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US STOCKS-Wall St to slip at open on global growth worries
November 20, 2014 / 2:07 PM / 3 years ago

US STOCKS-Wall St to slip at open on global growth worries

* Best Buy jumps after earnings beat

* GoPro falls after pricing follow-on shares at discount

* Futures off: Dow 85 pts, S&P 10 pts, Nasdaq 19 pts (Updates prices, adds data, comment)

By Rodrigo Campos

NEW YORK, Nov 20 (Reuters) - U.S. stocks were set to open lower on Thursday amid concerns over global growth following weak business data out of the euro zone and a loss of momentum in Chinese factories.

Euro zone business is growing at a slower pace than any forecaster expected this month and new orders have fallen for the first time in more than a year, while output in China’s factory sector contracted for the first time in six months.

Futures are “basically following European markets lower,” said Peter Cardillo, chief market economist at Rockwell Global Capital in New York.

“This type of action continues to suggest the market is consolidating and taking somewhat of a breather before heading higher towards year-end,” said Cardillo.

S&P 500 e-mini futures were down 10 points and fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract, indicated a lower open. Dow Jones industrial average e-mini futures fell 85 points and Nasdaq 100 e-mini futures lost 19 points.

U.S. consumer prices were unexpectedly flat in October though underlying inflation pressures were starting to push higher, while new claims for unemployment benefits fell less than expected last week but continued to point to a strengthening labor market.

Markit’s manufacturing PMI is due at 9:45 a.m. EST (1445 GMT) and home resales and the Philadelphia Fed business index at 10:00 a.m. (1500 GMT).

GoPro shares fell 6.8 percent to $73.70 in premarket trading after a follow-on-offering of 10.4 million shares priced at $75 per share, a 5.2 percent discount to Wednesday’s $79.09 close.

Best Buy added 6 percent in premarket trading after posting revenue that beat analyst expectations.

Editing by Bernadette Baum

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