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Markets ready to recover?
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August 31, 1998: 7:58 a.m. ET
Dow Jones looks to positive ground after suffering worst week in history
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NEW YORK (CNNfn) - Wall Street was poised to begin a slow recovery in Monday trading, but political developments in Russia still loomed large in the background.
In Asian markets, Tokyo shares gathered some strength while Hong Kong shares fell 7 percent after the Hong Kong government pulled back from a massive buying campaign to support the market.
European bourses opened strong, then gave back early gains as traders kept their focus on Russia. The communist opposition has said it will block Viktor Chernomyrdin's confirmation as prime minister in a key vote Monday, despite Russia's growing economic crisis.
The bond market looked set to ease off last-week's record-low yields as the U.S. dollar remained weak in European trade. The benchmark 30-year Treasury bond slipped 11/32 of a point to push the yield up to 5.37 percent in overseas trading.
The Dow Jones industrial average capped off week investors would rather forget by falling 114.31 to close at 8051.68 in Friday trading. But U.S. markets looked to reverse that trend early Monday, based on S&P 500 futures trading on the Globex system.
S&P futures were up 5, translating to an early 40-point gain for the Dow.
(Click here for the latest S&P 500 futures quote)
Among the individual stocks investors will be watching is Baby Bell US West Inc., which settled its strike late Sunday with 34,000 union workers. US West (USW) shares closed at 52-1/8, up 2-1/8 in Friday trading.
Conversely, Northwest Airlines Corp. pilots walked off the job over the weekend after the No. 4 airline and its pilot union could not reach a new labor agreement. Northwest said each day of the strike will cost the United States $490 million. Northwest (NWAC) shares finished up 2-3/16 at 30-3/16.
Fresh from its $4.1-billion acquisition of Capstar Broadcasting Corp. on Friday, Chancellor Media Corp. said it will buy privately held Whiteco Outdoor Advertising for $930 million. Chancellor said the Capstar deal will create the nation's largest radio broadcaster, while the Whiteco deal would place it among the top five outdoor advertisers.
Chancellor (AMFM) shares closed at 41-1/4, off 1-1/2. Capstar (CRB) shares slipped 1-1/16 to close at 18-1/4.
Viacom Inc. said it plans to repurchase up to $1.75 billion in equity securities. The entertainment and publishing giant said it will finance the repurchase program with working capital. Viacom (VIA.B) shares finished down 3/16 at 54-1/8. 
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