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Tech selling on tap U.S. markets set to open lower as Dell says it may restate results, EU expands Intel probe; Fed comments and econ worries could also weigh. NEW YORK (CNNMoney.com) -- U.S. stocks were set to open lower Monday, as investors await the latest signals from Federal Reserve officials, with tech issues expected to bear the brunt amid a possible restatement by Dell and word of an expanded antitrust probe of Intel in Europe. At 8:30 a.m. ET, Nasdaq and S&P futures were sharply lower. Oil continued its decline as OPEC oil ministers held a meeting in Vienna. U.S. light crude fell 95 cents to $65.30 a barrel in electronic trading. Brent crude in London was 90 cents lower at $64.43. Treasury prices edged lower, with the 10-year note yield rising to 4.78 percent from 4.77 percent late Friday. Dell (Charts) announced it would delay its 10-Q filing of its second quarter results and suspend its share repurchase program after an informal Securities and Exchange Commission probe uncovered the "possibility of misstatements" in prior reports. Shares of Dell were off about 4 percent soon after the 7:45 a.m. ET statement from the company. A European Commission spokesman said Monday that the EC will widen an antitrust review of Intel (Charts) to determine if it convinced an electronics retailer to exclude rival Advanced Micro Devices (Charts). Hewlett-Packard's (Charts) board adjourned an emergency weekend meeting without deciding the fate of chairwoman Patricia Dunn in the wake of a scandal involving possible illegal methods to spy on directors and reporters. But even with the uncertainty in the tech sector, economic concerns may weigh even more heavily on the markets Monday, said David Kelly, managing director and economic advisor for Putnam Investments. Boston Fed President Cathy Minehan said in a speech early Monday that the risks of both slower economic growth and higher inflation have grown this summer, complicating the job of central bank policy makers. Two other Fed officials, including vice chairman Donald Kohn, are set to make comments Monday. Kelly said those speeches could roil markets as investors are already looking ahead to key economic readings due later in the week. The most important is the Consumer Price Index report set for Friday, ahead of the Sept. 20 Fed meeting. "I think core CPI is still a worry because it could cause the Fed to be more aggressive than it needs to be," Kelly said. "I think the overlying concern for markets is whether or not the Fed did too much with its tightening." Most major indexes in Asia closed lower, while stocks in Europe were down in early trading. The dollar was lower against the euro but higher against the yen. In other corporate news, Ford Motor (Charts) is preparing an even deeper round of salaried cuts that could be announced as early as Friday, following 4,000 U.S. white-collar job cuts earlier this year, according to The Detroit News. The embattled automaker's board is set to meet Wednesday and Thursday. Ceremonies were planned before the NYSE open to commemorate the fifth anniversary of the terrorist attack that destroyed the nearby World Trade Center, killing nearly 3,000 people. __________________ |
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