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NEW YORK (AP) - U.S. stocks headed for a moderately lower opening on Friday as investors awaited readings on consumer sentiment and industrial production.
The preliminary Reuters/University of Michigan survey on consumer sentiment for February is due in the first hour of trading. The findings can help illuminate how consumers are feeling about the economy.
Consumers uneasy about the future can grow more reluctant to open their wallets - an alarming prospect for Wall Street as consumer spending accounts for more than two thirds of economic activity.
Wall Street is also awaiting data on industrial production, which could indicate the degree to which the economy is slowing.
A slowing economy remains foremost in investors’ minds. In testimony before the Senate Banking Committee on Thursday, Federal Reserve Chairman Ben Bernanke issued a sobering but not entirely unexpected prediction that economic growth in much of 2008 is likely to be “sluggish” before gathering strength later in the year. He also warned further losses were likely at banks from soured mortgages.
Stocks lost more than 1 percent Thursday, a day after putting up a gain of similar magnitude. The back-and-forth days, which have become almost commonplace, illustrate the uncertainty that has gripped Wall Street in recent months.
Dow Jones industrial average futures fell 63, or 0.51 percent, to 12,333. Standard & Poor’s 500 index futures fell 7.80, or 0.58 percent, to 1,343.30, while Nasdaq 100 index futures fell 13.50, or 0.75 percent, to 1,780.75.
Government bond prices rose. The yield on the benchmark 10-year Treasury note, which moves opposite its price, fell to 3.77 percent from 3.82 percent late Thursday. The dollar wax mixed against other major currencies, while gold prices rose.
Light, sweet crude oil rose 36 cents to $95.82 in premarket electronic trading on the New York Mercantile Exchange.
Overseas, Japan’s Nikkei stock average finished off 0.03 percent. In afternoon trading, Britain’s FTSE 100 fell 1.37 percent, Germany’s DAX index fell 1.61 percent, and France’s CAC-40 fell 1.59 percent.
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by AOL

U.S. stocks opened mostly lower Friday, pointing to what would be another weekly decline, as worries about the U.S. economy returned to the forefront.

“With the economy either in recession or very close to being in one, we favor buying bonds on sell-offs,” said Tom DiGaloma, head of Treasury trading at Jefferies & Co.

The Dow Jones Industrial Average (DJI) fell 73 points to 12,205, with 22 of its 30 components falling in early action.

Broader indexes were mixed.

The S&P 500 (SPX) declined 2.86 points to 1,334.05, while the technology- laden Nasdaq Composite (RIXF) climbed 9.72 points to 2,302.75.

Friday brings more talk from Federal Reserve officials, on the heels of a speech in Hawaii late Thursday by Janet Yellen, president of the Federal Reserve Bank of San Francisco. Yellen, who isn’t a voting member of the Federal Open Market Committee, said the U.S. would probably avoid a recession but experience lackluster economic growth in coming months.

Since the middle of September, the Fed has cut its target lending rate to 3% from 5.25% as signs of economic trouble heightened. The Fed’s moves included an emergency cut of fully three quarters of a percentage point in late January.

December wholesale inventories figures are due out at 10 a.m. Eastern.

The dollar was little moved against rivals, and yields on 10-year Treasury notes fell to 3.7%.

In commodities trading, oil futures added 94 cents to $89.05 a barrel and gold futures rose $6.60 to stand at $916.60 an ounce.

Among Dow stocks, Coca-Cola Co. (KO) won an upgrade to outperform from peer perform at Bear Stearns, with the broker citing the good results at PepsiCo ( PEP) and other global consumer companies. Coca-Cola’s shares made early gains.

Fellow blue chip McDonald’s (MCD) also moved higher, gaining in the wake of January sales results.

Meanwhile, shares of MBIA Inc. (MBI) fell 0.6% at the open, lower after the world’s largest bond insurer, which is trying to hang onto its AAA rating, priced $1 billion in common shares to raise capital.

McAfee (MFE) rose 9.4% ater the software maker’s 63% quarterly profit drop proved less steep than anticipated.

Alcatel-Lucent (ALU) posted higher fourth-quarter revenue than forecast, though the telecom-equipment maker warned of a first-quarter operating loss and halted its dividend. Shares opened lower.

An explosion and a fire at an Imperial Sugar (IPSU) refinery has left dozens of people injured, with six workers still missing, according to news service reports.

Overseas, the Nikkei 225 ended 1.4% lower, hurt by disappointing machinery orders data. But most European stocks rebounded, with the DAX 30 up 0.2% in Frankfurt.

U.S. stocks climbed on Thursday as bargain hunters returned to the market, hit by three days of losses that left the Nasdaq in bear-market territory.

(END) Dow Jones Newswires 02-08-08 0958ET Copyright (c) 2008 Dow Jones & Company, Inc.
by CNN

Feb. 8, 2008 (Thomson Financial delivered by Newstex) —

NEW YORK (AP) - Stocks were poised to open lower Friday in what would be the fourth loss in five sessions as investors awaited any clues about the economy’s direction.
Concerns about a recession were likely to again influence trading after Wall Street managed to rise Thursday for the first time this week. San Francisco Federal Reserve President Janet Yellen said Thursday that the possibility of such a contraction can’t be ruled out, and other central bank officials are scheduled to speak Friday.
Investors are also waiting for more economic data. U.S. wholesale trade inventories due at 10 a.m. EST might show distributors in December limited their stockpiles amid weak retail sales.
Dow Jones industrial average futures fell 78, or 0.61 percent, to 12,200. Standard & Poor’s (NYSE:MHP) 500 index futures fell 10.70, or 0.80 percent, to 1,329.50, and Nasdaq 100 index futures fell 12.75, or 0.72 percent, to 1,754.25.
The dollar was mixed against other major currencies, while gold prices rebounded.
Light, sweet crude oil rose 55 cents to $88.66 a barrel in premarket trading on the New York Mercantile Exchange.
In corporate news, McAfee Inc. (NYSE:MFE) was expected to move higher after the software maker reported better-than-expected fourth-quarter profit late Thursday.
Alcatel-Lucent (NYSE:ALU) was expected to rise after the telecom equipment maker reported higher fourth-quarter revenue than forecast. However, it warned of a first-quarter operating loss and suspended its dividend.
Weyerhaeuser Co. (NYSE:WY) (TSX:WYL) swung to a fourth-quarter loss as the deteriorating U.S. housing market cut into demand for lumber — a downturn the paper and wood products company expects will continue through 2008. Earnings are expected later in the session from Chevron Corp. (NYSE:CVX) and Beckman Coulter Inc. (NYSE:BEC)
Bond insurer MBIA Inc. (NYSE:MBE) (NYSE:MBI) , which has been trying to raise capital to maintain its crucial ‘AAA’ financial strength rating, said late Thursday it has boosted the size of a public stock offering to $1 billion from the $750 million it announced one day earlier.
Overseas, Japan’s Nikkei average closed down 1.44 percent. In Europe, Britain’s FTSE 100 fell 0.10 percent, Germany’s DAX index rose 0.17 percent, and France’s CAC-40 fell 0.16 percent.

by CNN

Feb. 12, 2008 (Thomson Financial delivered by Newstex) —

NEW YORK (AP) - U.S. stocks headed for a higher open Tuesday after General Motors Corp. (NYSE:GM) said it is offering a fresh round of buyouts and billionaire investor Warren Buffett offered to help out troubled bond insurers.
GM said it is offering buyouts to all 74,000 of its U.S. hourly workers who are represented by the United Auto Workers. GM also reported losses of $38.7 billion in 2007, the largest annual loss for an automotive company.
In an interview on CNBC, Buffett said his Berkshire Hathaway (NYSE:BRK A) holding company offered a second level of insurance on up to $800 billion in municipal bonds. He made the reinsurance offer to bond insurers Ambac, MBIA and FGIC.
Investors also appeared pleased by a plan by the six largest mortgage lenders to help at-risk borrowers with all types of mortgages retain their homes. The plan, called Project Lifeline, is expected to be announced Tuesday by the Treasury Department and the Department of Housing and Urban Development, a person familiar with the plan told The Associated Press. The person confirmed earlier news reports about the plan but spoke on condition of anonymity because it had not yet been made public.
Adding to investors’ somewhat upbeat mood, Credit Suisse Group (NYSE:CS) sharply reduced its estimate of how much exposure it has to subprime mortgage debt. Switzerland’s second largest bank said its debt tied to subprime mortgages, those given to borrowers with poor credit, fell to 1.6 billion francs ($1.45 billion) from 3.9 billion francs at the end of September. Its fourth-quarter net profit fell 72 percent because of write-downs.
Stock futures rose a day after Wall Street achieved moderate gains. The increase Monday followed a week that saw stocks end sharply lower.
Dow Jones industrial average futures rose 87, or 0.71 percent, to 12,325. Standard & Poor’s (NYSE:MHP) 500 index futures rose 10.10, or 0.75 percent, to 1,348.30. Nasdaq 100 index futures gained 12.50, or 0.70 percent, to 1,809.75.
Bond prices fell after Buffett’s announcement. The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 3.68 percent from 3.63 percent late Monday.
The dollar was mixed against other major currencies, while gold prices fell.
Light, sweet crude fell 87 cents to $92.72 per barrel in premarket electronic trading on the New York Mercantile Exchange.
In corporate news, GM’s fourth-quarter loss totaled $722 million, or $1.28 per share, in the fourth quarter, compared with net income of $950 million a year earlier. Much of the loss relates to $622 million in costs tied to restructuring at Delphi Corp. (OOTC:DLPIV) (OOTC:DPHIQ) , GM’s former parts business.
The bond insurer news pleased investors. Buffett says one firm rejected his offer and he is still waiting to hear from the other two.
Bond insurers write policies that promise to cover payments to bondholders if the entity that issued the bonds defaults. Reinsurance provides a second level of insurance on those bonds.
The offer would only back municipal bonds, Buffett says, and not other risky and complicated financial instruments.
Diversified manufacturer 3M (NYSE:MMM) said late Monday it would pay a quarterly dividend of 50 cents, an increase of 4.2 percent over its previous payout. The decision by 3M, which makes products such as Scotch tape and Post-It notes, to boost its dividend is welcome news for investors amid a time of economic uncertainty.
Overseas, Japan’s Nikkei stock average closed up 0.04 percent and Hong Kong’s Hang Seng index rose 1.35 percent. In afternoon trading, Britain’s FTSE 100 rose 1.52 percent, Germany’s DAX index rose 1.82 percent, and France’s CAC-40 advanced 2.26 percent.

by CNN

U.S. stocks turned mostly lower Friday as worries persisted about the economy, with technology among the sole bright spots, lifted in part by online retailer Amazon.com Inc.’s buyback plan.

“Going by market action, we have not fully discounted the strong probability of a recession,” said Al Goldman, chief market strategist at A.G. Edwards. Listen to Goldman.

The Dow Jones Industrial Average (DJI) was down 59.5 points to 12,187.5, off session lows that had the blue-chip index sliding nearly 100 points.

Of the Dow’s 30 components, 21 posted losses, fronted by American Express Co. (AXP), down 5.1%.

Blue-chip gains were led by McDonald Corp. (MCD), up 2.5%, in the wake of sales results that had the fast-food giant continuing its growth spurt in January. .

Another blue chip, Coca-Cola Co. (KO), climbed 1.6% after its upgrade to outperform from peer perform at Bear Stearns, with the broker citing solid results at PepsiCo (PEP) and other consumer companies with a global reach.

Other stocks advancing on the blue-chip index included technology shares, with Microsoft Corp. (MSFT) up 1.5% and Hewlett-Packard Co. (HPQ) up 2.9%.

The S&P 500 (SPX) dropped 5.89 points to 1,331.02 by early afternoon. The technology-laden Nasdaq Composite (RIXF) remained in positive turf, up 7 points to 2,300.03, boosted by plans by Amazon.com (AMZN) to buy back as much as $1 billion worth of common stock.

Amazon shares advanced 3.3%.

CNet Networks Inc. (CNET) also helped lift the Nasdaq, with the media company recently up 4.3% amid speculation that Google Inc. might be looking to buy a stake.

Volume on the New York Stock Exchange neared 692 million, and declining stocks topped those advancing about 3 to 2. On the Nasdaq, 1.1 billion shares exchanged hands, and advancers outran declining issues, also by roughly 3 to 2.

Treasury prices rallied, sending yields on 10-year Treasury notes down to 3.669%.

“With the economy either in recession or very close to being in one, we favor buying bonds on sell-offs,” said Tom DiGaloma, head of Treasury trading at Jefferies & Co.

On the New York Mercantile Exchange, oil futures added $3.54 to trade at $ 91.65 a barrel, and gold futures climbed $12.5 to stand at $922.5 an ounce.

Fed factors

In economic news, the Commerce Department reported inventories at U.S. wholesalers climbed 1.1% in December, the largest gain since August 2006. .

Friday was also set to bring more talk from Federal Reserve officials, on the heels of a speech in Hawaii late Thursday by Janet Yellen, president of the Federal Reserve Bank of San Francisco. Yellen, who isn’t a voting member of the Federal Open Market Committee, said the U.S. would probably avoid a recession but experience lackluster economic growth in coming months.

Since the middle of September, the Fed has cut its target lending rate to 3% from 5.25%, as signs of economic trouble heightened. The Fed’s moves included a large emergency cut of three-quarters of a percentage point in late January.

“The U.S. and global economies are looking decidedly shakier, in terms of both the tone of the high-frequency data flow and the fault lines in financial markets,” said Ethan Harris, an economist at Lehman Brothers

Other issues

Shares of MBIA Inc. (MBI) were up 1% after the world’s largest bond insurer — which is trying to hang on to its AAA rating — priced $1 billion in common shares to raise capital. .

McAfee (MFE) rose 7.9% after the software maker’s 63% quarterly profit drop proved less steep than anticipated.

Alcatel-Lucent (ALU) posted higher fourth-quarter revenue than forecast, though the telecom-equipment maker warned of a first-quarter operating loss and halted its dividend. Shares opened lower.

An explosion and a fire at an Imperial Sugar (IPSU) refinery has left dozens of people injured, with six workers still missing, according to news reports.

Overseas, the Nikkei 225 ended 1.4% lower, hurt by disappointing machinery orders data. But European stocks retained gains. .

U.S. stocks had climbed Thursday as bargain hunters returned to the market, hit by three days of losses that left the Nasdaq in bear-market territory.

(END) Dow Jones Newswires 02-08-08 1316ET Copyright (c) 2008 Dow Jones & Company, Inc.
by CNN