US stock futures extend losses on GDP report

iStock

US stock-index futures extended losses after data showed the American economy grew slower than forecast in the second quarter.

S&P 500 Index futures fell 0.3% to 2 158.75 at 8:32 a.m. in New York. The benchmark rose amid a slew of corporate earnings yesterday, closing within about five points of a record.

Gross domestic product rose at a 1.2% annualized rate after a 0.8% advance the prior quarter, Commerce Department figures showed Friday in Washington.

The median forecast of economists surveyed by Bloomberg called for a 2.5% second-quarter increase.

The S&P 500 has climbed 3.4% in July, a fifth monthly rise, boosted by earnings reports and optimism central banks will support the global economy.

While the Federal Reserve earlier this week held its rates unchanged as forecast, the Bank of Japan on Friday damped expectations for looser policy by keeping its key monetary tools unchanged and saying it will mount a comprehensive review of its policy framework.

The GDP data comes as investors sift through one of the busiest weeks of the earnings season. Halfway through, more than 80% of the S&P 500 companies that have reported so far beat profit projections and almost 60% topped sales estimates.

Analysts have eased their expectations for a drop in second-quarter earnings to 4.5%.

Google parent Alphabet rose in premarket trading after its quarterly profit topped estimates. Amazon.com climbed after forecasting sales that may exceed analysts’ projections.

Cigna Corporation declined after the health insurer reported quarterly earnings that missed estimates and cut its full-year forecast. Exxon Mobil fell on its results.

US stocks have alternated between gains and losses since the S&P 500 reached a fourth straight record on July 14, finishing every day less than 0.5% away from the previous close.

The 10-day streak is the longest since data began in 1927. Before that, the benchmark posted seven records in 10 days.

ZAR/USD
17.04
(-0.02)
ZAR/GBP
21.28
(-0.16)
ZAR/EUR
19.23
(-0.38)
ZAR/AUD
11.86
(-0.20)
ZAR/JPY
0.16
(-0.07)
Gold
1777.17
(+0.11)
Silver
18.16
(+0.91)
Platinum
817.00
(+1.05)
Brent Crude
42.84
(0.00)
Palladium
1913.00
(+0.10)
All Share
54963.27
(+0.81)
Top 40
50591.69
(+0.82)
Financial 15
10217.40
(+0.66)
Industrial 25
76673.57
(+0.16)
Resource 10
51028.79
(+1.78)
All JSE data delayed by at least 15 minutes morningstar logo
Company Snapshot
Voting Booth
Please select an option Oops! Something went wrong, please try again later.
Results
I'm not really directly affected
18% - 1624 votes
I am taking a hit, but should be able to recover in the next year
23% - 2134 votes
My finances have been devastated
34% - 3194 votes
It's still too early to know what the full effect will be
25% - 2317 votes
Vote