U.S. stock futures were mildly higher this morning, indicating a similar higher start for stocks as bulls aim to extend the rally that started last week following the Federal Reserve's half point rate cut. However, the dollar fell to another record low against the euro ahead of tomorrow's consumer confidence and housing reports as traders speculate U.S. economic growth is slowing. Inflation and economic growth concern will likely cause investors to be more cautious today.On Friday, U.S. stocks ended higher after Oracle and Nike reported positive earnings results. The Dow industrials ended 0.39% higher, the Nasdaq Composite 0.64% and the S&P 500 0.59% higher. For the week, the Dow Jones industrial average rose 2.9% last week, the S&P 500 2.8% and the Nasdaq composite 2.7%.
While today there are no economic reports due, this week will be full of them and investors, who put pressure on the Fed to lower rates, will scrutinize the reports to see if there's indication of inflation or if it is under control. Concern about the U.S. economy and where it is headed continues and this week will bring forth some data that could help determine if the economy isn't heading for recession. While indication of inflationary pressures may not allow the Fed to lower rates again, bond traders predict that the Federal Reserve will lower interest rates again before the end of the year as the economy comes to a standstill.
Overseas, Asian stocks finished mostly higher in the markets that were open today. European stocks are mixed.In corporate news, General Motors (NYSE: GM) is facing a strike deadline set for 11 a.m. EDT today. The UAW, which set the deadline, represents 73,000 GM workers. Talks are ongoing.
Staying in the auto industry, Ford's (NYSE: F) CEO Mulalli said the automaker is in talks with potential buyers of the company's Jaguar and Land Rover brands.
EMC Corp. (NYSE: EMC) was upgraded to Buy from Hold by Citigroup and to Outperform from Peer Perform at Bear Sterns due to VMWare. Stock is up nearly 2% in premarket action.
Motorola (NYSE: MOT) shares are also up about 1.2% in premarket trading (7:09 a.m.) after being upgraded by RBC Capital Markets to Outperform from Sector Perform as trends improve in its handset division.
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Reader Comments (Page 1 of 1)
9-24-2007 @ 7:57AM
Thushara said...
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Comprehensive blog. Keep posting
Thushara
http://www.dreamphone.tk
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!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
9-24-2007 @ 8:25AM
Roger said...
Melly,
You are so right on!
I love the fact that Chicago's bond traders already think they know the answer on inflation.
And they are proud of it!
Well, I'll keeping my eyes open and my mind as well.
Good job!
Roger