Futures fall after Exxon, GDP miss forecasts
Futures fall, despite record-high profit from Exxon Mobil and doubling of GDP. Jobless claims surge.
NEW YORK†(CNNMoney.com) -- Stock futures fell on Thursday, after oil giant Exxon Mobil reported record profits and the GDP doubled, but still fell short of expectations, and jobless claims surged.
Less than one hour hour before the market open, Nasdaq and S&P futures were down, falling from earlier gains and and suggesting a negative start for Wall Street.
Exxon Mobil (XOM, Fortune 500), the world's largest publicly traded company, reported a quarterly profit of $11.68 billion, the largest in U.S. history. Nonetheless, Exxon still fell short of analyst forecasts.
The gross domestic product, a broad measure of the nation's economic activity, rose at the annual rate of 1.9% for the second quarter, up from a revised growth rate of 0.9% in the first quarter. But e
Also, the Commerce Department reported 448,000 jobless claims in the week ended July 26. This is up from the previous week's tally of 404,000 claims, and beats projections of 395,000 claims from a consensus of analysts.
Oil prices: The price of crude gave back some of its gains after surging more than $4 in the previous session. U.S. crude for September delivery was trading down 22 cents at $126.55 a barrel in electronic trading.
The front-month contract has fallen steeply over the past few weeks but rebounded Wednesday after a report showed U.S. stockpiles of gasoline unexpectedly fell in the latest week.
Profits at oil firms have climbed, boosted by the high price of oil. Royal Dutch Shell (RDS.A) posted on Thursday a record quarterly profit of $11.6 billion.
Starbucks: Coffee retailer Starbucks (SBUX, Fortune 500) could also move. The company posted a quarterly loss late Wednesday, but shares rose in after-hours trading after it said it expects its turnaround efforts to start paying off down the road.
Visa: Shares of credit card company Visa (V) may also be active. The company reported a sharp jump in profits as consumers, particularly those outside the U.S., relied more on credit and debit cards instead of cash.
Autos: Japanese automaker Nissan (NSANY)said that it would buy out about 6,000 workers at two plants in Tennessee to cope with lower sales of trucks and sport utility vehicles.
Automakers, which are due to report July U.S. sales Friday, have been searching for ways to cut costs and boost sales in a market where consumers increasingly demand fuel economy over style or power.
Privately-held Chrysler has been discussing overseas partnerships, which include bringing Jeeps to India, leasing a U.S. plant to Italy's Fiat, and building trucks for Nissan, according to a Wall Street Journal report.