NEW YORK (AP) â€” US stock futures are heading lower after the government released two weak economic reports. Shares in Monsanto jumped after the company posted quarterly earnings that topped estimates and disclosed a big share buyback plan.
KEEPING SCORE: Dow Jones industrial average futures are down 35 points to 16,717 a half hour before the start of regular trading. Standard & Poor’s 500 index futures are down four points to 1,939, while Nasdaq 100 futures are down seven points to 3,788.
ECONOMICS: In a revised estimate, the Commerce Department said the U.S. economy shrank at annual rate of 2.9 percent in the first three months of the year. But two-thirds of the downward revision reflected a decline in health care spending. In a separate report, it said orders for U.S. long-lasting goods sank 1 percent in May as demand for military equipment fell sharply.
SEEDS: Monsanto said Wednesday that its earnings fell more than 5 percent in its fiscal third quarter but the overall results beat analysts’ estimates. The company, which sells corn and soybean seeds, also announced plans to spend up to $10 billion on buying its own shares. Monsanto rose $6.12, or 5 percent, to $126.75 in premarket trading.
EUROPE: France’s CAC 40 fell 1.1 percent, while Germany’s DAX dropped 0.7 percent. The FTSE 100 index of leading British companies lost 0.9 percent.
BONDS AND COMMODITIES: In government bond trading, prices rose. The yield on the 10-year note, which falls when prices rise, dropped to 2.54 percent from 2.58 percent late Tuesday. Crude oil rose 41 cents to $106.46 a barrel.