M A R K E T .. S N A P S H O T -- Markets set for some upside
Greenspan remarks set favorable backdrop
By Julie Rannazzisi, CBS.MarketWatch.com
Last Update: 8:36 AM ET Jun 4, 2001
NEW YORK (CBS.MW) -- The major averages are looking to build on gains posted late last week once trading for the new week kicks off Monday.
June S&P 500 futures gained 2.00 points, or 0.2 percent, and were trading roughly 5.00 points above fair value while Nasdaq futures put on 18.50 points, or 1.0 percent.
Helping to set a favorable tone for the market were remarks from Alan Greenspan, who spoke via satellite link at an International Monetary Conference in Singapore.
The Fed chief said inflation is not a significant problem for the U.S. economy. He added that the strong dollar and the inability of businesses to pass along higher prices to consumers are keeping higher prices under wraps, Dow Jones said.
Greenspan also commented that pressure on companies' profit margins should ease as energy prices have fallen since the first quarter.
In shares seeing activity before the official opening bell, networking giant Cisco Systems (CSCO) traded in line with Friday's closing level. A report in the United Kingdom's Sunday Business raised speculation that Cisco is considering a $17 billion bid for the U.K. telecom equipment maker Marconi (MONI).
Elsewhere, Trim Tabs reported that U.S. equity funds lost an estimated $2.3 billion in the two days ending May 31 for a monthly rate of negative $16.5 billion. May inflows to all equities stood at a disappointing $5.8 billion.
The fund flow tracker also reported that stock market liquidity remained negative last week at negative $1.8 billion. Liquidity has been negative -- with the exception of one week -- since the new offering calendar came roaring back at the end of April. May new offerings totaled $40 billion -- a record. The difference between the current pace and the frenzied one of last year is that the bulk of new shares are now disguised as convertible bonds. Trim Tabs said it remains bearish, with the only bullish potential being an expected pickup in new cash takeovers and buybacks over the rest of this year.
Bond prices opened a sliver higher, with the 10-year Treasury note up 3/32 to yield ($TNX) 5.355 percent and the 30-year government bond gaining 2/32 to yield ($TYX) 5.70 percent.
No data is scheduled for release on Monday. Among the scant reports on tap this week are the NAPM non-manufacturing index, April factory orders, the first-quarter productivity reading and April consumer credit. View Economic Preview and economic calendar and forecasts.
In the currency space, dollar/yen added 0.5 percent to 119.74 while euro/dollar climbed 0.9 percent to 0.8531. |
