Before the bell: Slightly lower open ahead of data

Posted Sep 4th 2007 7:45AM by Melly Alazraki
Filed under: Before the Bell, Ford Motor (F), General Motors (GM), AT and T (T), Boston Scientific (BSX), Economic Data

U.S. stock futures turned lower this morning, as investors returned from the Labor Day long weekend. Wall Street will several data points and indicators to go over this week, with some of it likely to be lower, like auto sales (to be released today). Still, there are signs markets are beginning to recover with liquidity improving and expectation the Federal Reserve will cut the Fed funds rate on Sept. 18.

Last week, and especially on Friday stocks gained sharply following two. Fed Chairman Bernanke said the Fed will not be relying on the usual economic data it does when making policy decisions as these indicators are lagging. Implying he and the Fed will be looking forward, many understood that since interest rate changes take a long time to impact the economy, the Fed may be starting the process now with much to gain, but little to lose. Also President Bush came with a plan to help with the problem of mortgage defaults. Is it possible that after a volatile and uncertain August we might start seeing the markets stabilize in September?

Today several economic indicators are due:
The Institute for Supply Management August manufacturing activity index will be released at 10:00 a.m. and is expected to show a decline, but an expansion still.
Also at that time July construction spending is due.
Throughout the day, U.S. automakers will report August auto sales, which are again forecast to drop while sales of Japanese car makers are expected to be higher. According to some analysts, General Motors Corp (NYSE: GM) sales should drop 7%, Chrysler Group 14% and Ford Motor Co. (NYSE: F) sales should drop 16%.

Overseas, Asian stocks were mixed yesterday, continuing the same pattern overnight today. European stocks are also mixed with Germany's Dax index showing gains but London's FTSE 100 showing losses.

In corporate news:

Boston Scientific (NYSE: BSX) and could see movement today after a group of cardiologists in Vienna presented research that showed drug-coated heart stents may not increase the risk of blood clots as much as previously thought. Johnson & Johnson (NYSE: JNJ) also makes drug stents.

AT&T (NYSE: T) announced a service today that would enable parents to put limits on their kids' cell phone, limits such as when a wireless phone can make and receive calls and to whom, restrictions on text messages and talk time, and set allowances for ring tones and other downloads.

More corporate news: Before the bell: SNE, AAPL, MAT, GE, SBUX, MRK ...

Tags: bsx, f, gm, t

Get the latest on cars and trucks
from GM and all brands at AOL Autos.

Reader Comments (Page 1 of 1)

9-04-2007 @ 8:58AM

justpicky said...

The Fed , President and many other companies can help the economy if they only put there minds to it .
I blame 60 % of this on Mortgage Companies, 25% on the President , and 15% on Fed. Oh there's others who should take blame too , example , Companies who's moving there jobs to foreign countries where the Average citizen who's looking for a job because of being laid off and again companies leaving the country ...

"THE TRUE AMERICANS are the ones who's hard at work , who takes pride and devoted to there jobs . These are the people who companies should be pride of. They work harder , longer and hardly takes vacation just to make a living , and I'm not talking luxury living , just to get by pay there bills .

There's many other "true americans " who's laid off and looking for a job , I think there's companies out there who should hire these people . Again they're the hardest working people .

People in United States are not LAZY .........
WHERE THE MEDIA RECIEVE THERE INFORMATION , WAS WRONG ........