So far this week, the Dow has dropped 211 points despite advancing futures both Monday and Tuesday. Brace for today, as futures headed south on increasingly dire credit concerns.Among the latest chapters in the subprime-mortgage fallout, cash manager Sentinel Management Group Inc. yesterday aired its fears of forced liquidation, telling clients that it's seeking to stop withdrawals, although regulators deny such a request has been made.
Also Australian finance manager Basis Capital Fund Management Ltd. said the subprime collapse may sack one of its hedge funds by 80%.
Deere & Co. (NYSE: DE) surprised analysts this morning, reporting third-quarter earnings of $2.37 per share, vaulting over EPS expectations by 38 cents. Other companies reporting earnings Wednesday include Macy's Inc. (NYSE: M) and Sara Lee Corp. (NYSE: SLE).
Loads of government data being released today, beginning with the Labor Department's Consumer Price Index for July at 8:30. CPI is expected to rise, though lower gas prices likely tapered any increase.
Later this morning, the Fed will release the July numbers on Industrial Production, measuring the output of factories, mines, and utilities. The DOE's weekly crude inventories report will be released at 10:30.
Overseas, benchmark indexes fell across Europe, with the FTSE slipping 1%. Japan's Nikkei dropped 2.2%, though the yen climbed to a 4-1/2 month high against the dollar and the euro.
Corporate news
Food giant Nestle SA (NYSE: NSRGY) reported an 18% improvement in first-half profits, boosting its shares overseas as well as competitors, including Unilever (NYSE: UN).
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