U.S. stock futures were lower early this morning, pointing to another down day after chipmaker Intel warned on memory-chip prices and cut its profit forecast. On a day with little economic data coming out, investors will focus their attention to a speech from Federal Reserve chairman Ben Bernanke. On Monday, stocks slogged along as the dollar weakened and two economic readings pointed to a slowing economy.The Dow Jones Industrial Average fell 7 points, or 0.06%, and the Nasdaq Composite gave up over 12 points, or 0.57%, while the S&P 500 managed less that a point rise, or 0.05%.
Fed chairman Bernanke is scheduled to speak at an Independent Community Bankers of America meeting in Orlando at 9:00 a.m. EST this morning. Bernanke will speak about the subprime crisis and preventing foreclosures. The Fed is scheduled to have a policy meeting on March 18 where monetary policy will be decided.
Oil prices held steady Tuesday in Asia after reaching overnight to a new record near $104 a barrel and then falling back. A weak dollar combined with anticipation OPEC will not increase production are contributing to oil's latest climb.
Overseas, stocks in Europe and Asia retreated. Economic activity in Europe has been showing signs of cooling off as well, with consumer spending, which accounts for almost 60% of the economy, falling 0.1% in the fourth quarter for the first time in six years.
Without a doubt, the biggest driver of stocks this morning is the news out of Intel (NASDAQ: INTC). The chipmaker lowered its profit forecast for its fiscal first quarter Monday, due to slumping prices for memory chips, especially the NAND flash ones. Gross profit margin would decline as a result, but didn't change its guidance. INTC shares are down over 3% in premarket trading.
The Financial Times reported that Ambac (NYSE: ABK) won't split its business in two. This could cause further concerns about bond insurers.
Staples (NASDAQ: SPLS), the world's largest office products supplier, reported that its fourth-quarter profit dipped 1% to $331 million, or 47 cents per share, amid a tough retail environment. That matched analyst estimates. Sales rose 1% to $5.32 billion, below analysts' expectations for sales of $5.37 billion.
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