Investing.com - U.S. stock futures pointed to a lower open on Thursday, as market sentiment remained under pressure amid concerns over events in Ukraine, while investors eyed Federal Reserve Chair Janet Yellen's upcoming testimony.
Ahead of the open, the Dow Jones Industrial Average futures pointed to a 0.34% decline, S&P 500 futures signaled a 0.37% drop, while the Nasdaq 100 futures indicated a 0.22% fall.
Investors remained cautious amid reports that Russian President Vladimir Putin ordered 150,000 Russian troops to begin military exercises in central and western Russia, near the border with Ukraine.
The move prompted the United States to warn Russia that it would be a "grave mistake" to intervene militarily.
Market participants were also looking ahead to testimony by Federal Reserve Chair Janet Yellen later Thursday, after a recent spate of disappointing U.S. economic indicators raised some doubts over whether the central bank will maintain the current pace of reductions to its stimulus program.
J.C. Penney was expected to be active, as shares soared 11.24% in pre-market trade after the retailer forecast an increase in annual revenue and margin expansion, prompting Chief Executive Officer Mike Ullman to predict its turnaround will be completed this year.
Tesla Motors Inc. was also likely to be in focus, after he luxury electric-car maker announced on Wednesday that it is selling at least $1.6 billion of convertible notes to finance the construction of what co-founder Elon Musk bills as the world's largest battery factory.
The project could reportedly trigger a bidding contest between states eager for the 6,500 jobs the $5 billion investment could create. Shares in the automaker surged 4.62% in early trading.
Other stocks likely to be in focus included LKQ, Mylan Labs, Ocwen and Sempra Energy, scheduled to report quarterly earnings later in the day.
Across the Atlantic, European stock markets were sharply lower. The EURO STOXX 50 tumbled 1.30%, France’s CAC 40 retreated 0.81%, Germany's DAX plummeted 1.33%, while Britain's FTSE 100 declined 0.88%.
During the Asian trading session, Hong Kong's Hang Seng Index jumped 1.74%, while Japan’s Nikkei 225 Index slid 0.32%.
Later in the day, the U.S. was to release data on durable goods orders and the weekly report on initial jobless claims.