Futures Suggest Lower Wall Street Open
By TIM PARADIS
AP Business Writer
NEW YORK | U.S. stock futures lost ground Tuesday as concerns mounted about the viability of subprime mortgage lenders and whether their troubles would spread to other parts of the economy.
While stocks managed to log gains Monday by focusing on a string of acquisitions, the difficulties facing companies that make loans to those with poor credit seemed to reassert themselves Tuesday.
New Century Financial, which saw trading in its shares halted throughout Monday's session, disclosed more detail on the raft of financial hurdles it is facing. Accredited Home Lenders Holding Co. stirred further concern about an implosion in the sector Tuesday after saying it is exploring ways to boost liquidity, which it needs to retain or sell loans it originates.
U.S. markets, which often initially take cues from those overseas, could find mostly red arrows abroad. Stocks in Asia fell overnight, while those in Europe slid as Wall Street appeared headed for a lower opening.
Dow Jones industrials futures expiring in June fell 55 points, or 0.44 percent, to 12,356. Standard & Poor's 500 index futures declined 5.80, or 0.41 percent, to 1,413.70, while Nasdaq 100 index futures fell 7.75, or 0.44 percent, to 1,770.50.
Economic and earnings data due Tuesday might offer investors some insights into whether the overall economy remains stable. Investors expect Commerce Department data will show retail sales rose 0.3 percent in February from January.
The International Council of Shopping Centers also reports on chain store sales, and Redbook releases its retail sales index. Last week, individual retailers reported lackluster clothing sales for February.
Goldman Sachs Group Inc. kicks off a string of earnings reports from the big Wall Street brokerages and Kroger Co. and Revlon Inc. are scheduled to weigh in with their fourth-quarter results.
Texas Instruments Inc., the biggest maker of chips for mobile phones, tightened its first-quarter profit and sales forecasts after the closing bell Monday and appeared to disappoint Wall Street. While the company's figures were at the center of its previous forecasts, a pullback could hurt technology shares Tuesday.
Concerns about subprime lenders grew Tuesday after New Century said regulators subpoenaed documents under inquiries into accounting errors that inflated the value of the company's loan portfolio. The Irvine, Calif., company said the Securities and Exchange Commission and the U.S. Attorney's Office for the Central District of California began the investigations two weeks ago.
As the setbacks for subprime lenders increased, business leaders gathered at a Washington conference at the behest of U.S. Treasury Secretary Henry Paulson, who is reviewing how U.S. capital markets can remain competitive globally and whether regulation has grown too onerous.
wilmingtonstar.com
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