--Stock futures slip on back of Europe concerns
--Europe markets decline as Greece's meeting with Germany, U.K. data weigh
--Durable goods in July expected to increase 0.3%
NEW YORK--U.S. stock futures edged lower ahead of durable goods data,
with concerns about Europe's sovereign-debt situation and slowing
economy giving investors reason to move cautiously.
About 90 minutes ahead of the open, Dow Jones Industrial Average
futures slipped 11 points, or 0.1%, to 13028. The Dow fell 115 points
on Thursday to suffer a fourth-consecutive loss, the longest since the
four-session stretch ending Aug. 2.
Standard & Poor's 500-stock index futures eased two points, or 0.1%,
to 1398 and Nasdaq 100 futures gave up two points, or 0.1%, to 2759.
Changes in stock futures don't always accurately predict stock moves
after the opening bell.
Data on durable goods orders in July are due out at 8:30 a.m. EDT. The
median estimate of economists surveyed by Dow Jones Newswires is for a
monthly increase of 3% after rising 1.6% in June.
European markets slipped, with the Stoxx Europe 600 down 0.3%, with
Greece's meeting with Germany and data confirming contraction in the
U.K. economy weighing on sentiment.
German Chancellor Angela Merkel Greece said she wanted to keep Greece
in the euro zone, but she didn't commit to granting Greece more time
to implement austerity measures required for the country to receive
bailout funds.
In the U.K., second-quarter gross domestic product was revised to show
it shrank 0.5%, marking a third-consecutive quarter of contraction.
GDP was previously estimated to have declined 0.7%.
Asian markets fell sharply on the back of U.S. weakness, with China's
Shanghai Composite shedding 1% to close at a 3 1/2-year low and
Japan's Nikkei Stock Average falling 1.2%.
Crude oil futures lost 0.6% to $95.70 a barrel, while gold futures
declined 0.4% to $1,666 an ounce. The dollar gained against the euro
but lost some ground against the yen.
In corporate news, shares of Eli Lilly rallied 5% in premarket trading
after the drug maker said that although late-stage trials for its
Alzheimer's treatment didn't meet primary goals, there was some
statistically-significant improvement in some patients.
Autodesk tumbled 23% after the company, which makes 3D design
software, reported fiscal second-quarter results that fell short of
expectations as provided by FactSet, provided a downbeat outlook for
the third quarter and said it plans to reduce staff as part of
cost-cutting efforts.
Salesforce.com slid 4.6% after the business-software maker reported
fiscal second-quarter earnings that topped analyst estimates, but
provided a third-quarter and full-year outlook that was below current
projections.
Aruba Networks rallied 15% after the mobile network company reported
fiscal fourth-quarter earnings and revenue that beat estimates, citing
strong improvement in gross and operating margins.
-Write to Tomi Kilgore at tomi.kilgore@dowjones.com
HOT STOCKS TO WATCH
Among the companies with shares expected to actively trade in Friday's
session are Autodesk Inc. (ADSK), Aruba Networks Inc. (ARUN) and
Salesforce.com Inc. (CRM).
Design software maker Autodesk's fiscal second-quarter profit fell
9.3%, and the company said it plans to reduce its staff in a
restructuring effort to address a shift to cloud and mobile computing.
Revenue missed Autodesk's expectations and the company lowered its
full-year revenue guidance. Shares plunged 21% to $28.10 after hours.
Aruba Networks swung to a loss in the fiscal fourth-quarter on a
year-earlier tax benefit of $72.8 million, though the WiFi-equipment
maker posted strong revenue growth. Shares rose 15% to $19.48 after
hours as adjusted earnings and revenue exceeded expectations.
Salesforce.com posted a fiscal second-quarter loss as operating costs
and stock-based expenses jumped, although the company's top-line
growth and quarterly billings exceeded expectations. Shares slumped
5.1% to $139.30 after hours on lower guidance for per-share earnings
in the current quarter and a modest decline in the growth rate of
deferred revenue, which is a critical measure of future revenue for
its subscription-based business model.
Solera Holdings Inc.'s (SLH) fiscal fourth-quarter profit grew a
better-than-expected 21% as the auto-insurance software maker posted
stronger results from its insurance-company customers. However, shares
slid 4% to $41 after hours as the company provided downbeat guidance
for the new fiscal year.
Syneron Medical Ltd. (ELOS) said its Chief Financial Officer Asaf
Alperovitz has resigned to pursue a new career opportunity and has
appointed David Schlachet, its former chief executive, as interim CFO.
Shares slipped 3.1% to $9.50 after hours.
Watchlist:
Bebe Stores Inc.'s (BEBE) fiscal fourth-quarter earnings fell 36% as
the women's clothing retailer saw lower same-store sales weaken
revenue.
Brinker International Inc. (EAT) approved the repurchase of an
additional $500 million in stock, and boosted its dividend, as it aims
to increase shareholder returns.
Bristol-Myers Squibb Co. (BMY) said Thursday it has discontinued the
development of a drug intended to treat the liver disease hepatitis C
in the interest of patient safety, after a patient died and others
were hospitalized.
Mentor Graphics Corp.'s (MENT) fiscal second-quarter earnings more
than quadrupled as the chip-design software company reported strong
revenue gains in its system and software business.
Panera Bread Co. (PNRA) has authorized up to $600 million in share
repurchases as the bakery-cafe chain looks to increase shareholder
returns.
A QEP Resources Inc. (QEP) unit reached two agreements to acquire
oil-development properties in the Williston Basin in North Dakota from
multiple sellers in deals with a combined value of roughly $1.38
billion.
Qualcomm Inc. (QCOM) said it purchased chip maker DesignArt Networks,
giving the company new system-on-chip and mobile offerings.
Rue21 Inc.'s (RUE) fiscal second-quarter earnings rose 19% as the
value-oriented teen-apparel retailer continued to add stores and
increase revenue.
Shoe Carnival Inc.'s (SCVL) fiscal second-quarter earnings rose 5.3%
as strong sales of athletic shoes helped offset the expense of opening
new stores.
Watson Pharmaceuticals Inc. (WPI) said a subsidiary has received final
approval from the U.S. Food and Drug Administration for a generic
equivalent of Endo Health Solutions Inc.'s (ENDP) Lidoderm pain-relief
patch.
Write to Nathalie Tadena at nathalie.tadena@dowjones.com
(END) Dow Jones Newswires
August 24, 2012 06:45 ET (10:45 GMT)
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