DJI- NEW YORK, May 10 (Reuters) - U.S. stock index futures fell sharply on Thursday evening as JPMorgan Chase & Co stunned investors with news that its chief investment office had incurred "significant mark-to-market losses" that it said could "easily get worse."
JPMorgan's stock fell nearly 7 percent to $38.05 in after-hours trading and dragged down shares across the entire banking sector. Its executives called an extraordinary conference call with analysts at 5 p.m. EDT where Chief Executive Jamie Dimon said "egregious" mistakes had been made.
The news from JPMorgan comes at a difficult juncture for the stock market as investors wrestle with heightened concerns about Europe's debt crisis and signs are emerging that the U.S. economic recovery may be starting to slow.
S&P 500 futures fell 11.6 points and were below fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration of the contract. Nasdaq 100 futures fell 16.75 points.
If there is nothing to reassure investors between now and the start of trade on Friday the weakness in likely to spill over into the cash market.
In a positive development, euro-zone officials said the bloc's countries are prepared to keep financing Greece until the country forms a new government. [ID:nB5E8FA01P]
The Dow's modest rise broke a six-day losing streak for the blue-chip average. But the S&P 500 could not hold enough gains to close above its April low. Still, the S&P has rebounded after falling to a two-month low near 1,340 on Wednesday.
On Thursday, the Dow Jones industrial average <.DJI> rose 19.98 points, or 0.16 percent, to close at 12,855.04. The Standard & Poor's 500 Index <.SPX> added 3.41 points, or 0.25 percent, to end at 1,357.99. But the Nasdaq Composite Index <.IXIC> fell 1.07 points, or 0.04 percent, to close at 2,933.64.
The latest uncertainty surrounding Greece and the euro zone's sovereign debt crisis helped spark a drop in the S&P 500 in five of the past seven sessions, sending the benchmark index down 4 percent. While the region's difficulties persisted with the political gridlock in Greece, investors used the market's declines as a buying opportunity.
The number of Americans applying for jobless benefits fell last week, but from an upwardly revised figure from the previous week. The report follows last month's nonfarm payrolls report, which showed weak employment growth in April. [ID:nL1E8GA1I4]
Signs of softness in the U.S. economy recently have led some investors to err on the side of caution and cut back on sectors exposed to the vicissitudes of the economic cycle.
NYMEX- NEW YORK, May 10 (Reuters) - U.S. crude futures edged up on Thursday, snapping a string of six lower settlements, as supportive labor and trade data from the United States countered disappointing Chinese trade data and higher OPEC production.
Investors hoped for better demand for petroleum after news that U.S. initial jobless claims edged down last week. The data eased concerns about a deteriorating labor market, though the drop was from a revised higher level.[ID:nL1E8GA1I4]
The four-week moving average, considered a better measure of labor market trends, also fell.
A separate report showed the U.S. trade deficit widened in March. Exports hit a record high and imports rose, indicating firming underlying demand.
Brent crude slipped and U.S. crude gains were limited by the unsettled Greek political situation and weak Chinese trade data.
No. 2 oil consumer China saw its exports and imports in April grow at a far slower rate than forecast. [ID:nEAP307401]
Greek political parties engaged in a last-gasp attempt to form a government and avoid new elections on Thursday after recent elections plunged the debt-ridden country into crisis.
The deadlock prompted a stream of warnings by European leaders that Greece would be thrown out of the euro if it did not stick to the terms of the bailout.
* On the New York Mercantile Exchange, June crude rose 27 cents, or 0.28 percent, to settle at $97.08 a barrel, having traded from $96.08, below the 200-day moving average of $96.28, and reaching $97.69.
* OPEC said its production rose in April to 31.62 million barrels per day (bpd) as Iraq and Libya ramped up. OPEC in December set its official supply target at 30 million bpd. [ID:nL5E8GA5O7]
* Saudi Arabia will supply crude oil to its customers in June at the same volume as May. [ID:nL4E8GA35D]
* Iran cut its official selling prices for June-loading crude to Asia from May as it seeks to encourage Asian buyers, but raised prices to Europe where buyers have mostly retreated, trading sources said. [ID:nL4E8GA1RD]
CBOT SOYEAN- Soybean futures on the Chicago Board of Trade rose after forecasts for U.S. soybean ending stocks from the U.S. Department of Agriculture came in below trade expectations, traders said.
* Soymeal posted the biggest advances in the soy complex, gaining relative to soyoil on meal/oil spreads.
* USDA lowered its forecast of U.S. 2011/12 soybean ending stocks to 210 million bushels, down from 250 million in April and below the average trade estimate of 210 million.
* USDA projected 2012/13 U.S. soybean ending stocks at 145 million bushels, below the average trade estimate of 164 million bushels.
* USDA cut its forecast of 2011/12 soybean production in Brazil to 65 million tonnes, from 66 million in April, and cut its estimate for Argentina's crop to 42.5 million tonnes, from 45 million in April.
* The Rosario grains exchange lowered its estimate of Argentina's 2011/12 soybean crop to 40.9 million tonnes, from 43.1 million last month, due to drought. [ID:nE6E7NC01Z]
* However, Brazil's agriculture ministry raised its projection for the country's soy crop to 66.7 million tonnes, from an April estimate of 65.6 million. [ID:nL1E8GA136]
* USDA reported export sales of U.S. soybeans in the latest week at 1.827 million tonnes (old and new crop years combined), above trade expectations for 1.2 million to 1.4 million tonnes.
* USDA reported weekly export sales of U.S. soymeal at 235,500 tonnes, above trade expectations, and weekly soyoil sales at 30,100 tonnes, below expectations.
* China will offer 2.5 million tonnes of soybeans to crushers from state reserves, mainly in inland provinces in the northeast, to cut government stocks before the new harvest, industry sources said. [ID:nL4E8GA7J5]
FCPO- SINGAPORE, May 10 (Reuters) - Malaysian palm oil futures edged up on Thursday, as traders bet on lower palm oil stocks, although gains were capped by lingering euro zone fears and slower exports of the edible oil this month.
The market, which has gained nearly 5.5 percent so far this year, drew support from an industry report that showed palm oil stocks in No.2 producer Malaysia fell to a one-year low.
But trading was volatile this week after polls in France and Greece threatened to put euro zone bailout programme at risk, while the latest Chinese trade data showed signs that the world's No.2 economy could be slowing down. [ID:nEAP307401]
There could be some price declines in the days to come after cargo surveyor Societe Generale de Surveillance reported a 14.2 percent drop in May 1-10 Malaysian palm oil exports compared to a month ago, suggesting the slowing economy may be curbing demand.
"The market is looking at the MPOB (Malaysian Palm Oil Board) report today, market is a little bit positive on that," said a trader with a foreign commodities brokerage in Malaysia.
"Because of external factors such as emerging issues in Europe, the market has been very uncertain. The USDA (U.S. Department of Agriculture) report will add to the volatility too, market should be trading in the 3,300-3,400 ringgit range for the next two days."
Benchmark July palm oil futures on the Bursa Malaysia Derivatives Exchange gained 0.4 percent to close at 3,349 ringgit ($1,093) per tonne.
Traded volumes stood at 27,230 lots of 25 tonnes each, higher than the usual 25,000 lots as volumes picked up after the midday break.
Malaysia's April palm oil stocks fell 5.4 percent to 1.85 million tonnes from a month ago, said industry regulator Malaysian Palm Oil Board after the midday break. [ID:nL4E8GA2VA]
While that puts stock level slightly higher than the expected 1.82 million tonnes, it is still at a one-year low and likely to push palm oil prices higher. [PALM/POLL]
Malaysian palm oil exports for May 1-10 fell by 6 percent compared to a month ago, said another cargo surveyor Intertek Testing Services, reflecting lower demand from major food buyer China and India.
Market players are watching the monthly planting report for soybeans that will be issued by the U.S. Department of Agriculture later on Thursday. A smaller soybean crop for crushing into competing soybean oil will support palm oil prices.
Singapore's Wilmar International Ltd , the world's largest listed palm oil firm, posted a surprise 34 percent drop in quarterly earnings on Thursday, hurt by losses at its largely China-based oilseeds and grains business. [ID:nL4E8G9ABV]
REGIONAL EQUITY-BANGKOK, May 10 (Reuters) - Thai shares fell to three-week lows while Philippine stocks hit their lowest in almost two weeks on Thursday, led down by index heavyweights amid concerns over debt problems in Europe.
Most other Southeast Asian stock markets recouped early losses.
Thailand's main SET index <.SETI> fell 1.38 percent, extending its loss for a second day to 1,190.65, the lowest close since April 23. The Philippine index <.PSI> ended down 0.4 percent at 5,192.10, the lowest close since April 30.
Indonesia saw outflows for three consecutive sessions to Wednesday for a combined $129 million and Thailand posted $76 million in outflows on Wednesday, after taking in $62 million in inflows in past two sessions, Thomson Reuters data showed.
