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Markets on econ watch
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November 2, 1999: 6:52 a.m. ET
Stocks to watch include Boeing, Mattel, eToys, Jenny Craig
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NEW YORK (CNNfn) - Inflation-sensitive Wall Street will be eyeing a key economic report Tuesday morning after interest-rate jitters and profit-taking led to a mixed session Monday.
Early signs pointed to a flat start when U.S. markets open. But that could change as investors keep a close eye on a government report on personal income and spending for September due early Tuesday.
S&P futures on the Globex trading system were up less than a point at about 1,363 early Tuesday. That's little changed from fair value for the futures -- a formula taking into account interest and dividend effects - which was estimated by London traders at 1,362.31. 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 Monday, the Dow industrials lost 81.35 points to 10,648.51. The Nasdaq composite index rose 1.22 points to 2,967.65 - its second straight record -- while the S&P 500 index dropped 8.81 points to 1,354.12.
In Asia Tuesday, Tokyo stocks finished flat as investors worried about the strength of the yen. Other markets in the region were also quiet after the mixed session on Wall Street.
In Europe early Tuesday, most major markets fell as investors remained jittery ahead of a pair of interest rate decisions later this week.
In the currency markets overnight, the dollar gained ground against the Japanese yen, trading at 104.70 vs. 104.19 late Monday in New York, and was little changed at $1.0510 against the euro.
Overnight in the Treasury market, the benchmark 30-year bond edged up 3/32 of a point but the yield was little changed at 6.18 percent.
In corporate news, Boeing (BA) has been forced to halt most of its commercial aircraft deliveries after discovering faulty cockpit parts in four of its five models. While the company said there was no safety threat, the move follows Boeing's recovery from damaging strikes and production delays and the loss of its market leadership. Boeing stock slid 1-7/16 to 44-5/8 Monday.
In other news, BP Amoco's $27 billion takeover of Atlantic Richfield (ARC) reportedly is in jeopardy of being nixed by U.S. regulators because of antitrust concerns. Regulators reportedly are scrutinizing the combined company's large share of North Slope oil exploration and production in Alaska. BP Amoco stock slid 1.5 percent in early London trading Tuesday. Atlantic Richfield stock slipped 7/8 to 92-3/16 in New York on Monday.
Meanwhile, chip maker Advanced Micro Devices (AMD) is eyeing a fourth-quarter restructuring charge as part of an ongoing drive to cut costs, according to documents filed with the Securities and Exchange Commission Monday. The company earlier this month also said it would sell its communications division, which makes computer chips for communications devices. AMD shares rose 1/2 to 20-5/16 Monday.
In other news, DaimlerChrysler (DCX) is expected to announce soon that it will begin phasing out its Plymouth brand because of declining sales, The Wall Street Journal reported. A final decision isn't expected until Wednesday, the newspaper said. In New York trading, the stock closed down 1-9/16 at 76-3/16 Monday.
On the retailing front, Mattel Inc. (MAT) announced plans to spin off a majority stake in one of the units of its troubled Learning Co. subsidiary, a genealogy Web site. Mattel and partners including A&E Television Networks and Hearst Interactive Media announced a $37.5 million initial investment in Genealogy,com. Mattel stock, trading near 52-week lows amid problems at the Learning Co. unit, closed up 1/8 at 13-9/16 Monday.
In other retailing news, Internet retailer eToys (ETYS) is reportedly planning to join forces with the children's divisions of The Gap (GPS) in a marketing partnership in an alliance expected to be announced later Tuesday. Under the deal, both companies' products with be advertised on the Internet and at Gap stores during the holiday shopping season. EToys stock slid 4-11/16 to 55- 1/16 Monday. Gap shares lost 15/16 to 36- 3/16.
Shares of Cigna Corp. (CI) could be on the move after the health care company easily surpassed analysts' third-quarter earnings expectations late Monday. The stock closed down 1-3/8 at 73-3/8 prior to the news.
Meanwhile, weight loss company Jenny Craig Inc (JC) posted a sharper-than-expected fiscal first-quarter loss and announced a restructuring plan to reduce future operating expenses . The company lost 18 cents per diluted share, excluding one-time charges, compared with profit of 12 cents a year ago. Analysts had expected Jenny Craig to lose 6 cents per share. The stock edged up 3/16 to 2-5/16 prior to the news Monday.
In other news, Integrated Health Services (IHS) has elected not to make a $7.7 million interest payment due Monday on its debt and has 30 days to make the payment before defaulting. The company announced earlier this year it is exploring strategic alternatives, including consolidating its debt or selling some assets. The stock edged up 1/32 to 5/16 in Monday trading.
On Tuesday's earnings calendar, results are expected from cable company Media One Group (UMG), Ralston Purina Group (RAL) and furniture maker La-Z-Boy Inc. (LZB).
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