After a very eventful first trading day of 2008 that saw oil hit $100 a barrel and stocks plunge, futures are mixed this morning, indicating stocks may yet continue yesterday's decline with a weak open if data comes out unfavorable. Economic data will no doubt attract much attention today as well as investors are concerned more and more about the health of the economy.
On Wednesday, several reports showed the economy is slowing. In addition to the economic data, oil prices reached $100 a barrel for the first time and there was a parade of downgrades from analysts with chips being hit the most. U.S. stocks, which actually started somewhat higher, stumbled. The Dow Jones Industrial Average fell 220 points, or 1.67%, its worst opening-day performance since 1983. The S&P 500 lost 21 points, or 1.44%, and the Nasdaq Composite lost 42 points, or 1.61%.
Several economic indicators are also due for release today:
- At 8:15 a.m. EST, the ADP monthly employment report, which many see as a preview to the upcoming government employment report tomorrow.
- At 8:30 a.m., the weekly jobless claims report will also be released.
- At 10:00 a.m., November factory orders data will be released.
- Finally, and with oil hovering near $100 a barrel (above $99.50) probably more significant this week than others, is the crude inventory release due out at 10:30 a.m. EST.
Overseas, markets in Asia and Europe followed the U.S. stocks lower.
Also in headline new this morning:
Starting later this morning, car makers will report December car and truck sales. Analysts are expecting a 4% decline in sales this month to the lowest level since 1998. General Motors Corp. (NYSE: GM), may post flat December growth compared with the year-ago period, while Ford Motor Co. (NYSE: F) and privately held Chrysler LLC should report a drop in sales.
State Street Corp. (NYSE: STT) "said on Thursday it will take a $279 million fourth-quarter charge for legal and other costs after making bad bets on subprime mortgages and other debt."
Some companies reporting today are Monsanto o. (NYSE: MON) - preview, and Bed Bath & Beyond (NASDAQ: BBBY) - preview.
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