* Massive earthquake rocks Japan
* China inflation accelerates
* Saudi protests eyed
* Futures off: Dow 35 pts, S&P 2.5, Nasdaq 6.25
* For up-to-the-minute market news see []
By Chuck Mikolajczak
NEW YORK, March 11 (Reuters) - U.S. stock index futures
fell on Friday after a massive earthquake hit Japan and
accelerating inflation in China rattled investors.
The biggest earthquake on record to struck Japan on Friday,
triggering a roughly 30-foot tsunami that swept away everything
in its path, including houses, ships and cars. For details, see
[]
Chinese inflation topped expectations in February at 4.9
percent and looked set to climb further in coming months,
adding to pressure for another dose of monetary tightening.
[]
Japanese stock futures fell 2.4 percent after the
earthquake, but market players said the slide may not be too
deep because major cities and manufacturing facilities were not
affected. []
"Had yesterday been a decent day, today would've been the
sell-off. Something tells me this is not going to be a big
event for our market," said Jamie Cox, managing partner of
Harris Financial Group in Colonial Heights, Virginia
.
"I'm not sure that the equities markets are the ones that
are going to be on ball bearings today," he added. "It is going
to be all the commodities markets. Those markets are going to
be the ones you have to watch and that is actually good for
equities."
Brent crude futures fell 2 percent to near $113, and U.S.
crude dropped 2.5 percent to about $100 as the earthquake shut
down dozens of plants in the world's third-largest oil
consumer. []
S&P 500 futures <SPc2> lost 2.5 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> fell 35
points, and Nasdaq 100 futures <NDc2> dropped 6.25 points.
Investors watched the Middle East and North Africa ahead of
a planned day of demonstrations in Saudi Arabia that will test
whether online calls for protests move to the streets.
[]
Insurer Aflac Inc <AFL.N> fell 3.2 percent to $53.92 in
premarket and Berkshire Hathaway Inc <BRKb.N> lost 1.4 percent
to $83.79.
On the economic front, investors will monitor U.S. retail
sales data at 8:30 a.m. EST [].
Apple Inc <AAPL.O> kicks off sales of its latest iPad model
Friday and analysts expect the company to extend its lead in
the burgeoning tablet computer market. []
European shares hit a three-month low, falling 0.6 percent
with sentiment worsening after Japan's earthquake and on
growing unrest in the Arab world, but analysts expect equities
to bounce back. []
Asian shares dipped as weak economic data and spreading
Middle East unrest prompted profit-taking. []
Fears about the economy and unrest in Saudi Arabia darkened
the outlook for equities on Thursday, pushing major indexes
below key technical levels.
(Reporting by Chuck Mikolajczak; editing by Jeffrey Benkoe)
