MW: U.S. stock futures trade lower after CPI, housing data
By Steve Goldstein, MarketWatch
LONDON (MarketWatch) - U.S. stock futures headed back in a down direction Wednesday, with data showing the biggest-ever drop in consumer prices and slumping housing starts.
S&P 500 futures fell 13.2 points to 853.30 and Nasdaq 100 futures lost 18.75 points to 1,155.25. Dow industrial futures fell 133 points.
The declines came as consumer prices fell a record 1% in October, as energy prices fell a record 8.6%. The core consumer price index fell 0.1%, the first fall in the core rate since 1982.
Housing starts fell to a record low in October, a fall of 4.5%, driving new construction to its lowest level since just after World War II.
Weekly energy inventory data also is due. Ahead of the energy data, oil futures fell 35 cents to $54.41 a barrel.
At 2 p.m., the Fed will release the minutes from its last meeting in which it cut rates by a half percentage point. Futures are pricing in another 50 point cut in December.
Fed Vice Chairman Donald Kohn and Richmond Fed President Jeffrey Lacker, who gets to vote on rate decisions next year, also are due to deliver speeches.
In the U.K., a one-and-a-half percentage point cut was unanimously approved, minutes released Wednesday by the Bank of England showed.
On the company front, BJ's Wholesale Club lifted its earnings guidance, showing how companies catering to low-price customers can benefit from the current environment.
But other companies weren't doing as well. BASF, the world's largest chemicals firm, cut its earnings outlook and said it will lay off 20,000 workers. KLA-Tencor also announced job cuts.
Solar products maker SolarWorld made a bid for four plants by General Motors unit Opel.
The Nikkei 225 dropped 0.7% in Tokyo while the German DAX 30 fell 3%
Crude oil futures eased 44 cents to $53.95 a barrel and the dollar held to a tight range vs. rivals.
U.S. stocks ended higher on Tuesday, thanks to upbeat results from Hewlett-Packard and better-than-forecast results out of Home Depot. The day also featured executives at U.S. automakers asking for Congressional aid and Treasury Secretary Henry Paulson saying he want to leave the remaining money under the Troubled Asset Relief Program for the new administration.
The Dow Jones Industrial Average rose 151 points, the Nasdaq Composite added a point and the S&P 500 rose 8 points.
