M A R K E T .. S N A P S H O T -- Stocks look to snap 4-day down streak
Cisco slips; Sun Micro edges up
By Julie Rannazzisi, CBS.MarketWatch.com
Last Update: 7:33 AM ET Aug 31, 2001
NEW YORK (CBS.MW) -- The stock market is looking to break a four-day losing streak in what may prove to be another uphill battle on Friday. Investors, in fact, continue to display a reluctance to take on fresh positions in the absence of signs that the economy is beginning to turn.
September S&P 500 futures gave up 0.80 point and were trading about 2.30 points below fair value, according to HL Camp & Co. And Nasdaq futures lost 9.50 points, or 0.7 percent.
Among shares seeing activity before the official open, Cisco Systems (CSCO) lost 6 cents to $15.95 in Instinet while Sun Microsystems (SUNW) -- hit with an 18-percent decline Thursday after issuing a profit warning -- edged up 3 cents to $11.10.
In the Treasury sector, prices returned to their winning ways, gaining more traction after succumbing to some mild profit taking on Thursday.
Yields continue to plumb levels not seen in quite some time: a 5-year note recently hit its lowest yield in more than 2-1/2 years; yields on 2-year notes remain close to all-time lows; and ten-year note yields are close to their lowest levels since January 1999.
The 10-year note was up 3/32 to yield ($TNX) 4.80 percent while the 30-year government bond added 5/32 to yield ($TYX) 5.38 percent.
On Friday's economic agenda: Factory orders, seen declining 0.4 percent; the August Michigan Consumer Sentiment Index; and the Chicago Purchasing Mangers Index. Check economic calendar and forecasts.
In the currency sector, the dollar gave back 0.7 percent to 118.57 yen while the euro inched up 0.1 percent to 91.67 cents.
Economists at the International Monetary Fund warned of significant danger of a global recession similar to the early 1980s and early 1990s. A draft version of the IMF's World Economic Outlook forecast the world economy to grow 2.8 percent in 2001 but indicated there could be a much deeper and more protracted global downturn, according to the Financial Times. The biggest risk is seen in the U.S., which could produce slower-than-expected growth this year and next. |
