--Stock futures lower ahead of Europe summit
--European stocks lower; Asia markets mixed
--Weekly jobless claims, revised reading on 1Q GDP on tap
NEW YORK--Caution mounted in the market as Europe's leaders were set to discuss potential remedies for the Continent's debt issues, as U.S. stock futures slipped in advance of a weekly reading from the labor market.
Less than 90 minutes before Thursday's opening bell, Dow Jones Industrial Average futures fell 82 points to 12471. The Dow added 92 points, or 0.7%, on Wednesday as major benchmarks rose for the second day in a row.
S&P 500 index futures declined seven points, or 0.5%, to 1318, while Nasdaq-100 index futures slid 12 points, or 0.5%, to 2545.
Changes in futures don't always accurately predict early market moves after the opening bell.
Investors will be watching European leaders as they convene in Brussels for a two-day summit to discuss possible steps to address the Continent's debt issues.
European stocks were on the defensive, with banks in particular losing ground ahead of the summit. The Stoxx Europe 600 index dropped 0.6%.
Due up on the U.S. economic calendar is a weekly reading on initial claims for jobless benefits, scheduled for release at 8:30 a.m. EDT. The median estimate of economists surveyed by Dow Jones Newswires is for a slight decline to 385,000.
Also due for release at 8:30 a.m. EDT is the third reading on real gross domestic product in the first quarter, which is expected to be unchanged from last month's Commerce Department estimate for 1.9% growth. GDP is the broadest measure of all goods and services produced in an economy.
Separately, a reading on June manufacturing activity in Colorado, Kansas, Nebraska, Oklahoma, Wyoming, as well as parts of New Mexico and Missouri, is scheduled for release at 11:00 a.m. EDT. The Federal Reserve Bank of Kansas City's manufacturing composite index is expected to clock in at 9, unchanged from the prior month.
Additionally, the Supreme Court has announced it will rule on Thursday morning on the constitutionality of President Barack Obama's 2010 health-care overhaul. The central question before the court was whether Congress could require most Americans to carry health insurance or pay a penalty.
Asian stocks gave up gains to end mixed, with early gains tempered by caution ahead of the European summit. Japan's Nikkei Average rose 1.7%, while Hong Kong's Hang Seng Index 0.8%, and the China Shanghai Composite fell 1%.
Crude oil futures were flat at $80.21 a barrel, while gold futures dropped 0.6% to $1,568 a troy ounce. The U.S. dollar edged higher against the Japanese yen and fell against the euro.
In corporate news, JPMorgan Chase fell 3.6% in premarket trading after the New York Times reported that the company's losses from credit derivatives may reach $9 billion, more than four times higher than initially estimated, citing unnamed sources.
News Corp. rose 0.2% after the media conglomerate's board authorized a plan to explore the separation of its entertainment operations, which include 20th Century Fox and Fox News Channel, from its publishing assets, which include The Wall Street Journal and HarperCollins. News Corp. also owns Dow Jones Newswires.
Family Dollar Stores fell 4.4% in premarket trading after the company's quarterly results fell slightly short of analysts' expectations, and the dollar-store chain narrowed its full-year earnings guidance.
Paychex reported a 3.7% rise in quarterly earnings late Wednesday, in line with expectations, as revenue strengthened in both its payroll services and human resources segments. Shares were inactive in premarket trading.
Write to Chris Dieterich at christopher.dieterich@dowjones.com
HOT STOCKS TO WATCH
Among the companies with shares expected to actively trade in Thursday's session are Flow International Corp. (FLOW), Anthera Pharmaceuticals Inc. (ANTH) and Synergetics USA Inc. (SURG).
Flow International's fiscal fourth-quarter profit surged as the maker of industrial water-jet machines saw sales from its core business continue to grow. Shares jumped 14% to $3.33 after hours.
Anthera Pharmaceuticals said its study of a drug in development for the treatment of lupus patients failed to meet a primary goal and that it is revising its plans for a follow-up trial. Shares plummeted 53% to $1.28 in after-hours trading.
Medical-device company Synergetics said it has received clearance from the Food and Drug Administration for its VersaVIT vitrectomy system for the retinal-surgery market. Shares climbed 20% to $4.65 after hours.
Energy Transfer Partners L.P. (ETP) is offering 13.5 million common units as the pipeline operator looks to pay down debt, fund capital expenditures related to pipeline-construction projects and raise funds for general partnership purposes. Shares slipped 3.7% to $44.29 after hours.
Pacific Ethanol Inc. (PEIX) plans to offer an unspecified number of units consisting of common stock and warrants. The renewable fuels producer will use the proceeds to increase its ownership stake in New PE Holdco LLC, which owns ethanol-production facilities that are managed by Pacific Ethanol, and for general corporate purposes. Shares sank 11% to 47 cents after hours.
Splunk Inc. (SPLK) said certain stockholders are offering an unspecified number of shares of common stock. The data-analysis software company's shares were off 3.6% to $27 after hours.
Synta Pharmaceuticals Corp. (SNTA) said an interim analysis of the company's experimental treatment for nonsmall cell lung cancer found improvements in progression-free survival in its co-primary patient groups, but the company didn't present statistical analysis on the results because the data wasn't yet mature. The biopharmaceutical company noted the sample size in the study's populations are small compared to the total planned sizes and event rates haven't yet achieved maturity for meaningful significance testing. Shares were off 23% to $5.60 after hours.
USEC Inc. (USU) raised its guidance to account for its Paducah Gaseous Diffusion Plant operations staying open longer than previously expected. Shares were up 12% to 92 cents after hours.
Watchlist:
Moody's Investors Service lowered its rating on Alpha Natural Resources Inc. (ANR) two notches further into junk territory, pointing to the company's weakened operating performance due to headwinds facing the U.S. coal industry.
Moody's Investors Service lowered its credit rating of Arch Coal Inc. (ACI) one notch further into junk territory Wednesday, seeing difficulties in its power-plant coal business and softness in the market for steel-making coal.
Bazaarvoice Inc. (BV) said it plans to sell up to 1.7 million shares while stockholders will offer an additional 6.8 million shares. The proceeds will be used for general corporate purposes, including working capital.
Beacon Roofing Supply Inc. (BECN) said Chief Financial Officer David R. Grace will retire, effective Jan. 1, 2013, for health reasons.
Casella Waste Systems Inc. (CWST) swung to a fiscal fourth-quarter loss as the garbage-and-recyclables hauler posted a substantial write-down connected to its planned sale of a facility in Maine.
Fitch Ratings downgraded its issuer-default rating on First Horizon National Corp. (FHN) and put it on negative watch after the bank said it would log heavy charges for mortgage repurchases in the second quarter.
Gas Natural Inc. (EGAS) said an offering of 700,000 shares priced at $10.10 each, representing a premium of 1.8% to Wednesday's close.
Harman International Industries Inc. (HAR) has doubled its annual dividend as the maker of high-end stereo, audio and recording equipment and digital products looks to increase shareholder return.
Herman Miller Inc.'s (MLHR) fiscal fourth-quarter earnings fell 30% amid $5.4 million in restructuring and write-down expenses as the office-furniture company also reported a drop in sales and a higher-than-expected effective tax rate.
Jones Soda Co.'s (JSDA) Chief Executive William Meissner and board chairman Richard Eiswirth are stepping down, and the company's chief financial officer position will be eliminated in order to reduce costs, according to a regulatory filing Wednesday.
Omnova Solutions Inc.'s (OMN) fiscal second-quarter profit jumped 13% as the building-materials manufacturer eked out wider margins, masking a decline in revenue.
Paychex Inc. (PAYX) fiscal fourth-quarter earnings rose 3.7% as revenue from both its payroll services and human resources segments strengthened.
Progress Software Corp. (PRGS) swung to a loss in its fiscal second quarter amid charges for its restructuring efforts and weaker revenue.
RadioShack Corp.'s (RSH) Chief Merchandise Officer Scott E. Young has resigned from the company, according to a filing with the Securities and Exchange Commission Wednesday.
Tellabs Inc. (TLAB) named Daniel P. Kelly as acting president and chiefexecutive, serving in the position while Chief Executive Rob Pullen undergoes cancer treatment.
-Write to Nathalie Tadena at nathalie.tadena@dowjones.com
(END) Dow Jones Newswires
June 28, 2012 07:15 ET (11:15 GMT)
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