Stock Futures Slide as FTC Blocks Staples-Office Depot Deal

New York (May 11) Stock futures were slightly lower on Wednesday, pulling back after a rally a day earlier, as the failed merger between Staples (SPLS - Get Report) and Office Depot (ODP - Get Report) dominated business headlines.

S&P 500 futures were down 0.2%, Dow Jones Industrial Average futures fell 0.26%, and Nasdaq futures slid 0.2%.

Staples and Office Depot were both under pressure on Wednesday morning after a federal judge blocked the planned $6.3 billion merger between the two office-stationery companies. The Federal Trade Commission found that there was "reasonable probability that the proposed merger will substantially impair competition." Staples shares slid 15%, while Office Depot plummeted 27%.

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Canada's oil industry was beginning to recover from a massive wildfire that had impacted operations in the Alberta region. Royal Dutch Shell RDS.A has resumed production at its Albian mine, while other oil sand companies near Fort McMurray are beginning to come back online. The ongoing blaze has caused erratic swings in the price of West Texas Intermediate. Crude was up 0.4% to $44.83 a barrel on Wednesday morning.

Walt Disney (DIS - Get Report) fell 5% following a disappointing second quarter. The world's largest entertainment company reported earnings of $1.36 a share, 3 cents below estimates, while sales of $13 billion missed forecasts by $200 million. Expectations were high heading into the earnings report after the box office success of Star Wars: The Force Awakens and Zootopia.

Fossil Group (FOSL - Get Report) tumbled 32% in premarket trading after issuing a far-weaker second quarter than analysts expected. The fashion accessories brand expects current-quarter earnings breakeven to 15 cents a share, well below consensus of 58 cents. First-quarter earnings and sales also missed forecasts. 

Electronic Arts (EA - Get Report) climbed after topping estimates in its recent quarter. Adjusted earnings of 50 cents a share came in 8 cents above estimates, while revenue of $924 million exceeded expectations by $35 million. 

Source: TheStreet