US STOCKS-Futures drop on gloomy company outlooks
* Techs set to drag after RIM slashes outlook
* Freeport-McMoRan suspends dividend, cuts output
* Caution before data on hiring, services sector
* For up-to-the-minute market news, please click on [STXNEWS/US]
By Ellis Mnyandu
NEW YORK, Dec 3 (Reuters) - U.S. stock index futures fell on Wednesday after Research In Motion Ltd (RIM.TO)(RIMM.O) , a technology bellwether, slashed its outlook, compounding investors' fears about the deepening economic slump.
Adding to the gloom, Freeport-McMoRan Copper & Gold Inc (FCX.N) suspended its dividend payouts, cut its 2009 capital expenditure budget and slashed its copper output. For details, see [ID:nN03310672]
Caution hung over the market before data that may show further deterioration in the labor market and shrinking in the vast services sector.
A leading consumer research firm forecast 2008 holiday retail sales to fall 3.5 percent from last year in what would be the first decline in U.S. holiday sales in nearly 25 years.
Research In Motion shares fell more than 13 percent to $32.20 before the bell, a drop that also cast a pall on the shares of other techs, including Apple Inc (AAPL.O) whose stock fell nearly 4 percent at $88.88.
"Economic concerns and some pretty negative corporate pre-announcements are weighing on the market this morning," said Peter Cardillo, chief market economist at Avalon Partners in New York.
S&P 500 futures SPc1 were 8.50 points lower 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 dropped 82 points, and Nasdaq 100 NDc1 futures shed 15.50 points.
Shares of Freeport-McMoran declined 9.4 percent to $19.76 before the bell.
The data will include ADP Employer Services' survey on November private employers' hiring, due at 8:15 (1315 GMT). Data on third-quarter productivity and costs is due at 8:30 a.m. (1330 GMT), while a gauge of service sector activity by the Institute for Supply Management is set for 10 a.m. (1500 GMT).
In a surprise late on Tuesday, Research In Motion cut its third-quarter profit and revenue outlook well below Wall Street's estimates, reflecting slowing subscriber growth, slumping margin and sharp currency swings.
The news from the mining company offered investors another stark sign that the global economy is fast deteriorating. .
Even so, investors took some comfort from a report that showed U.S. mortgage applications surged by the largest amount on record last week. "One small bright spot was the news on mortgage applications," Avalon's Cardillo said.
Stocks rose on Tuesday, led by a rebound in financials, after General Electric <GE.N vowed to leave its dividend intact despite a fragile economy. The bounce, though, still left the S&P 500 perched not far from 11-year lows hit last month. (Editing by Kenneth Barry)
