Going for four in a rowStock futures point to lower open despite falling oil prices as Dow looks for another record-high close.NEW YORK (CNNMoney.com) -- Investors will be waiting to see if further oil declines can fuel a fourth straight record-high close for the Dow. Stock futures were lower in early trading despite further declines in oil prices, although a comparison to fair value, which predicts the direction of stocks at the open, pointed to a flat open for the blue chip S&P 500 and a lower open for Nasdaq. Oil prices fell to the lowest point of the year on doubts among traders about OPEC following through on announced production cuts. The U.S. crude futures contracts plunged $1.34 to $54.92 a barrel, while Brent crude trading in London was 64 cents lower at $57.90. Hewlett-Packard (Charts) reported strong results and guidance that topped forecasts. HP also passed competitor Dell (Charts) in the quarter to become the leader in PC sales. A day earlier, Dell announced it had delayed plans to also release results after the bell Thursday. But shares of Dow component HP, which have gained 10 percent since September and more than 40 percent this year, fell slightly following the after-hours report. In addition to the results and guidance, the company disclosed in an after-hours filing that the Securities and Exchange Commission has begun a formal investigation of its boardroom leak probe, and the Federal Communications Commission is also joining the investigation, which includes state and federal prosecutors in addition to the SEC. Another Dow component, Johnson & Johnson (Charts) said late Thursday that it plans to acquire cardiovascular device company Conor Medsystems (Charts) for about $1.4 billion in cash, which represents a 22 percent premium for Conor. In other earnings news, coffee retailer Starbucks (Charts) Corp. posted lower earnings Thursday and said revenue grew slightly less than Wall Street had expected. Shares fell in after-hours trading. And clothing retailer Gap (Charts) posted lower third-quarter earnings, slightly better than forecasts, but it cut its guidance for the full fiscal year, sending its shares lower as well. The one key economic report came in the form of housing starts and building permits, which were much weaker than expected. October housing starts fell to an annual rate of of 1.49 million from 1.77 million in September, according to the Commerce Department. That widely missed economists' estimates of 1.68 million, according to Briefing.com. Permits, which are seen as a measure of builder confidence, fell to 1.54 million from 1.64 million the month prior. Economists were looking for a slight slip to 1.63 million. The National Association of Home Builders' members survey this month showed a slight rebound in confidence, even if the builders still had a strongly negative view of the market. Treasury prices were slightly higher in early trading, taking the yield on the 10-year note to 4.65 percent from 4.66 late Thursday. The dollar was higher against the euro and the yen. Stocks in Asia closed mixed, with Japan's Nikkei and South Korea's Kospi slipping while Singapore's Straits Times and India's BSE indexes extended their record-breaking streak. Hong Kong's Hang Seng closed slightly higher. Major markets in Europe were lower in early trading. |
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