June 15 (Bloomberg) -- U.S. stock futures extended losses after a report showed New York-area manufacturing unexpectedly contracted, adding to evidence economic growth is slowing.
Futures on the Standard & Poor’s 500 Index fell 1 percent to 1,272.30 at 8:32 in New York. Dow Jones Industrial Average futures dropped 0.9 percent to 11,909.
The Federal Reserve Bank of New York’s general economic index dropped to minus 7.8, the lowest level since November, from 11.9 in May. The median forecast in a Bloomberg News survey
of economists was 12. Readings greater than zero signal expansion in the so-called Empire State Index, which covers New York, northern New Jersey and southern Connecticut.
The consumer-price index increased 0.2 percent, compared with the 0.1 percent median forecast of economists surveyed by Bloomberg News, figures from the Labor Department showed today in Washington. The so-called core measure, which excludes more volatile food and energy costs, climbed 0.3 percent, the biggest
increase since July 2008.
The S&P 500 yesterday advanced the most since April 20 after better-than-estimated data on American retail sales and Chinese industrial production. The S&P 500 and Dow average had fallen for six weeks, their longest losing streaks since 2008 and 2002, respectively, as reports on jobs and manufacturing spurred concern that the economic recovery was slowing.
The S&P 500 has still rallied 90 percent from its low in March 2009, as the Federal Reserve used large-scale asset purchases to buoy the economy and companies posted earnings that beat analysts’ estimates.
U.S. futures followed European stocks lower earlier as leaders couldn’t come to an agreement on Greece’s debt crisis. In Brussels, an emergency session of finance ministers late yesterday failed to reconcile a German-led push for bondholders to shoulder part of the cost of a new Greek aid package with European Central Bank warnings that the move may constitute the euro area’s first sovereign default.
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