|
Wal-Mart worries for Dow Dow poised to fall from record level after Wal-Mart says recent sales not as strong as originally reported. Oil prices, Fed officials also could weigh stocks. NEW YORK (CNNMoney.com) -- Stocks start trading Wednesday with the Dow trying to build on its new record high, but a stumble at Wal-Mart could mean a retreat from the benchmark. The widely followed blue chip average closed at a record high Tuesday, after several days of trying to pierce the record that had been set in January 2000, before the stock market bubble burst. Stocks were lifted Tuesday by oil hitting a seven-month low.
What's next for stocks after record high? The early indications are that stocks could get a tough time building on Tuesday's record. Futures slipped just after 8 a.m., pointing to a mixed open, after Wal-Mart Stores (Charts) lowered its September sales estimate. The world's No. 1 retailer now says it only saw a 1.3 percent sales rise at stores open a least a year, a closely watched retail measure known as same-store sales. That's near the low-end of its earlier target of a 1 to 3 percent rise, and down from the 1.8 percent increase it announced just this past on Saturday. The Wal-Mart news wiped out the gain in futures seen earlier after Kuwait's oil minister told wire service Reuters that any production cuts by OPEC would be voluntary. Oil prices are still slightly higher in early trading following those comments, although off earlier levels. Also due to affect oil prices Wednesday is a report on U.S. fuel inventories due at 10:30 a.m. ET. U.S. light crude was up 43 cents to $59.11 a barrel in electronic trading, while Brent crude trading in London is 42 cents higher at $58.85. Kuwait said it may join other OPEC members, Venezuela and Nigeria in cutting output if prices continue their three-month slide. The Wall Street Journal reported that European Union investigators believe they have enough evidence to pursue antitrust charges against chipmaker Intel (Charts), which could put pressure on both the Nasdaq and the Dow in Wednesday trading. Still, shares of Intel were up 0.5 percent in early trading in Frankfurt. Fed Chairman Ben Bernanke is due to speak Wednesday, as are Vice Chairman Donald Kohn, Fed Gov. Susan Bies and New York Fed President Timothy Geithner. Bernanke is due to speak to the Economic Club of Washington in remarks set for 12:45 p.m. ET. There has been a growing consensus in recent weeks that a weakening economy will stop the central bank from raising interest rates any higher. If Fed officials take a more hawkish tone about inflation, though, it could raise fears about future hikes and short-circuit any stock rally. Tuesday Kansas City Fed President Thomas Hoenig said that inflation was ``too high.'' The dollar gained against the euro and the yen in early trading following his comments, even though Hoenig is not on the Federal Open Market Committee which sets rates. Treasury prices were little changed in early trading, leaving the yield on the 10-year note near 4.61 percent. Most major indexes in Asia closed lower on the announcement by North Korea Tuesday that it plans to test a nuclear weapon. Shares of Toyota Motor (Charts) closed higher in Tokyo Wednesday, though, the day after it reported a 20 percent increase in September U.S. auto sales, as General Motors (Charts) and Chrysler Group, the key unit of DaimlerChrysler (Charts) continued to lose share. Major indexes in Europe were up in early trading, although EADS, the parent of aircraft maker Airbus, lost 7 percent in Paris trading on the announcement of additional delays in the first deliveries of the A380 superjumbo jet. Competitor Boeing (Charts), a Dow component, gained nearly 3 percent in Frankfurt trading. |
|
