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Stock futures were lower this morning, indicating Wall Street could start March with a down day as investors' concerns about the economy continued. Adding to the sentiment is the U.S. dollar, which now stands at its worst level against a basket of currencies since 1973. Also, some manufacturing data will be in focus today.On Friday, U.S. stocks plunged on economic concerns, the credit crisis and consequently the health of the financial sector following American International Group (NYSE: AIG)'s reported large loss. The Dow industrials lost 315 points Friday, or 2.51%, the S&P 500 dropped 37 points, or 2.71%, and the Nasdaq Composite declined 60 points, or 2.58%.
At 10:00 a.m. EST this morning, after the market opens, the Institute of Supply Management will release the ISM index for February, giving investors an idea of manufacturing activity throughout the nation. Economists expect the index to drop to 49, below 50, indicating contraction.
At the same time, the Commerce Department will report on January construction spending, which is also expected to show a decline.
Due to the subprime situation and expectations banks will report even more losses, the dollar declined to a three-year low against the yen, falling for a fifth day. The U.S. currency tumbled 2.3% against the euro in February alone. Also, the U.S. Dollar Index traded on ICE Futures in New York slid to 73.44, the lowest since the gauge started in 1973, ahead of the ISM index data.
As a result of a consistently weakening dollar, oil prices hit record level last week, but steadied Monday near $102 a barrel.
Overseas, Asian markets tumbled with Japan's Nikkei closing Monday's session 4.5% lower. European stocks are down more than 1.5% at this time.
Some stocks that will likely be in focus today include Northrop Grumman (NYSE: NOC) and Boeing (NYSE: BA). While the latter surprisingly lost a major contract with the USAF, Northrop and EADS won it. The contract could be worth up to $40 billion. NOC shares were up over 3.3% in premarket trading, while BA shares declined over 4.5% in premarket trading.
United Technologies Corp. (NYSE: UTX) said Sunday it has made an unsolicited offer to buy Diebold Inc. (NYSE: DBD) for $2.63 billion after failing to negotiate a deal for two years. The offer represents $40 per share, a 66% premium over Diebold's closing stock price Friday of $24.12. DBD shares are up over 62% in premarket trading.
Other big news stories this morning:
- HSBC (NYSE: HBC) profit rises despite subprime hit.
- Berkshire Hathaway (NYSE: BRK.A)'s quarterly earnings fall
- E*Trade (NASDAQ: ETFC) gets new chief
Goldman Earnings Sink After Buffett Dividend
Johnson & Johnson's Income Falls 23%
Burberry Shares Leap on Sales Update
