Tuesday, September 13, 2011

U.S. stock Futures drop sept 13 2011

U.S. stock Futures drop sept 13 2011 : U.S. stock-index futures dropped amid mounting speculation that European leaders are failing to contain the region’s debt crisis.

Futures on the Standard & Poor’s 500 Index expiring in December slid 1.3 percent to 1,142.6 at 8:42 a.m. in London. Dow Jones Industrial Average futures lost 126 points, or 1.2 percent, to 10,863.

The S&P 500 has fallen for all but one of the past seven weeks as economic data from the U.S. and Europe trailed forecasts and S&P downgraded America’s AAA sovereign-debt rating, citing political failure to reduce record deficits. The losses dragged the gauge’s valuation to 11.2 times estimated profits last month, the cheapest since March 2009, according to data compiled by Bloomberg.

“The norm these days is the uncertainty and angst that comes with the unresolved problems of Europe’s debt crisis,” said Larry Hatheway, the head of macro strategy at UBS AG in London. “Policy appears to be impotent.”

Futures extended declines after the Wall Street Journal reported that BNP Paribas SA doesn’t have access to U.S. money- market funds anymore, citing an unidentified executive. source Bloomberg.com
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