Stock futures point to modest retreat

Stocks pointed to a lower open Wednesday after FedEx Corp.’s profit forecast fell short of expectations and as traders awaited reports on housing starts and industrial production.

The drop in stock futures came a day after the Dow Jones industrials rose 214 points to the highest close in nearly a month. Some pause in the market is to be expected after stocks have risen three of the past four days.

The Dow ended above its average close of the past 200 days for the first time since May 19. Finishing above that level is seen as a sign of strength.

A drop in the euro damped the stock market’s momentum. U.S. markets have been tracking the moves of the 16-nation currency since stocks hit their 2010 peaks in late April. Traders see the moves of the euro as a reading on confidence in Europe’s ability to cut spending without spoiling an economic rebound. The fear is that a slowdown in Europe would endanger a U.S. recovery. The euro fell to $1.2264.

Results from FedEx raised more questions about the economy. The package delivery company is seen a barometer of the strength of the overall economy because shipping demand tends to increase as business conditions improve. FedEx’s fiscal 2001 forecast came in below analysts’ consensus forecast. The company said its forecast was based on the assumption of a continued “moderate recovery” in the global economy.

Traders are also cautious ahead of economic numbers. Economists forecast that housing construction slowed in May after a homebuyer tax credit expired at the end of April. Analysts are also looking for wholesale prices to have fallen in May following a drop in gasoline and food costs.

The government reports are due at 8:30 a.m. EDT.

The Federal Reserve is expected to report at 9:15 a.m. that production at the nation’s factories, mines and utilities increased 0.9 percent last month.

Oil companies will draw more attention after President Barack Obama said in his first Oval Office address Tuesday night that he would make BP would pay for the oil spill. Obama is set to meet with BP executives Wednesday at the White House.

Dow Jones industrial average futures fell 41, or 0.4 percent, to 10,291. Standard & Poor’s 500 index futures fell 5.60, or 0.5 percent, to 1,103.60, while Nasdaq 100 index futures dropped 8.25, or 0.4 percent, to 1,885.00.

Bond prices rose, pushing down interest rates. The yield on the benchmark 10-year Treasury note fell to 3.27 percent from 3.31 percent late Tuesday.

The dollar rose against other major currencies, while gold prices rose.

Crude oil fell 71 cents to $76.23 per barrel in electronic trading on the New York Mercantile Exchange.

In afternoon trading, Britain’s FTSE 100 rose 0.2 percent, Germany’s DAX index fell 0.2 percent, and France’s CAC-40 lost 0.2 percent.