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GM's warning sends stock futures into the red

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Stock futures took a turn lower after S&P futures (sp03m) had traded as high as 892 in their overnight session, after General Motors (NYSE:GM) beat analysts estimates, but warned that it may not be able to meet analysts estimates in its upcoming second quarter as global economic weakness hurts results.

S&P futures (sp03m) currently trade down 0.50 at 885.50, while cautious comments from Novellus (NASDAQ:NVLS) on semiconductor equipment outlook has NASDAQ futures (nd03m) trading lower by 0.50 at 1,048, and Dow futures (dj03m) fall 22 points at 8,320.

Stock futures action now has traders looking at a mixed to lower open as fair value for the S&P 500 today is $-0.73. HL Camp & Company has their computers set for program buying at $0.51 and set for program selling at $-2.14. Fair value for the NASDAQ-100 today is $2.53.

Some of the headline numbers from Dow components that reported earnings this morning have Dow component and world's largest automobile maker General Motors (GM) reported Q1 (Mar) earnings of $1.84 per share (excluding items), which was $0.30 better than consensus, saying revenues rose 4.8% year-over-year to $46.32 billion, which was also above consensus for $40.69 billion. Revenues excluded GM Hughes. However, the company said it sees Q2 EPS of at least $1.00, which is well below analysts consensus of $1.39, saying it is "less certain" of its ability to meet previous full year guidance of $5.00. Analysts consensus for GM's fiscal 2003 is for the company to earn $4.67 per share.

Drug maker/consumer products giant and Dow component Johnson & Johnson reported Reports Q1 (Mar) earnings of $0.69 per share, which was 1 cent better than consensus of $0.68. The company said revenues rose 12.3% year/year to $9.82 billion, which was slightly above the $9.65 billion consensus of analysts.

Semiconductor equipment makers are seeing a lower trade in this mornings pre-market after Novellus (NASDAQ:NVLS) $27.35 lowered guidance after reporting earnings last night. Shares of NVLS are seeing pre-market trading at $25.95, or down 5.11% from yesterday's close, while Applied Materials (NASDAQ:AMAT) $13.48 is off 26 cents at $13.22 and KLA-Tencor (NASDAQ:KLAC) $37.19 falls to $36.62.

Jeff Bailey

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