NEW YORK, March 18 (Reuters) - U.S. stocks are expected to open lower on Thursday, pressured by concerns about interest rates, but the market could turn around on tame consumer price index data, which will be released this morning.
The U.S. Consumer Price Index (CPI) for February, to be released at 0830 EST/1330 GMT, is seen rising 0.1 percent overall and 0.2 percent excluding food and energy items.
''I think if we get a good CPI number today, my anticipation is that you will see Thursday as the day that we begin to make another assault on 10,000,'' said Barry Hyman, market strategist for Ehrenkrantz, King Nussbaum Inc.
The Dow Jones Industrial Average closed lower Wednesday, retreating further from the 10,000 milestone it breached only briefly. On Wednesday, the Dow fell 51.06 points, or 0.51 percent, to 9879.41 on volume of 750 million shares.
An array of factors, including Federal data that showed wage demand was on the rise in strained labor markets, caution ahead of the Friday's looming so-called triple witching hour expirations, and slumping overseas markets fostered the weak morning sentiment.
In addition, the rapid rise to 10,000, which saw the market jump some 800 points in two weeks, could serve as a psychological barrier to futher gains, market watchers said.
''I think we simply went too far to fast, I think it was just too crazy,'' said Larry Wachtel at Prudential Securities. Now we are just coming into a more realistic phase.
The announcement that AMR Corp.(NYSE:AMR - news), the parent of No. 2 U.S. airline American Airlines, will miss Wall Street estimates for its first quarter profit, due to a sick out by pilots, could add downward pressure to the market. |
