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.