NEW YORK (AP) - Stock futures were narrowly mixed Monday as investors
tried to assess whether the Federal Reserve will keep lowering interest rates.
Wall Street rallied Friday after the Fed cut the discount rate, the interest
it charges on its loans to banks, and said it would stand ready to make further
moves to keep credit market losses from hurting the economy. The Fed is not
scheduled to meet formally until Sept. 18, and investors are expected to remain
jittery until then.
Analysts said Monday would likely show the real impact of the Fed's moves,
as much of the previous session's rally was pinned on big institutional
investors like hedge funds buying shares to cover their positions. Some
investors had been shorting the market -- betting stocks would move lower -- and
were caught off guard when the central bank cut the discount rate.
Ahead of the U.S. market opening, European and Asian stocks moved higher
Monday, led by financial stocks, as investors hoped the worst may be over for a
global downturn in equities.
Dow futures expiring in September rose 30, or 0.22 percent, to 13,135, while
S&P 500 futures rose 2.70, or 0.19 percent, to 1,452.60. Nasdaq 100 index
futures fell 0.50, or 0.03 percent, to 1,891.75.
Overseas, Britain's FTSE 100 rose 0.8 percent, Germany's DAX index gained
0.4 percent, and France's CAC-40 rose 1.1 percent. In Asia, Japan's Nikkei stock
average advanced 3 percent. Hong Kong's Hang Seng Index rose 5.93 percent, while
the often-volatile Shanghai Composite Exchange surged 5.33 percent.
This week will be light on economic reports, which makes it a bit more
difficult for investors to assess what the Fed might do at its rate-setting
meeting. The Conference Board on Monday will report on leading economic
indicators. The index is expected to rise 0.3 percent for July, compared with
June's 0.3 percent decline.
Also Monday, the Chicago Federal Reserve releases its July index on national
business activity.
U.S. automobile makers might trade heavily after members of a union
representing about 2,000 of auto parts maker Delphi Corp.'s hourly workers voted
to ratify a new four-year contract with the auto parts supplier, the union said
late Saturday.
Lowe's Cos., the No. 2 U.S. home improvement chain, reported second-quarter
profit surpassed Wall Street projections. The company said it will open 40 new
stores during the current quarter, and believes sales will rise 6 percent for
the year.
Positive results and outlooks from retailers could give Wall Street a better
idea about consumer spending. Results will also give a better idea about the
health of the housing industry.
Nasdaq Stock Market Inc. announced it will consider selling a 31 percent
stake it has in the London Stock Exchange that was accumulated when the U.S.
exchange attempted a hostile takeover. The largest U.S. electronic exchange is
now in the midst of fending off a rival bid from the Dubai bourse to acquire
Nordic exchange operator OMX.
Oil prices fell 62 cents to $71.36 in premarket trading on the New York
Mercantile Exchange. Investors have been wary as Hurricane Dean heads toward
Mexico, where major oil companies have already begun battening down oil rigs in
the Gulf of Mexico.
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