|
Wall St. awaits more data
|
 |
October 1, 1999: 6:43 a.m. ET
Manufacturing index, personal income and spending on tap Friday
|
NEW YORK (CNNfn) - Investors will be eyeing a key report on manufacturing strength and other economic data Friday as they nervously count down to next week's Federal Reserve meeting.
Early indications suggested a flat opening on Wall Street, but the release of a Commerce Department report on personal income and spending before the market opens could change that outlook. Wall Street also is awaiting the National Association of Purchasing Management's index of manufacturing, due out earning Friday morning.
S&P futures on the Globex trading system were down 3.8 points at 1294.40 early Friday. That's more than a point below fair value for the futures -- a formula taking into account interest and dividend effects -- which was estimated by London traders at 1,295.92. Typically, one point of difference between the futures index and fair value equals about eight points on the Dow Jones industrial average as trading opens.
On Thursday, the Dow industrials jumped 123.47 points, or 1.2 percent, to 10,336.95, boosted by end-of-quarter buying, bargain-hunting and benign economic data. The Nasdaq composite rose 15.89 points to 2,746.16. The S&P 500 index gained 14.34 points to 1,282.71.
In Asia Friday, markets posted firm gains following Wall Street's surge a day earlier. In Tokyo, the impact of the nuclear accident near the capital had little effect on trading. The benchmark Nikkei 225 average gained 107.1 points to 17,712.56.
In Europe early Friday, markets were mixed. The FTSE 100 in London reversed an early dip into the red to climb 11 points at 6,040.7 while the Xetra Dax in Frankfurt slipped 11 points at 5,139.18.
In the currency markets overnight, the dollar lost ground against the strong Japanese yen. The dollar slipped 0.54 yen to 105.83, and stood at $1.0678 against the euro.
Overnight in the Treasury market, the benchmark 30-year bond dropped 18/32 of a point in price for a yield of 6.08 percent, up from a closing yield of 6.04 percent Thursday.
On the economic front, Wall Street is anticipating a slight rise in the NAPM index, suggesting continued growth in the manufacturing sector. Economists polled by Reuters forecast the index climbed to 54.3 in September from 54.2 in August. A reading higher than 50 indicates manufacturing activity is expanding.
This report, as well as other economic indicators due for release, will be closely watched as Wall Street prepares for Tuesday's meeting of Federal Reserve policymakers on the future of interest rates.
In corporate news, speculation continues to mount over the future of Internet portal Excite@Home Corp. (ATHM). Amid rumors the firm may split into two companies, AT&T Corp. (T) said late Thursday it is exploring "many alternatives" regarding its ownership interest in the company.
Rumors that America Online Inc. (AOL) is considering acquiring the Excite portal sent Excite@Home shares soaring earlier this week. The stock fell 2 to close at 41-7/16 before AT&T released its statement, then rose to 43-1/2 in after-hours trade.
In other news, Ford Motor Co. (F) reportedly plans to spin off its auto parts division, distributing shares directly to stockholders. The New York Times, citing people close to the matter, reported Friday that under the plan factory workers at the parts unit would receive wage and job guarantees through a contract under negotiation with the United Auto Workers. Ford stock gained 5/8 to 50-¼ Thursday.
Drugmaker Eli Lilly Corp. (LLY) said late Thursday it has received expanded approval for use of its Evista osteoporosis drug for use as a treatment in postmenopausal women, rather than just as a preventative medication. The stock closed up 15/16 at 64-3/16 prior to the announcement.
Meanwhile, The Wall Street Journal reported Friday that Wal-Mart Stores Inc. 's (WMT) highly anticipated revamp of its Web site is poised to give electronic commerce a holiday jolt. The newspaper said the redesigned Web site, which would mark the retail giant's first major effort to be competitive online, may debut in early November and would rapidly expand with new features after that. Wal-Mart stock rose 1-15/16 to 47-9/16 Thursday.
Investors will have a number of profit warnings to consider Friday. Integrated circuit maker Sipex Corp. (SIPX) alerted Wall Street after the closing bell that it expects to earn between 7 and 9 cents a share for the third quarter, well below estimates of 15 cents per share. Supply problems in Taiwan slowed deliveries and hurt sales, the company said. The stock slipped 9/16 to 14-5/16 before the announcement.
Also, telephone equipment firm CIDCO Inc. (CDCO) warned that third-quarter earnings will fall short of the 7-cent per share average forecast of analysts, saying it expects profits to fall in the range of 1 cent and 3 cents a share. The company, a maker of caller identification devices, said Hurricane Floyd derailed a marketing program and product shipments were delayed because of the Taiwan earthquake. Shares closed down 7/32 at 13-1/16.
Also, computer switch producer Apex Inc. (APEX) said year-end profit likely will fall short of expectations, saying it's been hurt by the loss of Hewlett-Packard Co. (HWP) as one of its clients. The company did not offer a revised earnings forecast. The stock ended the day up 9/16 at 18-11/16.
On the IPO front, investment management firm BlackRock Inc. is expected to make its trading debut Friday in one of the week's most anticipated public offerings. The New York-based firm has priced 9 million shares at $14 apiece, the low end of its price range. It will trade under the ticker symbol "BLK" on the New York Stock Exchange. 
|
|
|
|
|
 |
|
