U.S. stock futures decline as Alcoa drops; Dow futures shed 0.55%

Investing.com – U.S. stock futures pointed to a lower open on Tuesday, after Japan raised the severity rating of its nuclear crisis and as shares in Alcoa dropped after reporting disappointing first quarter earnings. 

Dow Jones Industrial Average futures pointed a drop of 0.55%, the S&P 500 futures declined 0.67%, while Nasdaq 100 futures indicated a drop of 0.68%.

Earlier in the day, Japan’s Nuclear and Industrial Safety Agency raised its assessment of the Fukushima nuclear accident from five to seven, a level that matches the 1986 Chernobyl disaster and indicates the most severe crisis.

Meanwhile, the largest U.S. aluminum producer Alcoa saw shares drop 3.85% in pre-market trade after it reported first quarter earnings that trailed market expectations late Monday.

The aluminum giant said revenue in the quarter rose 22% from a year earlier to USD5.96 billion, falling short of expectations for revenue of USD6.2 billion. First quarter net income rose to USD308 million, compared to a loss of USD201 million a year earlier, helped by higher aluminum prices.

Shares in WMS Industries tumbled 10.1% after the slot-machine manufacturer lowered its current quarter revenue outlook to USD192 million, down 9.4% from its initial revenue forecast of USD212 million, citing “lower-than-anticipated new unit demand”.

Level 3 Communications saw shares climb 1.75% after UBS upgraded the stock to ‘neutral’ from ‘sell’. The company saw shares surge 18% on Monday after it announced the acquisition of telecom services provider Global Crossing for nearly USD3 billion

Other stocks in focus include Proctor & Gamble, which said that its board raised the quarterly dividend by 9% to 52.5 cents per share. Mining stocks could also be active after metal prices retreated.

Across the Atlantic, European stock markets were broadly lower as automakers and miners led losses. The EURO STOXX 50 fell 0.85%, France’s CAC 40 tumbled 1.1%, Germany's DAX dropped 1%, while Britain's FTSE 100 slumped 0.95%.  

During the Asian trading session, Japan’s Nikkei 225 Index closed 1.7% lower after the International Monetary Fund cut its growth forecast for Japan and the U.S. and amid ongoing fears over the country’s nuclear crisis.
 
Earlier in the day, official government data showed that the U.S. trade deficit narrowed slightly less-than-expected in February, while a separate report said U.S. import prices rose more-than-expected in March.