Wednesday, Dec 21, 2011

--Stock futures turn lower on uncertainty over ECB measures, Oracle results

--ECB's long-term refinancing operation exceeds expectations

--Oracle shares slump as results fall short of expectations

--Data on existing home sales on tap 


 
   By Tomi Kilgore 
   DOW JONES NEWSWIRES

NEW YORK (Dow Jones)--U.S. stock futures erased early gains as investors were reluctant to extend the previous session's sharp gains given uncertainty over the impact of measures to add liquidity to euro-zone banks and disappointing results from Oracle.

Dow Jones Industrial Average futures fell 10 points, or less than 0.1%, to 12021, after being up more than 120 points in overnight trading. The Dow surged 337 points, or 2.9%, on Tuesday, the biggest one-day point and percentage since Nov. 30.

Standard & Poor's 500-stock index futures eased 3 points, or 0.1%, to 1233 and Nasdaq 100 futures fell 3.75 points to 2263. Changes in stock futures do not always accurately predict stock moves after the opening bell.

European markets pared earlier gains but remained broadly higher after the European Central Bank's longer-term refinancing operation beat expectations by allotting EUR489.19 billion in three-year loans to 523 euro-zone banks in the first of two refinancing operations.

Analysts had expected the amount of loans to exceed EUR300 billion. The greater-than-expected demand prompted some concern that the amount may not be enough.

The Stoxx Europe 600 rose 0.2%, but had been up as much as 1.4% at its intraday high.

Asian bourses were mostly higher, with South Korea's Kospi running up 3.1%, but China's Shanghai Composite erased early gains to shed 1.1%.

Gold futures inched 0.1% lower to $1,616.60 an ounce, while crude oil futures ticked up 0.1% to $97.35 a barrel. The U.S. dollar rose against the euro, but lost ground against the yen.

The economic calendar is relatively light, with only data on existing home sales in November scheduled for release at 10 a.m. EST.

In corporate news, shares of Oracle slumped 9.8% after the database giant reported fiscal second-quarter earnings and revenue that fell short of expectations, overshadowing a $5 billion increase to its share repurchase program.

Delphi Financial Group soared 73% after Japan's Tokio Marine said it agreed to buy the insurance company for $2.66 billion.

Nike tacked on 3.1% as the athletic-apparel maker's better-than-forecast fiscal second-quarter results helped offset declining margins as a result of rising product costs.

Walgreen slumped 4.5% reported fiscal first-quarter earnings that missed analyst forecasts, saying a delay in the cold and flu season impacting results.

CarMax slipped 1.8% after the used car retailer reported fiscal third-quarter earnings that fell shy of expectations and a decline in comparable-store sales.

Teva Pharmaceuticals rose 1% after the generic drug company authorized the buyback of up to $3 billion worth of its common stock, which at current market capitalization would amount to 8% of the shares outstanding.

-By Tomi Kilgore, Dow Jones Newswires; 212-416-2470; tomi.kilgore@dowjones.com

(END) Dow Jones Newswires

December 21, 2011 08:10 ET (13:10 GMT)