US STOCKS-Futures fall as Wal-Mart fans spending gloom
* Wal-Mart sees Q4 profit shortfall, stock drops 4 pct
* Obama to speak on the economy at 11 a.m. (1600 GMT)
* Weekly jobless claims on tap
* For up-to-the-minute market news, click [STXNEWS/US]
By Ellis Mnyandu
NEW YORK, Jan 8 (Reuters) - U.S. stock index futures fell on Thursday after Wal-Mart Stores Inc (WMT.N) posted disappointing December sales and forecast a fourth-quarter profit shortfall, compounding investors' worries about the deepening recession.
Shares of Dow component Wal-Mart slid 6.5 percent to $51.93 before the bell. For details see [ID:nWNAB7881].
The news from the world's largest retailer pointed to further contraction in consumer spending since analysts had hoped cut-price retailers like Wal-Mart would fare better as cash-strapped consumers seek to stretch their dollars amid rising unemployment.
"We are in a situation where the market is looking for something that says the end of the recession is near," said Andre Bakhos, president of Princeton Financial Group in New Brunswick, New Jersey, adding:
"The market could see some sideways consolidation, creating a pause ahead of tomorrow's December non-farm payrolls."
S&P 500 futures SPc1 shed 10.50 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 fell 104 points while Nasdaq 100 NDc1 futures fell 6 points.
Limited Brands (LTD.N) was another disappointment. The parent of lingerie chain Victoria's Secret posted a sharper-than-expected 10 percent slide in December same-store sales and forecast fourth-quarter profit below analysts' estimates.
On the economic front, investors await the release of a government report on weekly jobless claims, due at 8:30 a.m. (1330 GMT). Additionally, President-elect Barack Obama, planning a massive infrastructure spending boost and tax cuts to revive growth, is due to speak on the economy at 11 a.m. (1600 GMT). (Reporting by Ellis Mnyandu; Editing by James Dalgleish)
