* AIG weighs on financials after big loss
* Wal-Mart adds to caution as sales miss estimates
* Pending home sales, jobless claims on tap
(Updates prices)
By Ellis Mnyandu
NEW YORK, Aug 7 (Reuters) - U.S. stock index futures fell
on Thursday as a big loss from insurer American International
Group Inc <AIG.N> heightened concerns about the credit crisis
and its impact financial companies and the broader economy.
Adding to investors' disappointment after two days of
market gains, Wal-Mart Stores Inc <WMT.N> announced July U.S.
same-store sales that fell short of Wall Street's expectations,
highlighting the pinch consumers are feeling as they grapple
with falling home values and higher gasoline prices.
Shares of AIG, the world's largest insurance company, fell
more than 10 percent before the bell, while Wal-Mart, the
world's largest retailer, shed more than 3 percent. Both are
Dow components.
AIG said late on Wednesday it lost $5.36 billion, its third straight quarterly loss, and blamed soured mortgage-related
investments.
"It appears that AIG's results disappointment has dampened
enthusiasm about the market's recent gains," said Andre Bakhos,
president of Princeton Financial Group in Princeton, New
Jersey. "We're seeing the remnants of the credit market mess.
AIG could be an excuse for the market to take a short-term
respite."
S&P 500 futures <SPc1> fell 5.10 points, and were below
fair value, a formula that evaluates pricing by taking into
account interest rates, dividends and time to expiration on the
contract.
Dow Jones industrial average futures <DJc1> shed 66 points
and Nasdaq 100 <NDc1> futures declined 2.50 points.
A drag from AIG will increase pressure for the financial
sector after the company's European rivals, Aegon <AEGN.AS> and
AXA <AXAF.PA>, also disappointed investors with sharply lower
earnings, keeping a lid on European equity markets.
AIG also reported a general deterioration in its mainstream
insurance businesses, which were hurt in particular by a
decline in investment income and losses from its mortgage
insurer, United Guaranty Corp. For details, see []
Shares of AIG shares fell to $26.01.
Wal-Mart reported a 3 percent rise in July sales at U.S.
stores open at least a year, but that missed Wall Street
estimates, and the company issued a cautious forecast for
August. []. Its shares declined to $58.85.
In economic news, data on pending home sales is due at 10
a.m. (1400 GMT) following the release of weekly jobless claims
at 8:30 a.m. (1230 GMT).
Stocks rose on Wednesday, building on the previous day's
big gains, as a further drop in oil prices and a reassuring
outlook from Cisco Systems <CSCO.O> overshadowed persistent
credit concerns.
(Editing by Kenneth Barry)
