Stock futures slide after weak Chinese data
NEW YORK (AP) — U.S. stock futures are trading lower on Monday after a report showed that Chinese manufacturing contracted for the fourth straight month in April.
KEEPING SCORE: Dow Jones industrial average futures fell 68 points to 16,379 as of 9:05 a.m. Eastern time. Standard & Poor's 500 index futures dropped seven points to 1,866 and Nasdaq futures are down 17 points, or 0.5 percent, to 3,562.
CHINA SLOWDOWN: China's manufacturing contracted in April, but the pace of decline was less severe, suggesting the downturn in the world's No. 2 economy is bottoming out. HSBC's purchasing managers' index released Monday ticked up to 48.1 from 48.0 in March on a 100-point scale on which numbers above 50 indicate expansion.
WEAK DRUGS: Pfizer fell 44 cents, or 1.4 percent, to $30.31 in premarket trading after the drug company said Monday that its first-quarter profit dropped 15 percent despite sharp cost cutting. The earnings decline reflected cheaper generic competition that continues to reduce sales of its multiple medicines and the end of some partnerships with other drugmakers. Pfizer has also been trying since January to get British rival AstraZeneca Plc to discuss its bid to buy the company, but AstraZeneca continues to rebuff Pfizer.
TREASURIES AND BONDS: The yield on the 10-year Treasury note fell to 2.58 percent from 2.59 percent on Friday. The yield matching is its lowest of the year and has fallen from 3 percent at the start of January. The price of oil rose 47 cents, or 0.5 percent, to $100.25.