-- US stocks seen inching up after string of declines --
(Recasts, updates futures, adds comment, Wal-Mart)
By Denise Duclaux
NEW YORK, Dec 30 (Reuters) - Stocks are poised to crawl
higher at Monday's opening bell as investors nibble at the
market after a string of declines at the tail-end of a brutal
year for Wall Street.
"There is a short-term oversold condition that hit on
Friday, but the geopolitical situation does not lend itself to
create confidence to put money at risk," said Paul Cherney, a
market analyst at S&P Marketscope. "At any time you could have
a headline that forces short-term traders to become sellers."
Stocks dropped on Friday, sending the blue-chip Dow Jones
industrial average to a two-month low, as North Korea's
decision to expel U.N. nuclear inspectors sparked concerns
about a possible U.S. conflict on two fronts. The Dow had
finished lower for the fourth straight session, while the
technology-loaded Nasdaq and the broad Standard & Poor's 500
index wrapped up a third losing session in a row.
This week starts with the last two trading sessions of 2002
before the stock market shuts on Wednesday -- New Year's Day.
Wall Street is limping toward its first three-year losing
streak since 1939-41, while the Dow is headed to its worst
December performance since 1931.
The Standard & Poor's 500 index futures for March tacked on
4.50 points to 876.30. The Dow Jones industrial futures climbed
40 points to 8,310, while Nasdaq 100 futures crawled 4 points
higher to 1,005.50. The Nasdaq 100 pre-market indicator added
0.38 percent.
Wal-Mart Stores Inc. <WMT.N>, the world's biggest retailer,
may provide some support during the session. The Dow component
said it expected to report an increase of about 3 percent in
December sales at its namesake discount stores open at least a
year, making up for a weak showing from its Sam's Club
warehouse stores. Wal-Mart ticked up to $49.56 before the
market opened after closing at $49.16.
Geopolitical tensions, however, are dogging Wall Street.
The United States ordered more troops, aircraft and ships to
the Gulf for a possible war against Iraq in the new year. The
deployment will at least double the 50,000 U.S. military
personnel already near Iraq.
U.S. Secretary of State Colin Powell said President George
W. Bush, facing the distraction of a separate standoff over
North Korea's nuclear intentions, had taken no decision on
whether to launch an attack on Iraq.
North Korea said on Friday it was expelling U.N.
inspectors monitoring a reactor that could turn out plutonium
for atomic bombs, prompting fresh U.S. demands for the
secretive Communist state to scrap its renewed pursuit of a
nuclear arsenal.
In corporate news, officials representing United Airlines
pilots and flight attendants said on Saturday they would
recommend approving temporary pay cuts to help the bankrupt
carrier slash costs. Parent UAL Corp. <UAL.N> ended at $1.38 on
Friday.
Biotechnology company CV Therapeutics Inc. <CVTX.O> said on
Monday before the open that it had submitted an application
seeking U.S. marketing approval for a new drug to treat the
heart condition angina. Shares closed at $18.85.
Continental Airlines <CAL.N>, the No. 5 U.S. carrier, said
on Friday after the close its mechanics ratified a four-year
labor contract that raises the pay of top-level mechanics by 23
percent. Shares closed at $6.80.
Semiconductor shares may grab some of the spotlight on
Monday. Global semiconductor sales rose 1.3 percent to $12.68
billion in November from $12.51 billion in October, according
to figures published on Monday by the chip industry's main
research group.
Growth decelerated from October when monthly growth was up
1.8 percent on the previous month, the World Semiconductor
Trade Statistics (WSTS) group said.
Chip sales traditionally accelerate in the run-up to the
end-of-year holidays on the back of strong demand by
electronics manufacturers for goods from computers and mobile
phones to toys and shavers.
This year, however, demand from businesses and consumers
for the two categories which consume most of the world's chips,
computers and mobile phones, have remained slack.
(With additional reporting by Doris Frankel)
((Reporting by Denise Duclaux; editing by Gary Hill; Reuters
Messaging denise.duclaux.reuters.com@reuters.net,
646-223-6112))
(C) Reuters 2002. All rights reserved. Republication or redistribution of
Reuters content, including by caching, framing or similar means, is expressly
prohibited without the prior written consent of Reuters. Reuters and the Reuters
sphere logo are registered trademarks and trademarks of the Reuters group of
companies around the world.
nN30205800
.N
Symbols:
US;SPX US;WMT US;UAL US;CVTX US;CAL US;COMP US&DJI US;SPL CA;WMT
30-Dec-2002 14:09:06 GMT
Source RTRS - Reuters News |
