What started off this morning as what seemed could be a positive day has since turned and stocks futures at this time are flat, pointing to perhaps yet another day of declines. Investors will no doubt focus on Federal Reserve Chairman Ben Bernanke testimony, which could lift stocks, and the loss reported by Merrill Lynch for the fourth quarter.Mixed new Wednesday caused investors yesterday to seek direction as, but finally U.S. stocks closed lower, with the Dow industrials losing nearly 35 points, or 0.28%, the Nasdaq Composite dropping 23 points, or 0.95%, and the S&P 500 ending 7 points lower, or 0.56%.
Several economic reports are due today, among them December housing starts and building permits due out at 8:30 a.m. EST. While it's doubtful there will be positive news in the housing market, some are starting to look for the trough. It would encouraging to see the worst over.
Also at 8:30 a.m., weekly jobless claims will be released. At 10:30, the January Philadelphia-area manufacturing poll will be reported.
However, what the Street is really looking forward to is to hear Bernanke's testimony on Capitol Hill at 10:00 a.m. EST. Other Fed speakers are also scheduled to say their piece. Bernanke has indicated he is open to congressional and White House efforts to develop a rescue package to avert a recession. Last week, Bernanke said he would be more aggressive and take additional action. Problem is, he hasn't moved yet and the market may be losing its patience and confidence in the Fed and Bernanke's ability to help pull the economy out of its doldrums.
Overseas, Asian markets rebounded and closed the day on a higher note. European stocks are mostly positive too.
Oil prices near $91 a barrel after dropping overnight.
What really interests investors right now, however, is Merrill Lynch (NYSE: MER) quarterly report. The brokerage firm reported of a "second straight quarterly loss after writing down $11.5 billion of subprime mortgages and bonds, ousting its chief executive officer and losing almost half of its market value in 2007." The fourth-quarter net loss of $9.83 billion, or $12.01 a share was far below analysts estimates of a loss of $4.82 a share, according to a survey by Bloomberg. MER shares are down 1% in premarket trading (7:13 a.m.).
General Motors (NYSE: GM) is due to make a presentation at 1:30 p.m. in front of analysts.
Closing Bell: When it feels like a coin toss (AA, WAG, COST, GS, C, GE)
3Com shows little profit growth, stock sells off
Serious Money: Not cheating -- market waving the caution flag
