U.S. stock markets are posed to open down as Wal-Mart Stores Inc. (NYSE:WMT) released its worst same-store sales figures in 25 years and new data underscored the weakness in the housing market. DaimlerChrysler AG (NYSE:DCX) also is expected to announce big cutbacks at its Chrysler unit.
Wal-Mart, the world's largest retailer, said January sales rose 2.2 percent, following a poor holiday season. The company has reshuffled its management ranks as it looks to regain lost traction against rivals including Target Stores Corp. (NYSE:TGT). JP Morgan Securities analyst Charles Grom told clients Saturday that Wal-Mart will "continue to face an uphill battle versus Target and other moderately priced department store chains," according to the Wall Street Journal (subscription required).
Two Detroit newspapers are reporting that DaimlerChrysler is expected to announce plans to cut 10,000 jobs and close three U.S. factories as it tries to become more competitive, according to the Associated Press. There also will be closer ties between the company's Chrysler and Mercedes Benz units.
Oil prices are expected to rise as a cold snap hits the Northeast. and the dollar was mixed in trading against currencies in Europe. Economists are expecting that a key measure of service industry growth will show that increased consumer spending is boosting economic expansion, according to Bloomberg News. The Institute for Supply Management's index of non-manufacturing business is expected to jump to 57 from a revised 56.7 in December, according to a survey of economists by Bloomberg.
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