Stock futures were barely on the positive side morning, indicating stocks could have a sluggish open as investors' concerns over the economy and the weak dollar linger and after overseas markets declined.On Friday, to wrap up a week where U.S. markets declined considerably, stocks sold off again following news that the U.S. economy lost 63,000 jobs in February, the largest drop since March 2003. The Dow industrials lost 146 points, or 1.22%, the S&P 500 declined 10 points, or 0.84%, and the Nasdaq Composite fell 8 points, or 0.36%. For the week, the S&P 500 declined 2.8% and the Nasdaq Composite lost 2.6%.
At 10 a.m. EDT, January wholesale inventories is due for release.
This week will be full of economic releases investors will focus on including retail sales, consumer sentiment and CPI. While it seems lately that the economic slowdown has taken a precedence over inflation, at least where the Federal Reserve is concerned, the news will likely still impact markets significantly. This would be shown well this week when retail sales are expected to have gained a paltry 0.1% in February, while inflation continues its over 4% annual rate.
But since the Fed is expected to weigh in economic activity more when it makes its policy decision next week, especially after the jobs report, many believe it would cut rates again, some even say by at least 75 basis points. Consequently, the dollar, directly affected by interest rates, has further weakened against the euro and approached an eight-year low versus the yen.
Overseas, markets continued to react to Friday's session in the U.S. Asian markets dropped Monday, with financials further extending losses on concerns about the global credit markets. Malaysian shares were the worst hit in the region, dropping 10% during the session. In Europe, stocks also edged lower Monday, on concerns about the health of the U.S. economy.
Meanwhile, oil prices eased back Monday from last week's record of above $106 a barrel, falling back below $105 per barrel, as tension between oil producers Venezuela and Colombia eased.
On the corporate side, the Wall Street Journal and the New York Times reported that the Justice Department and the FBI are investigating Countrywide Financial Corp. (NYSE: CFC) for securities fraud, specifically "whether company officials misrepresented its financial position and the quality of its mortgage loans."
Reporting today are Blackstone Group (NYSE: BX), which is reporting in the morning and is expected to post earnings 21 cents per share in the fourth quarter. Texas Instruments (NYSE: TXN) -- expected earnings of 46 cents per share in the first quarter -- and Hovnanian Enterprises (NYSE: HOV) -- expected to post a loss of $1.99 per shares in the first quarter -- are reporting after the close.










