U.S. stock futures swiftly decline after U.S. third-quarter growth was reported to have been revised lower.
NEW YORK (TheStreet) -- U.S. stock futures swiftly declined after U.S. third-quarter growth was revised lower.
Futures for the Dow Jones Industrial Average were falling 29 points, or 22 points below fair value, at 11,496. Futures for the S&P 500 were down 4 points, or 4 points below fair value at 1187, and futures for the tech-heavy Nasdaq were down 17 points, or 14 points below fair value, at 2197.
The Bureau of Economic Analysis said its second estimate of U.S. third-quarter gross domestic product growth came in at 2%, down from the prior estimate of 2.5% growth. A poll of economists by Reuters expected a 2.5% annualized growth rate.
Ratings agencies Standard & Poor's and Moody's reaffirmed their views on U.S. creditworthiness despite the failure of the congressional super committee to reach a debt reduction deal.
S&P maintains its AA+ rating for U.S. long-term debt with negative outlook, after downgrading the country from the pristine AAA rating on Aug. 5, and Moody's said its AAA rating with a negative outlook remains unchanged. Fitch Ratings will finalize its U.S. credit rating review by the end of this month.
This, despite the failure of a special congressional committee to reach an agreement to reduce the U.S. deficit by $1.2 trillion over a decade. This will likely trigger automatic spending cuts split evenly between defense and domestic spending.
London's FTSE was rising 0.7%, and Germany's DAX was advancing 0.8%. Overnight, Asian stocks closed mixed. Japan's Nikkei Average was down 0.4%, and Hong Kong's Hang Seng was up 0.14%.
Stocks closed down sharply on Monday as political gridlock on U.S. deficit cuts raised a new set of concerns for Wall Street.
Minutes of the Federal Open Market Committee's meeting on Nov. 2 on the benchmark interest rate will be released at 2 p.m. The markets will parse the minutes for signs of discussions on more quantitative easing.
In corporate news, Hewlett-Packard(:HPQ), the computer and printer maker, said adjusted earnings per share fell 12% from last year to $1.17 per share. Adjusted net revenue for the quarter ended in October dropped 3% to $32.30 billion. Analysts were expecting profit of $1.13 a share on sales of $32 billion. Shares were falling 1.5% in premarket trading Tuesday.
Hormel Foods(:HRL) said fiscal fourth-quarter profit fell 3%.The maker of Spam said net income fell to $117.3 million, or 43 cents a share, from $121.1 million, or 45 cents, last year. Analysts were expecting a profit of 42 cents a share.
Networking equipment company Brocade Communications(:BRCD) blew past Wall Street's expectations in its fiscal fourth quarter, reporting adjusted earnings of $79 million, or 16 cents a share. Revenue was $550 million, up 9% on a sequential basis but virtually flat from last year. Analysts were calling for a profit of 10 cents a share in the latest quarter on revenue of $527.4 million. Shares were gaining 4.9%.
Online movie rental company Netflix(:NFLX) says it's raising an additional $200 million in capital through the sale of zero coupon convertible notes. Technology Crossover Ventures will be buying the notes, and has the right to nominate one person Netflix's board. Shares were tumbling 5.7% in premarket trading.
The December gold contract was up $17.60 to $1,696 an ounce. January crude oil futures were rising $1.44 to $98.36 a barrel.
The U.S. dollar was falling against a basket of currencies, with the U.S. dollar index down 0.3%. The ten-year Treasury was down 7/32, raising the yield to 1.977%.
-- Written by Andrea Tse in New York.
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