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Dow set to rebound
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December 15, 1998: 7:46 a.m. ET
S&P futures point to early gains as investors return, ready to buy
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NEW YORK (CNNfn) - Wall Street appeared ready to bounce back Tuesday, shrugging off Asian losses and a flat opening in Europe.
S&P futures were up 7.60 Tuesday, indicating an early gain for the Dow. (Each point in the futures market typically translates to 8 points on the Dow.)
The investor enthusiasm follows Monday's broad-based sell-off. The Dow Jones industrial average closed Monday down 126.16 points, or 1.43 percent, at 8,695.60, its lowest close since Oct. 30. The Nasdaq Composite index was particularly hard hit, falling 62.39, or 3.07 percent, to 1,966.92.
(Click here for the latest S&P futures quote)
Yesterday's troubles on Wall Street breathed a little life into bonds, though. The benchmark 30-year Treasury Bond was up 2/32 for a yield of 4.98 percent.
Investors will get a look at where inflation stands early today, when the November consumer price index is released at 8:30 am. Analysts expect a modest 0.1 percent increase. October business sales and employee real earnings are also due Tuesday.
Shares of Seagram (VO) could be active. The company announced plans Monday to charge as much as $700 million connected to the Polygram's integration. Seagram has marked up to $1 billion in non-core assets it expects to sell within the next two years. Shares closed up 13/16 Monday at 36-15/16.
Elsewhere, investment bank Goldman Sachs Group L.P. reported an 81 percent decline in fourth quarter profits Monday, reflecting turmoil in global financial markets.
Other stocks to watch on Tuesday include:
Kellogg Co. (K), the world's largest cereal company has raised cereal prices an average of 2.7 percent to pay for new products and more advertising and marketing. Kellogg jumped 3/8 Monday to 35-1/2.
Federal Express (FDX) could attract investor interest after its pilots union said they may reach a tentative contract as early as Thursday. FedEx shares were down Monday 1-9/16 to 70-1/4.
America Online Inc. (AOL) is expected to announce a move into Latin American markets Tuesday. AOL closed down 2-5/16 Monday at 89-1/4.
Oneok (OKE) agreed to buy Southwest Gas (SWX) for 863.6 million. Oneok closed up 1/4 at 33-1/2. Southwest was down 5/8 at 23-3/4.
Also, CMGI (CMGI), an Internet venture capital company, is expected to announce earnings today. The company's shares were down 6-7/16 at 66 Monday.
Toyko stocks were down moderately Tuesday, due to fears that more Japanese banks would be put under state control, but the Nikkei average rallied to stay above the 14,000 point averages. Monday's declines on Wall Street and European markets weighed heavily on Asia. However, Hong Kong, Malaysia, Thailand and Taiwan all closed up about 0.5 percent. Korea was up 3.7 percent.
Europe's bourses made some modest gains in early trading Tuesday on a largely technical recovery following the recent declines. 
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