US STOCKS-Futures lower as credit downgrade fears linger

Tue Aug 2, 2011 6:48am EDT



 * Debt deal not seen as averting credit downgrade
 * Euro-zone sovereign debt woes back in focus
 * Futures down: Dow 30 pts, S&P 4.8 pts, Nasdaq 9 pts
 * For up-to-the-minute market news see [STXNEWS/US]
 By Ryan Vlastelica
 NEW YORK, Aug 2 (Reuters) - Wall Street equity futures were
lower on Tuesday as a last-minute congressional deal to raise
the U.S. debt ceiling failed to assuage investor concerns that
a credit downgrade could be avoided.
 * Concerns about the nation's fiscal situation have
pressured equities recently, with the S&P falling for a sixth
straight day on Monday, a decline that followed its worst week
in a year last week.
 * While the congressional deal, which includes spending
cuts of $2.4 trillion over 10 years, was seen as averting an
unprecedented default, many investors fear it doesn't go far
enough to satisfy rating agencies. A downgrade is expected to
increase Treasury rates, raising the nation's borrowing costs.
 * The Senate is due  to vote on the deal at noon (1600 GMT)
after passing the Republican-led House of Representatives on
Monday. For details, see [ID:nN1E770248]
 * Overseas debt issues also returned to the forefront after
French bank BNP Paribas (BNPP.PA) unveiled a $768.3 million
writedown linked to Greece's woes. Europe's FTSEurofirst 300
.FTEU3 index of top shares fell 0.8 percent.
 * S&P 500 futures SPc1 fell 4.8 points and were below
fair value, a formula that evaluates pricing by taking into
account interest rates, dividends and time to expiration on the
contract. Dow Jones industrial average futures DJc1 lost 30
points and Nasdaq 100 futures NDc1 slid 9 points.
 * Companies due to report results on Tuesday include Pfizer
(PFE.N), CBS Corp (CBS.N), Duke Energy Corp (DUK.N), Marathon
Oil Corp (MRO.N), Molson Coors Brewing (TAPa.N) and Tenet
Healthcare (THC.N). Economic indicators include July auto sales
and personal income and consumption data for June.
 * Pfizer, a Dow component, is seen reporting lower earnings
as competition from generic copies of its Lipitor cholesterol
fighter hurt results. However, investors are expected to focus
on what the pharmaceutical giant plans to do after Lipitor
faces U.S. generics in November. [ID:nN1E770204]
 * MetroPCS Communications Inc PCS.N posted quarterly
profit Tuesday that fell short of analysts' estimates as it
added fewer customers than expected. [ID:nL3E7J21XT]
 * Overseas, Toyota Motor Corp (TM.N) (7203.T) raised its
full-year profit outlook, though to a level that was still
below expectations, warning the stronger yen was hobbling it in
the battle against South Korean rivals as it races to restore
quake-hit production. [ID:nL3E7J109Y]
 * A senior executive at Sony Corp (SNE.N) (6758.T) said the
company would pull together plans this month to restructure its
loss-making television unit. [ID:nL3E7J1379]
 * U.S. stocks fell on Monday, with the S&P down for a sixth
straight day, though the market pared losses late in the day.
 ( Editing by W Simon )


FILED UNDER: