Before the bell: Stock futures point to more losses on Wall Street today

Posted Feb 20th 2009 7:32AM by Melly Alazraki
Filed under: Before the Bell, International Markets, Market Matters, Economic Data, Oil, DJIA

U.S. futures were sharply lower Friday morning, indicating stock markets could have a rough day on Wall Street ... once again. This comes a day after the Dow Jones industrial average -- after a hopeful early morning -- slumped to a more than 6-year low, and closed below the 7,500 level. The same fears -- a prolonged and deep recession -- continue to plague investors, sending them out of stocks and into safe havens. With no buyers in sight, many are fearing a new phase in the bear market.

As if to prove investors' worries, GM's Swedish-based subsidiary Saab filed for bankruptcy protection Friday, Anglo American PLC said Friday it will cut 19,000 jobs, just as financials continue to roil.

Overseas, world stock markets dropped sharply Friday, following Wall Street's declines. Meanwhile, oil prices fell below $39 a barrel Friday on continued concerns about weak crude demand. Oil prices did increase following lower-than-expected inventory numbers Thursday.

On the economic front, January consumer price index will be reported at 8:30 a.m Eastern, and is expected to increase by 0.3%. Despite yesterday's higher PPI number, consumer prices may surprise and fall on an annual basis for the first time in more than 50 years, increasing deflationary concerns. If this happens, markets may react even worse.

Tags: featured