Futures fall on commodities, earnings


Stocks are indicated lower as commodities fall and investors digest less-than-stellar news from Intel and Bank of America.

S&P 500 futures are down by about three-quarters of a percent, while the Nasdaq 100 is indicated to decline by a full percentage point after INTC warned that a shrinking PC market will cause revenue to fall in the second quarter. Internet giant Yahoo also disappointed.

European markets are down by more than a full percentage point, marking their fourth straight session in the red, as weak data from Germany and China fuel worries about the global economy. Asian bourses were mixed overnight.

BAC is also lower after weak mortgage lending caused first-quarter profit to miss expectations. Revenue, however, beat consensus thanks to strong investment-banking numbers. Today's other big reports include Textron this morning, plus American Express and eBay in the afternoon.

The S&P 500 has been consolidating on either side of its previous all-time high from October 2007 for the last month after beginning the year with a broad rally. The big question now facing investors is whether to trust the bullish momentum or to heed worries about weakening growth.

Concerns about the global economy have triggered major selloffs in commodities and precious metals, which continue today. Oil is down by more than 1 percent, silver fell 2 percent, and copper is lower by 3 percent.

Foreign-exchange markets are also painting a bearish picture, with the euro, Australian dollar, and Canadian dollar posting sharp losses. The Japanese yen, which tends to move in the opposite direction as stocks and commodities, is rallying across the board.

Among individual companies, INTC is down by 1 percent, YHOO fell 2 percent and BAC shed 3 percent after their respective reports. Cirrus Logic dropped 10 percent warning after issuing weak preliminary revenue for the first quarter. TXT fell 6 percent after cutting its full-year earnings guidance amid disappointing sales of business jets.

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