Stock Futures Tumble as Crude Loses Recent Highs
New York (Mar 24) S&P 500 futures were down 0.55%, Dow Jones Industrial Average futures declined 0.46%, and Nasdaq futures slid 0.55%.
Crude oil spiraled lower on Thursday as investors continued to worry over a global supply glut. A weekly read on domestic crude oil inventories released on Wednesday showed a far steeper increase than anticipated. Oil recently hit its highest level of the year on hopes of a production freeze among major oil-producing countries, though negotiations are on pause until an April meeting. West Texas Intermediate crude oil fell 2.6% to $38.85 a barrel.
The chance of an April rate hike also was keeping investors wary after comments from St. Louis Federal Reserve President James Bullard increased the odds. Bullard said on Wednesday that the central bank should consider another hike at its April meeting as the economic forecasts appear unchanged and inflation and unemployment march toward their targets. The chances of an April rate hike climbed to 14% from 7% following Bullard's comments, according to CME's FedWatch futures.
Trading likely will be quieter on Thursday because of the shortened holiday week. Markets will be closed on Good Friday, reopening as usual on Easter Monday. Banks will remain open on Friday.
Yahoo! (YHOO - Get Report) climbed more than 1% on reports activist investor Starboard Value has called for an overhaul of the entire nine-member board, according to The Wall Street Journal. Starboard will name its suggestions for replacements on Thursday morning.
Yum! Brands (YUM - Get Report) reportedly is considering selling a share of its Chinese business as part of a plan by Yum! to spin off the business. The KFC owner could unload a stake as high as 20% which could net it $10 billion.
Accenture (ACN - Get Report) shares were on watch after the company raised its full-year earnings outlook to $5.21 to $5.32 a share, up from a previous range of $5.09 to $5.24 a share. The professional services company also beat third-quarter earnings and sales estimates.
KB Home (KBH - Get Report) climbed 4% in premarket trading after a far better-than-expected first quarter. The homebuilder earned 14 cents a share, 3 cents above estimates, while revenue surged 17% to $678.37 million.
Terex (TEX - Get Report) added 10% before the bell after construction machinery maker Zoomlion raised its offer to $31 a share, prompting a push to move forward in negotiations. Last week, Zoomlion offered Terex a deal worth more than $3.4 billion, or $30 a share in cash and $1 a share in special dividends.
Source: TheStreet
