasdaqNM:YHOO - News) posted results lagging expectations while oil rose toward $67 a barrel. ADVERTISEMENT
A stampede of sell orders also forced the early shut-down of the Tokyo stock exchange, with the Nikkei (^N225 - News) slumping 3 percent, spooked further by fall-out from an investigation into Internet company Livedoor (Tokyo:4753.T - News).
Europe's FTSEurofirst 300 index (^FTEU3 - News) of leading shares slid 1.2 percent.
By 1045 GMT, Nasdaq futures (NDH6) had fallen 2 percent while Dow futures (DJH6) fell 0.8 percent. London spreadbetters were calling the Nasdaq (NasdaqSC:^IXIC - News) down around 34 points when it opens, while the Dow (^DJI - News) was seen off around 97 points.
"It's always negative if we start with some bad (U.S.) earnings surprises. The fear is we'll have a very shaky earning season and I think that's quite probable," said Thomas Radinger, a senior fund manager at Activest in Munich.
A raft of company earnings follow later on Wednesday, with Apple Computer Inc. (NasdaqNM:AAPL - News), eBay Inc. (NasdaqNM:EBAY - News) and JPMorgan Chase (NYSE:JPM - News) posting quarterly numbers.
Intel shares plunged 9 percent in extended-hours trading on Tuesday, while Yahoo fell even further on the Inet electronic system after the closing bell.
"When you have a combination of investors not being able to unwind positions in Japan and the world's biggest chipmaker (Intel) missing its forecasts, you're going to see widespread selling," said Angus Campbell at Finspreads.
"In these circumstances few investors would be willing to buy dips in the market."
The weak results knocked other U.S. tech stocks after hours with Google Inc. (NasdaqNM:GOOG - News), Dell Inc. (NasdaqNM:DELL - News), Apple and eBay all suffering.
Even International Business Machines Corp. (NYSE:IBM - News), which reported quarterly profit that rose a higher-than-expected 13 percent, was hit slightly following the closing bell.
Oil is also a factor, with light crude futures (CLc1) rising to $66.79 after Nigerian militants said they had attacked more oil facilities and threatened a wider range of targets, while there are continued worries over Iran's nuclear stance.
U.S weekly oil inventories at 1530 GMT are expected to show heating oil and other distillate supplies rose again last week while gasoline stocks are set to gain as demand remained soft. Crude stockpiles are forecast to have fallen modestly.
The fallout from the equity markets boosted the appeal of safe-haven government bonds with benchmark 10-year Treasury yields (US10YT=RR) moving to 4.314 percent, a three month low.
The yen steadied, however, after slipping in the Asian session
For sure the world markets are questionable this week but Rambus is a unique beast - similar to QCOM.....Rambus invented and owns FUNDAMENTAL IP on chip to chip communication that "all computers will work this way". When this is finalized (via industry settlements) we into triple digits fast - regardless of rest of the market...only issue is is it to $150, $200 etc.