Wall Street Poised for Lower Open

Wed Dec 12, 2007 9:15 AM EST

us-news, business, wall-street, federal-reserve, dow-jones

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NEW YORK — U.S. stocks headed for a lower open Thursday as investors appeared skeptical that a plan from the Federal Reserve and other central banks to ease tightness in the credit markets would prove effective.

Stocks declined overseas amid uncertainty over the plan after an initial burst of enthusiasm in the U.S. on Wednesday gave way to concerns about the effort to inject liquidity into the credit markets.

U.S. stocks ended higher but well off their highs Wednesday as investors took a closer look at the Fed's agreement with the European Central Bank and the central banks of England, Canada and Switzerland to combat what it labeled elevated pressures in the credit markets.

Uncertainty continued Thursday ahead of several economic readings due before the opening bell, including the Labor Department's producer price index, a reading of inflation levels.

In addition, the Commerce Department is slated to release its November retail sales report. The reading could be an important snapshot of retailers' health heading into what is for many the most important period of the year.

The uncertainty over the economy sent stock futures lower on Thursday.

Ahead of the opening of trading, the Dow Jones industrial average futures fell 114, or 0.84 percent, to 13,386.

Standard & Poor's 500 index futures fell 13.90, or 0.93 percent, to 1,476.30, while Nasdaq 100 index futures fell 22.50, or 1.07 percent, to 2,085.20.

Bond prices rose. The yield on the benchmark 10-year Treasury note, which moves opposite its yields, rose to 4.10 percent from 4.06 percent late Wednesday. The dollar rose against other major currencies, while gold prices fell.

Light, sweet crude rose 19 cents to $94.58 per barrel in premarket electronic trading on the New York Mercantile Exchange.

In afternoon trading, Britain's FTSE 100 fell 2.23 percent, Germany's DAX index lost 1.29 percent, and France's CAC-40 fell 2.18 percent. In Asia, Japan's Nikkei stock average closed down 2.48 percent, while Hong Kong's Heng Sang index lost 2.72 percent on the day.

In corporate news, Costco Wholesale Corp.'s fiscal first-quarter profit climbed 11 percent amid membership fee growth. The warehouse retailer's results met Wall Street's expectations.

Investors also awaited fiscal-fourth quarter results from Lehman Brothers Holdings Inc. expected Thursday morning.

Dow Chemical Co. said it agreed to sell a 50 percent stake in five of its global businesses to a Kuwaiti company for about $9.5 billion to form a joint petrochemicals venture.

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{"commentId":1262482,"authorDomain":"fechancellor"}

fechancellor

Mr. Barneke, SIR, too far, too fast, but you better than Greenspan on the quick trigger. If I were a Fed Board dude, I'd just say, hell, let's retrace right now, then follow the data down the road,

Like where your heart and head is here, I really do!

{"commentId":1262482,"threadId":"188197","contentId":"1158569","authorDomain":"fechancellor"}

1 vote

#1 - Wed Dec 12, 2007 9:45 AM EST

{"commentId":1262488,"authorDomain":"a3dmofo"}

a3dmofo

There's a brutal irony in helping a society overwhelmed by debt and poor fiscal responsibility, by taking on more debt.

{"commentId":1262488,"threadId":"188197","contentId":"1158569","authorDomain":"a3dmofo"}

1 vote

#2 - Wed Dec 12, 2007 9:48 AM EST

{"commentId":1262707,"authorDomain":"politicalwhiz"}

politicalwhiz

Oh, how the game of chess can be played. Let us pretend that printing more money is a solution meanwhile loaning this money to banks that have over extended themselves --- meaning they can't afford to be in business all the while hoping through some miracle the markets will just correct themselves. A solid 10 yrs of credit abuse will not be solved in a mere 2-3 years of slow recession. It's time for another "market correction" perhaps it'll bring back a return to actual money and we can get away from the game of economics and pretend that like in monopoly we are the bankers that can control the cash of everything and anything. It's not that hard really ... think about it. In Monopoly everyone starts with like 2k well now we're going to start with 20k the price of boardwalk remains the same relative to the value of the currency. So why are we printing more money as our currency falls internationally?

Grr just grr.
-The Whiz

{"commentId":1262707,"threadId":"188197","contentId":"1158569","authorDomain":"politicalwhiz"}

1 vote

#3 - Wed Dec 12, 2007 11:01 AM EST

{"commentId":1262762,"authorDomain":"GMonkey"}

GMonkeyLouie

I'm just gonna take all of my money and hide it in my mattress. That way, nobody loans it to anybody, and I don't run the risk of having it suddenly disappear in a credit crisis... plus, I don't have to be a part of this ridiculous game of those with money exploiting those who need it... as far as I see it, the only reason that changes in interest rates cause a crisis is because the people with the most money invested in the market are trying to respond to tiny fluctuations.
Of course, if I'm wrong, tell me, 'cause I know my knowledge of monetary and market theory is incomplete.

{"commentId":1262762,"threadId":"188197","contentId":"1158569","authorDomain":"GMonkey"}

1 vote

#4 - Wed Dec 12, 2007 11:16 AM EST

{"commentId":1263999,"authorDomain":"wbrianwhite"}

Brian White

You're wrong. You should hide your money in MY mattress. Much safer, I promise :)

{"commentId":1263999,"threadId":"188197","contentId":"1158569","authorDomain":"wbrianwhite"}

1 vote

#4.1 - Wed Dec 12, 2007 5:37 PM EST

{"commentId":1264110,"authorDomain":"PamelaDrew"}

Pamela Drew

I'm just gonna take all of my money and hide it in my mattress.

Better convert to Euros or yen or yuan first, if you plan to buy anything with it when you go to get it.

{"commentId":1264110,"threadId":"188197","contentId":"1158569","authorDomain":"PamelaDrew"}

1 vote

#4.2 - Wed Dec 12, 2007 6:25 PM EST

{"commentId":1262921,"authorDomain":"PamelaDrew"}

Pamela Drew

Insanity, the stock prices have no connection to reality and the collapse will be worse than the dot com decline.

{"commentId":1262921,"threadId":"188197","contentId":"1158569","authorDomain":"PamelaDrew"}

2 votes

#5 - Wed Dec 12, 2007 12:12 PM EST

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Stocks Mixed After Wholesale Prices Jump	Associated Press	Thu Dec 13
Wall Street Rises Ahead of Fed Meeting	Associated Press	Mon Dec 10
Stock Futures Rise After Tuesday's Drop	Associated Press	Tue Dec 11
Stocks Fall on Inflation Report	Associated Press	Fri Dec 14
ECB to Offer Up to $20B in Dollars	Associated Press	Wed Dec 12

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