NEW YORK NEW YORK, Oct 15 (Reuters) - U.S. stock index futures fell on
Wednesday as investors worried that efforts to ease the credit crisis would not
avert a recession, overshadowing solid profits from Coca-Cola Co, a bellwether
for consumer spending.
Investors were cautious before a deluge of economic reports, including
September retail sales, and a speech by Federal Reserve Chairman Ben Bernanke.
A report on September retail sales is due at 8:30 a.m., (1230 GMT), along
with a report on the Producer Price Index, an inflation gauge, for September.
The Fed will release a manufacturing survey for New York state for October.
Ben Bernanke is scheduled to speak to the Economic Club of New York at
12:15 p.m. (1615 GMT).
The Fed's Beige Book, which provides a snapshot of business conditions
around the country, is due at 2 p.m. (1800 GMT).
Investors fear the data and company outlooks might point to a worsening
economic picture and recession fears will derail an attempted recovery by stocks
for a second straight day.
"The path of least resistance in this market is down," said Arthur Hogan,
chief market analyst at Jefferies & Co in Boston.
"I think people are realizing there are interesting tools being put in
place to deal with the credit crisis, but there's going to be a lag time to get
them to work."
Hogan said most companies will have to lower their profit estimates for
2009.
S&P 500 futures dropped 14 points and were below fair value, a formula
that evaluates pricing by taking into account interest rates, dividends and time
to expiration on the contract. Dow Jones industrial average futures dropped 124
points, and Nasdaq 100 shed 9 points.
Only two days ago the market soared and the Dow had its biggest one-day
point gain ever.
Shares of technology bellwether Intel Corp jumped 4 percent before the
bell. For details, see
But the company's chief financial officer said on Tuesday
that even though his company had stronger-than-anticipated profit, he is
cautious in light of the turbulent financial environment. [ID:nN14239388].
Coca-Cola's shares were up nearly 5 percent before the bell after the
world's largest soft-drinks maker posted a third-quarter profit above Wall
Street's forecasts.
U.S. stocks fell on Tuesday on fears the global economy may not escape a
recession. Shares of technology and consumer companies were battered, eclipsing
a government rescue plan for banks.
(Editing by Kenneth Barry)
((Ellis.Mnyandu@thomsonreuters.com; +1 646 223 6085; Reuters
Messaging:ellis.mnyandu.reuters.com@reuters.net)) Keywords: MARKETS STOCKS
Chuck Mikolajczak
cm
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