Wall Street seen mixed; Intel, ECB eyed
Thursday March 6, 6:28 am ET
LONDON, March 6 (Reuters) - Wall Street looked set for a mixed open on Thursday as fears of an imminent war in Iraq weighed on markets, with chip stocks in focus ahead of a mid-quarter update from Intel Corp. (NasdaqNM:INTC - News).
By 1053 GMT, equity index futures indicated the Dow Jones industrial average (CBOT:^DJI - News) would open 13 points lower, while the tech-laced Nasdaq (NasdaqSC:^IXIC - News) was set to rise 0.2 percent.
Traders were focusing on the European Central Bank interest rate decision at 1245 GMT. It is expected to cut its key interest rate by 50 basis points.
"The decision will keep the euro and U.S. dollar exchange rate firmly in the spotlight and the betting here is that any U.S. rally could be short-lived," said Jim Morrison at Financial Spreads.
The Iraq crisis continued to weigh on investors' minds as dealers warned the global economy was in danger of grinding to a halt while uncertainty remains.
"While we have these issues lurking in the background, it will be hard for the market to move up," said Tom Hougaard at City Index.
Tensions over North Korea also continue to simmer. A report that North Korea was preparing to launch a mid-range missile unsettled investors as U.S. bombers landed on the Pacific island of Guam.
Chip stocks will be a key feature ahead of Intel's update after the close, as investors look for signs of a recovery in the sector.
STABLE DEMAND
Analysts are forecasting revenues for the world's biggest chipmaker at or above the mid-point of a previously forecast range, a sign that demand for chips is stable.
Intel had been projecting revenue of $6.5 billion to $7 billion for the first quarter, which is down from the holiday shopping-fuelled fourth quarter.
National Semiconductor Corp. (NYSE:NSM - News), whose chips are used in mobile phones and computer displays, also reports earnings, as well as the world's second largest advertising company Interpublic Group (NYSE:IPG - News).
Market players will keep an eye on U.S. jobless claims at 1330 GMT and factory orders for January, expected at 1500 GMT ahead of key employment data on Friday.
In other corporate news, Nestle (NESZn.VX) said talks to get U.S. approval for a takeover of Dreyer's Grand Ice Cream Inc. (NasdaqNM:DRYR - News) were continuing and declined comment on reports it would need to sell its Starbucks ice cream brand.
The Wall Street Journal Europe reported that Nestle has offered to offload the Starbucks brand -- licensed from the listed coffee shop chain (NasdaqNM:SBUX - News) -- to get the deal done after U.S. regulators moved to block the transaction.
Meanwhile, Northern Irish drugmaker Galen Holdings Plc said it had agreed to buy three healthcare drugs from Pfizer Inc (NYSE:PFE - News) for up to $484 million.
Handheld computer maker Palm Inc. (NasdaqNM:PALM - News) may feature following a report Sony Corp (Tokyo:6758.T - News) would be interested in buying Palm's software business if it was up for sale. A Sony spokesman declined comment.
General Dynamics Corp. (NYSE:GD - News) shares may rise after the defense contractor said it would boost its quarterly dividend by 6.6 percent to 32 cents per share. |
