BEFORE THE BELL: US Stock Futures Down




U.S. stock futures were pointing to losses for Wall Street as investors return on Monday after the long Christmas weekend, with rate hikes from China the first item of business with which to contend.

Futures for the Dow Jones Industrial Average fell 40 points, or 0.3%, to 11482 and those for the S&P 500 index fell 5 points, or 0.4%, to 1248. Futures for the Nasdaq 100 index fell 4.75 points, or 0.2%, to 2225.75.

Weaker European and Asia markets were setting the tone after China hiked its key lending and deposit rates by a quarter-point each on Saturday. Analysts said the move could mean Beijing is now picking up the pace in efforts to slow the economy. See China's hike signals no more soft touch

In Europe, stocks fell with auto makers leading the declines, as China is one of the world's biggest car markets.

The Dow Jones Industrial Average managed a fresh two-year closing high on Thursday, up 14 points, or 0.12% to 11573.49, though the Nasdaq Composite and S&P 500 indexes fell. Markets were positive on the week, with the Dow Industrials up 0.7%, the S&P 500 up 1% and Nasdaq up 0.9%.

There is no major economic or corporate news on the calendar for Monday, though retailers could be in focus as heavy snowstorms battered the East Coast on Sunday, making it difficult for shoppers to get out on one of the biggest shopping days of the year.

Airlines such as US Airways Group Inc. (LCC) and United Continental Holdings (UAL) could also be in the spotlight as travel was severely disrupted due to those storms. New York's JFK Airport closed until 5 a.m. Monday, EST, due to blizzard conditions.

Ford Motor Co. (F) on Monday said it plans to introduce start-stop technology on many cars in 2012 and will eventually be unveiled across all global markets. According to media reports, Ford is due to reveal the new fuel-saving measure in January at the North American International Auto Show in Detroit.

Shares of Cal-Maine Foods Inc. (CALM) could be in focus after the egg producer said second-quarter net income fell 5.6% on 2.3% higher sales. While specialty-egg sales have continued to grow, feed costs hurt profits in the period and "remained a concern for fiscal 2011," said Dolph Baker, president and chief executive.

In Europe, autos such as Volkswagen AG (VOW.XE, VLKAY) fell over 5% while BWM AG (BMW.XE) and Daimler AG (DAI.XE, DDAIY) fell at least by 4%, dragging the German and overall Stoxx Europe 600 index lower, in the wake of that China hike. Peugeot SA fell 2.5% in Paris.

Volume was lacking in Europe as well, with London markets closed until Wednesday for the Christmas holiday.

In Asia, China's Shanghai Composite Index finished nearly 2% lower, led by financials such as China Construction Bank (0939.HK, 601939.SH, CICHY). One analyst said the hikes in China Saturday, plus other tightening moves in recent weeks, have triggered worries about the lending capability of Chinese banks.

Gold futures for February delivery rose $1.50 to $1,382 an ounce, while crude oil futures for February fell 46 cents to $91.05 a barrel.

The dollar was mostly weaker across the board, off 0.3% against the euro at $1.3162.

-By Barbara Kollmeyer; 34 91 395 8131; AskNewswires@dowjones.com

Among the companies whose shares are expected to actively trade in Monday's session are Cal-Maine Foods Inc. (CALM), A-Power Energy Generation Systems Ltd. (APWR) and Alimera Sciences Inc. (ALIM).

Cal-Maine Foods' fiscal second-quarter earnings fell 5.6% as the largest U.S. producer and distributor of fresh shell eggs reported that higher feed costs and weak demand in September following a nationwide egg recall more than offset the benefit of recently improved market conditions. The bottom line missed analysts' expectations. Shares fell 4.2% to $32.40 premarket.

A-Power Energy Generation Systems Ltd. (APWR), a wind-turbine maker and provider of electricity-generation systems in China, signed a contract to design and build a coal-based power plant in the province of Inner Mongolia. Shares were up 12% to $5.75 premarket.

Biotech company Alimera Sciences said the U.S. Food and Drug Administration won't approve its application for its most advanced product, Iluvien, in its current form. Shares plunged in premarket trading, dropping 20% to $8.93. Shares in Alimera's partner on the drug, pSivida Corp. (PSDV), were also down, dropping 23% premarket to $4.90.

NGAS Resources Inc. (NGAS) reached a definitive agreement to be acquired by Magnum Hunter Resources Corp. (MHR) in an all-stock deal worth about $43 million. Under the terms of the deal, each share of NGAS, a horizontal drilling company operating in the southern Appalachian Basin, will be transferred to Magnum for the right to receive 0.0846 share of Magnum. That values NGAS at 55 cents a share, a 41% premium to its close Thursday. Shares of NGAS rose 36% premarket to 52 cents, while Magnum dropped 1.6% to $6.61.

IncrediMail Ltd. (MAIL), a digital-media company that builds downloadable consumer products, said it has signed a new two-year agreement with Google Inc. (GOOG). The terms of the agreement weren't detailed. IncrediMail shares were up 8.7% premarket to $7.72.




AMR Corp.'s (AMR) American Airlines said Thursday that Expedia (EXPE) was hiding its flights, in the first fallout from the carrier's decision to stop selling flights through Orbitz Worldwide (OWW).

DryShips Inc. (DRYS) said it is entering the tanker industry with a $770 million purchase of 12 vessels from a South Korean shipyard and planned to set the new segment up for a spinoff or initial public offering.