Wall Street set for slippery start on Turkey bomb
Reuters, 11.20.03, 6:06 AM ET
LONDON, Nov 20 (Reuters) - Wall Street was expected to open much lower on Thursday as geopolitical uncertainty re-emerged after explosions rocked Turkey's capital city of Istanbul and ahead of a key earnings report from Walt Disney (nyse: DIS - news - people).
Others posting results include business software maker Novell (nasdaq: NOVL - news - people) and clothes retailer GAP (nyse: NOVL - news - people).
Sentiment was damaged by the explosions in Istanbul, one of which hit the headquarters of London-based HSBC Bank <HSBC.L> and another the British Consulate, killing five and injuring 169 people. The blasts follow Saturday's car bomb attacks on Istanbul synagogues.
"It's bad news coming on top of what happened earlier this week and it raises the uncertainty and the risk premium for equity markets," said Adolf Rosenstock at Nomura International.
By 1030 GMT, U.S. equity index futures signalled a drop of around 0.7 percent for major benchmark indices, after Wall Street closed up on Wednesday.
The Dow Jones industrial average <.DJI> ended up 0.69 percent at 9,690.46, and the technology-heavy Nasdaq <.IXIC> gained 0.95 percent to 1,899.65.
JOBLESS CLAIMS
Strategists said markets will also be watching U.S. weekly jobless claims due at 1330 GMT -- expected at 365,000 from 366,000 previously -- for confirmation that stronger U.S. economic growth was creating the jobs necessary to sustain the recovery.
The Philadelphia Fed survey is also a focus, with the monthly gauge of regional activity forecast at 25.5 in November from 28.0 in October.
"Last minute changes to forecasts see a much higher outcome... Expectations are quite optimistic. Equity markets want to see a fall in jobless claims," said Nomura's Rosenstock.
"So, if the numbers are good, but not fantastic, then the market is likely to react badly, especially after what has happened in Turkey."
Overnight in New York Hewlett Packard (nyse: HPQ - news - people) reported fourth-quarter net income more than doubled, and revenues rose 10 percent after the close.
The results were better than expected, and the computer and printer maker's shares gained about three percent to $22.68 on the Instinet electronic brokerage system from a close of $22.17 on the New York Stock Exchange.
Copyright 2003, Reuters News Service
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