US futures reverse course as HP takes $8.8B hit

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Associated Press

Posted on November 20, 2012 at 9:33 AM

Updated Tuesday, Nov 20 at 9:34 AM

NEW YORK (AP) — Stock futures are sliding after the best day on major indexes in months after Hewlett-Packard revealed that it was the victim of a massive fraud related to an acquisition and took a huge hit to its latest quarterly earnings.

After a mostly positive morning, the Dow Jones industrial futures are now down 23 points to 12,715. The broader S&P futures have slipped 1.8 points to 1,380.70. Nasdaq futures are down 1 point to 2,584.50.

Hewlett-Packard said Tuesday that a British company it bought for $10 billion last year lied about its finances and accusing Autonomy Corporation PLC, of "serious accounting improprieties, disclosure failures and outright misrepresentations." It took an $8.8 billion charge against its earnings, mostly due to the deal.

The Commerce Department is releasing its new home construction numbers Tuesday. Economists expect a slowdown, possibly because of disruptions from Superstorm Sandy.

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