M A R K E T .. S N A P S H O T -- Stocks poised for downside action
By Julie Rannazzisi, CBS.MarketWatch.com
Last Update: 8:09 AM ET Dec 10, 2001
NEW YORK (CBS.MW) -- Shares are set to open lower for a second session on Monday after taking a dip into the minus column Friday on the back of a weaker-than-expected employment report.
All eyes are on Tuesday's Fed meeting, which is expected to produce the 11th rate it of the year and take the overnight fed funds rate -- which is already hovering at a 40-year low -- to a mere 1.75 percent.
The December S&P 500 futures contract gave up 6.70 points, or 0.6 percent, and was trading about 4.90 points below fair value, according to HL Camp & Co. And Nasdaq futures lost 10.00 points, or 0.6 percent while the Dow Jones Indicative Index erased 46 points, or 0.5 percent, to 9,991.
Among shares trading before the official opening bell, oil service behemoth Halliburton (HAL) rose to $13.38 in the pre-open, up $1.38 following a 42-percent tumble on Friday that came after a jury awarded $30 million to plaintiffs in an asbestos case against it. But after the close Friday the company reassured investors that it has "substantial insurance" that it expects will pay most of the judgments. and read
Lehman Brothers' Jeffrey Applegate said the 2001 stock market recession rally off the Sept. 21 lows continues to discount the coming good news. The strategist believes that October appeared to be the cyclical low for the NAPM index, which suggests the recession will be over in several months and that excess equity returns to stocks will be good in the coming year. "While the market is currently at fair value, we expect that further Fed easing, not much higher long-term interest rates and lower inflation will push valuation higher into 2002," Applegate said in a research note.
Government bond prices stabilized and headed higher in early action after a rout on Friday that punished issues across the maturity spectrum.
The 10-year Treasury note was up 20/32 to yield ($TNX) 5.08 percent while the 30-year government bond swelled 26/32 to yield ($TYX) 5.545 percent.
No economic data is due out on Monday. The week's main events include the November producer and consumer price indexes as well as the November retail sales report. Check economic calendar and forecasts.
In the currency sector, the dollar gained 0.3 percent to 125.99 yen while the euro shaved 0.1 percent to 88.82 cents. |
