Wednesday July 5, 8:04 PM
Stock futures fall on N. Korea fears; GM eyed
By Vivianne Rodrigues
NEW YORK (Reuters) - U.S. stock futures fell on Wednesday, indicating a lower market opening after North Korea's test-firing of a barrage of missiles led to a rout in overseas stock markets.
Stocks fell in Asia and Europe after reports that North Korea launched at least seven missiles, including a long-range missile said to be capable of reaching Alaska. The rocket launches heightened tensions in North Asia and drew international condemnation.
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Also in the market spotlight is General Motors , as the Financial Times said Renault and Nissan Chief Executive Carlos Ghosn is set to meet his counterpart at GM later this month in Detroit.
The paper added that GM's chief financial officer, Fritz Henderson, was leading a project to examine the existing Renault-Nissan alliance to assess the potential benefits for GM if it joined. A spokeswoman for Renault had no comment on the report.
U.S. markets are resuming trading on Wednesday after a halt on Tuesday in observance of the Independence Day Holiday, which may increase volatility this morning, analysts said.
"We may have a volatile trading session, with trading desks coming back to work and with worries about North Korea weighing on stocks," said Peter Cardillo, chief market analyst at S.W. Bach & Co. in New York.
S&P 500 futures SPc1> fell 5.2 points, 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> slid 44 points and Nasdaq 100 NDc1> futures were down 8.50 points.
On the U.S. economic indicator front, monthly factory orders and revised data on durable goods orders are due at 10 a.m. (1400 GMT).
Bearing also on the market is anticipation of Friday's June non-farm payrolls data report, which are forecast to show 155,000 jobs were added, according to economists polled by Reuters.
Average hourly earnings are forecast to have risen 0.3 percent, the Reuters poll showed. The unemployment rate was seen steady at 4.6 percent.
On the corporate front, Citigroup raised its rating on McGraw-Hill Cos. Inc. to "buy," MarketWatch reported on its Web site on Wednesday. Shares of the company closed at $50.32 on Monday on the New York Stock Exchange.
Jefferies & Co. lowered its rating on chip supplier Atheros Communications Inc. to "hold" and cut its price target to $20 from $30, MarketWatch reported on its Web site Wednesday.
Stock markets were flat last month, with the three major U.S. stock indexes finishing June about where they started it.