May 30 (Bloomberg) -- U.S. stock futures fell, putting the Standard & Poor’s 500 Index on pace for its worst month since September, on concern Greece will leave the euro while Spain’s default risk hit a record as it struggles to recapitalize banks.
Bank of America Corp. and Citigroup Inc. slipped at least 1.5 percent. Freeport-McMoRan Copper & Gold Inc. and Dow Chemical Co. dropped more than 1.2 percent to pace declines in commodity shares. Research In Motion Ltd. retreated 10 percent after the BlackBerry maker forecast a surprise operating loss and hired banks to advise on strategic options. Facebook Inc., which tumbled 9.6 percent yesterday, slid 0.6 percent.
S&P 500 futures expiring in June retreated 0.9 percent to 1,321.2 at 9:19 a.m. New York time. The benchmark gauge has fallen 4.7 percent so far in May. Dow Jones Industrial Average futures slipped 119 points, or 1 percent, to 12,464 today.
“What you’re seeing is worry about how this really plays out and whether Europe has the ability to even solve the problem at this point,” Madelynn Matlock, who helps oversee about $14.7 billion at Huntington Asset Advisors in Cincinnati, said in a phone interview. “It’s probably a given that Greece will need a more flexible plan. The question is -- under which Greek government does that take place and how does that get negotiated?”
Global stocks slumped while U.S. Treasury 10-year yields slid to a record and the euro weakened to a two-year low. An opinion poll showed most Greeks want to see the terms of an international financial rescue revised. The European Commission called for direct euro-area aid for troubled banks and touted common bond issuance as an antidote to the debt crisis now threatening to overwhelm Spain.
In the U.S., a report from the National Association of Realtors today will probably show pending home sales in the U.S. were unchanged in April, according to a Bloomberg survey. The Labor Department is scheduled to release its monthly employment report on June 1.
American banks joined a slump in European financial companies. Bank of America retreated 1.5 percent to $7.33. Citigroup declined 1.6 percent to $26.59.
Commodity producers slumped as the S&P GSCI gauge of raw materials dropped 1.6 percent. Freeport-McMoRan, the world’s biggest publicly traded copper miner, dropped 2 percent to $32.55. Dow Chemical slid 1.2 percent to $31.60.
RIM sank 10 percent to $10.08. An exodus of customers to Apple Inc.’s iPhone and Google Inc.’s Android devices has taken a toll on sales and profit, putting pressure on management to make changes. An operating loss would be the company’s first since 2004, according to data compiled by Bloomberg.
Facebook lost 0.6 percent to $28.66, after yesterday slipping below $30 for the first time. The recent slide in the stock that has cost investors $25 billion may not end until the shares drop another 20 percent, leaving the company’s valuation on par with competitors that also do business over the Internet.
Facebook, with a market capitalization of $79.1 billion, is trading at 29.5 times the company’s projected 2014 profit of $2.69 billion, data compiled by Bloomberg show. The stock would have to dive to $23.07 to match the average price-to-earnings ratio for the Nasdaq Internet Index based on estimated earnings in the next 12 months, according to the data.
Facebook yesterday extended losses from the worst- performing large initial public offering during the past decade to 24 percent. Investors have pummeled the shares, citing concern over growth prospects for the largest social-networking service. Shareholders filed lawsuits that said the company and its underwriters overpriced Facebook at $38 a share. The IPO gave Facebook a higher multiple than 99 percent of the S&P 500.
“It could fall quite significantly because it was priced at a significant premium,” Sameet Sinha, an analyst at B. Riley & Co., said in a telephone interview yesterday. “Such stocks -- when they go out of favor -- tend to fall before stabilizing.”
Some stocks rallied on analysts’ ratings changes. LinkedIn Corp., the biggest professional-networking website, added 1.7 percent to $101.67 as Citigroup recommended buying the shares. Wynn Resorts Ltd., the casino company founded by billionaire Steve Wynn, advanced 1.3 percent to $106 after being raised to buy at Goldman Sachs Group Inc.