By William L. Watts
U.S. stock index futures edged slightly lower Thursday, pointing to a flat-to-weaker opening for Wall Street as investors awaited a Friday speech by Federal Reserve Chairman Ben Bernanke, while shares of Apple Inc. tumbled in premarket trade following the resignation of co-founder and Chief Executive Steve Jobs.
Futures on the Dow Jones Industrial Average fell 12 points to 11,256. Standard & Poor's 500 Index futures fell 3.1 points to 1,168.90, while Nasdaq 100 futures fell 16.5 points to 2,122.50.
Index futures had traded mostly higher in early activity, but lost ground as an early rally by European equities lost steam, said David Jones, chief market strategist at IG Index, in London.
A more cautious tone has seeped into the market as expectations faded that Bernanke will use his appearance at Friday's international conference of central bankers in Jackson Hole, Wyo., to signal an additional round of quantitative easing, he said.
Shares of Apple declined more than 4% in premarket trade. In a letter to Apple's board of directors released after markets closed on Wednesday, Jobs announced he was stepping down. Apple's board appointed long-time lieutenant Tim Cook to replace him on Jobs's recommendation.
The resignation by Jobs, who has battled several illnesses in recent years, triggered selling as investors assessed the company's prospects without Jobs, who transformed the company and led it to become the second-most valuable corporation in the world after Exxon Mobil Corp.
The news also put pressure on other tech companies, weighing down Nasdaq 100 futures, in what appeared to be a "knee-jerk reaction" across the sector, Jones said.
On the data front, the Labor Department reports weekly jobless claims data at 8:30 a.m. EDT. Economists surveyed by Dow Jones Newswires expect first-time claims in the week ended Aug. 20 to fall to 405,000 from 408,000 the previous week.
Gold futures remained under heavy pressure, with gold for December delivery down $42.80 to $1,714.50 in electronic trade. December gold dropped more than $100 an ounce on Wednesday.
European stocks trimmed early gains but remained mostly higher, boosted by well-received earnings reports from commodities trader Glencore International PLC, as well as bank Credit Agricole SA and beverage maker Diageo PLC.
Most Asian markets ended higher, following through on Wednesday gains by Wall Street and finding support on upbeat earnings results from Asian companies, although some tech shares suffered in the wake of Jobs's resignation.
U.S. stocks notched their third consecutive positive session on Wednesday, with the Dow Jones Industrial Average rising 143.95 points to close at 11,320.71. The S&P 500 rose 15.25 points to end at 1,177.60, while the Nasdaq Composite Index gained 21.63 points to finish at 2,467.69.
-William L. Watts; 415-439-6400; AskNewswires@dowjones.com
Among the companies whose shares are expected to actively trade in Thursday's session are Apple Inc. (AAPL), Collective Brands Inc. (PSS) and Sigma Designs Inc. (SIGM).
Apple's ailing chief executive, Steve Jobs, is officially stepping down from the helm of the company, a historic shift that hands the reins to Chief Operating Officer Tim Cook. Shares were down 5.1% at $357.10 in after-hours trading.
Collective Brands reported Wednesday it swung to a fiscal second-quarter loss on impairment and severance charges, but announced efforts to improve shareholder value and optimize its store fleet. Shares surged 33% to $13.70 in recent after-hours trading as the company said it would "conduct a review of strategic and financial alternatives to further enhance shareholder value" and adopted a short-duration Rights Plan to protect shareholder rights.
Sigma Designs swung to a sharply wider-than-expected loss in its fiscal second quarter as delays in the rollout of the firm's television set-top boxes punished the top line. Shares fell 14% to $7.22 in after-hours trading.
Applied Materials Inc.'s (AMAT) fiscal third-quarter profit nearly quadrupled as improved sales in its TV display business helped improve the bottom line. Shares still dropped 4.1% to $10.90 after hours as the company forecast a downbeat fourth-quarter profit.
Guess Inc.'s (GES) fiscal second-quarter profit fell 9.1% on a settlement charge, though the apparel maker posted better-than-expected revenue on double-digit sales growth in Europe and Asia. Shares fell 4.5% to $31.79 in after-hours trading as the company posted a weak outlook.
TiVo Inc.'s (TIVO) posted a narrower-than-expected loss in its fiscal second quarter as the company signed more agreements for cable companies to use its set-top-box. Shares were up 4.8% at $8.51 in after-hours trading.
Rue21 Inc.'s (RUE) fiscal second-quarter profit rose 20% as the value-oriented teen-apparel retailer posted double-digit sales growth. However, shares fell 11% to $24 in after-hours trading as the company also posted flat comparable store-sales.
Semtech Corp.'s (SMTC) second-quarter profit jumped 38% as margins widened and the company expanded its plan for stock buybacks. Shares still fell 3.9% to $19.60 after-hours as the company forecast adjusted third-quarter earnings below analysts' estimates.
Exceed Co. (EDS) promoted finance executive Vivien Tai to the role of chief financial officer, as her predecessor, Terence Wong, departs the sportswear company "to pursue another professional opportunity," it said Wednesday in a release. Shares in the Chinese company were down 7% at $3.47 in light after-hours trading.
Oxygen Biotherapeutics Inc. (OXBT) said Chairman and Chief Executive Chris J. Stern has left the company, and it named its chief financial officer as interim CEO during its search for a permanent replacement. Shares sank 26% to $1.73 after hours as the developer of medical and cosmetic products said it will not pay Stern any severance "due to the circumstances surrounding his dismissal," without elaborating further.
Watch List:
Aviat Networks Inc. (AVNW) posted a narrower loss for its fiscal fourth quarter on strong revenue growth in Africa and North America, while the firm separately disclosed the departure of its chief financial officer.
Cracker Barrel Old Country Store Inc. (CBRL) on Wednesday rebuffed a call from activist investor Sardar Biglari to offer a more detailed breakout of its business segments, calling the proposal "neither required nor appropriate."
Heico Corp.'s (HEI, HEIA) fiscal third-quarter earnings rose 37% as the company reported its highest quarterly sales ever.
Solera Holdings Inc. (SLH) fiscal fourth-quarter earnings fell 7.2%, but adjusted, the bottom line improved on broad-based sales growth, as the software company predicted a strong fiscal year.
SPX Corp. (SPW) agreed to acquire Clydeunion Pumps for GBP700 million ($1.15 billion) in a bid to expand the manufacturing and industrial-equipment supplier's international customer portfolio.
Xcel Energy Inc. (XEL) tapped Chief Operating Officer Ben Fowke as its next chief executive, naming a company insider to lead the utility after current chief Richard C. Kelly retires.
-Edited by Caitlin Nish and Corrie Driebusch; write to caitlin.nish@dowjones.com and corrie.driebusch@dowjones.com