US pre-open: Futures point lower ahead of GDP
30 Jul 2010
US futures are pointing lower as investors remain cautious ahead of key GDP figures due out before the opening bell.
Federal Reserve Bank of St Louis President James Bullard worries that America may suffer a similar fate as Japan, with prices and investment falling.
"The US is closer to a Japanese-style outcome today than at any time in recent history," he warned in a research paper yesterday. Economists reckon the US grew 2.5% in the second quarter compared with 2.7% in the first three months of 2010.
Across the markets, the Dow is seen 35 points lower, while the Nasdaq is due to drop 6 points. The S&P 500 is to fall 5 points.
Walt Disney could be in focus after announcing it will sell Miramax Films to a consortium of investors for more than $660m after a six-months search to find a buyer.
"Our current strategy for the Walt Disney Studios is to focus on the development of great motion pictures under the Disney, Pixar and Marvel brands," said Disney chief executive Robert Iger.
Drug giant Merck saw second-quarter net income drop 52% to $752.4m on acquisition and restructuring charges.
Oil major Chevron and Public Service Enterprise will also update the market later today.
