Stock Futures Fall After European Elections
NEW YORK ( TheStreet) -- Stock futures were falling early Monday after the outcomes of elections in Greece and France over the weekend stoked fresh concerns about eurozone stability.
Futures for the Dow Jones Industrial Average were falling 39 points, or 64.3 points below fair value, at 12,918. Futures for the S&P 500 were down 4.1 points, or 7 points below fair value, at 1358, and futures for the Nasdaq were slumping 9.5 points, or 18.6 points below fair value, at 2616.
Wall Street sold off Friday after investors learned that the United States added only 115,000 jobs last month, the latest disappointing piece of data pointing to sluggishness in the economy.
On Sunday, Greek voters punished mainstream politicians and voted in favor of a far-right group for Parliament. With the country now in political gridlock and its ability to form a coalition government in doubt, questions have reignited over Greece's ability to carry out the strict reforms and cutbacks required for its crucial international bailout and future with the euro.
The New Democracy party garnered 19% of the votes and 108 seats in parliament, according to a count of the majority of ballots cast.
Socialist party Pasok, which had worked with New Democracy to secure the country's second bailout, fell into third place, with 13% of the votes and 41 seats. Pasok had won 44% of the votes in 2010.
Syriza, a coalition of Greece's radical left that aims to cancel what it views as harsh bailout terms, received 17% of voters' support, and as the second-largest party, has 52 seats.
Meanwhile, Francois Hollande defeated incumbent Nicolas Sarkozy in the French presidential election.
The election had turned into a referendum on austerity measures championed by Sarkozy and his close partner, German Chancellor Angela Merkel, as they sought to lead the eurozone out of its debt crisis.
In Europe, the Dax in Germany was down 0.4% and the London stock exchange was closed for the May Day holiday. The Hang Seng Index in Hong Kong closed down by 2.6%. Japan's Nikkei average fell 2.8%.
The benchmark 10-year Treasury was gaining 4/32, diluting the yield to 1.9%. The dollar was up 0.2%, according to the dollar index.
In commodity markets, the June crude oil contract was off 60 cents at $97.89 a barrel. June gold futures were falling $7 to $1,638.20 an ounce.
In corporate news, AT&T (T) , the No. 2 U.S. telecommunications company, plans to start selling home monitoring services nationwide. AT&T expects to begin trials of the services this summer in Dallas and Atlanta. Shares were trading sideways ahead of the open.
Tyson Foods (TSN) reported second-quarter earnings Monday of $166 million, or 44 cents a share, up from year-earlier earnings of $159 million, or 42 cents. Sales were $8.3 billion, up from $8 billion last year.