Stock futures slide as Evergrande misses payment

FAN Editor

U.S. stock futures were under modest selling pressure Friday as worries continued to swirl over the fate of embattled Chinese property developer Evergrande. 

Evergrande missed a Thursday deadline to make an $83.5 million interest payment. The company is now in a 30-day grace period that ends in default if the payment is not made.

Dow Jones Industrial Average futures fell 91 points, or 0.26%, while S&P 500 futures and Nasdaq 100 futures declined 0.35% and 0.49%, respectively. 

The major averages on Thursday capped off a second day of strong gains after the Federal Reserve laid out its plans for potentially beginning to taper its asset purchases later this year and begin raising interest rates next year. 

In stocks, Nike Inc. cut its full-year revenue forecast as the sneaker giant grappled with supply chain disruptions and labor shortages. Quarterly earnings topped estimates while sales came up a bit short. 

Costco Wholesale Corp. said it would limit purchases on household essentials, including toilet paper, paper towels and bottled water, amid rising COVID-19 cases. The membership-only retailer reported earnings and revenue that exceeded Wall Street estimates. 

Elsewhere, IAC/Interactive Corp. is in advanced talks to acquire media conglomerate Meredith Corp. in a deal valued at more than $2.5 billion, according to a report from The Wall Street Journal. 

Coinbase Global Inc. and other crypto-related names were under pressure as bitcoin slid by about 5% to below $42,000 a coin after China said all crypto transactions are illegal. 

In commodities, West Texas Intermediate crude oil ticked up 1 cent to $73.31 a barrel and gold rose $6.60 to $1,756.40 an ounce.

Overseas markets were mostly lower as Evergrande’s missed payment spooked investors.  

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European bourses were weaker across the board with France’s CAC 40 falling 0.92%, Germany’s DAX 30 dropping 0.71% and Britain’s FTSE 100 slipping 0.18%. 

In Asia, Hong Kong’s Hang Seng index lost 1.3% and China’s Shanghai Composite index declined 0.8%. Japan’s Nikkei outperformed, rising 2.06%. 

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