Walmart's New Health Food Push: Is It Too Hard to Swallow?
Bonds Are a 'Safe' Investment: A Big Lie Gets Even Bigger
Looks like the first trading day of the new year will begin on a positive note as stock futures are drifting higher this morning. Economic data will be the focus during today's session with several indicators like ISM and FOMC are due out throughout the day.On Monday, the last trading day of 2007, stocks dropped in a light volume. The Dow industrials lost 101 points, or 0.76%, the Nasdaq Composite was down 22 points, or 0.83%, and the S&P 500 declined 10 points. For the year, the Dow gained 6.4%, the S&P 500 3.5% and the Nasdaq 9.8%. As 2007 progressed it seemed that volatility in the market increased as uncertainties about U.S. economy mounted.
Today, investors will await some important economic data.
- At 10:00 a.m. EST, the Institute of Supply Management will release the manufacturing index for December. Economists are expecting the index to decline somewhat from 50.8 to 50.5 according to Briefing.com. While still holding just above 50%, thus indicating an expansion in economic activity, the reading could be the lowest in a year and yet another slower growth data point.
- At the same time November construction spending will be reported and is due to decrease again.
- At 2 p.m., minutes from the last meeting of the Federal Reserve's policy meeting will be released. The FOMC voted to cut interest rates by a quarter-point to 4.25% in the last meeting. What investors and economists will be looking for are clues as to what the Fed might do next meetings.
Crude oil futures rose above $97 in New York on speculation that U.S. stockpiles fell for a seventh week when weekly inventories are reported tomorrow. Attacks in Nigeria, Africa's biggest crude producer, also increased concern that violence will deepen production cuts.
Overseas, Asian markets closed mostly down but European markets are higher by this time. Also, Venezuela launched a new currency yesterday, in an effort to fight inflation and boost confidence. The new currency takes off three zeros from denominations.
In corporate news:
Centro Properties Group, the Australian owner of 700 U.S. shopping malls, put itself up for sale before a Feb. 15 deadline to refinance A$3.9 billion ($3.4 billion) of debt.
Advanced Micro Devices (NYSE: AMD) and Intel Corp. (NYSE: INTC) were both downgraded by Banc of America. Intel was downgraded from Buy to Neutral, while AMD was downgraded from Neutral to Sell.
Goldman Earnings Sink After Buffett Dividend
Johnson & Johnson's Income Falls 23%
Burberry Shares Leap on Sales Update
