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Markets & Stocks
Wall St. set for lower open
September 2, 1999: 6:54 a.m. ET

Investors to watch shares of Republic New York, Anheuser-Busch, Frontier
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NEW YORK (CNNfn) - U.S. investors were following reports of a scandal involving Republic New York Securities Corp. and a major beer recall by Anheuser-Busch in Europe early Thursday, as a nervous Wall Street looked set for a lower opening despite its rebound a day earlier.
     Early indications suggested that U.S. stocks will drop when the markets open, as investors prepare anxiously for the August jobs report Friday.
     S&P futures on the Globex exchange system were down 8 points at 1,326.00. That's more than 7 points below fair value for S&P futures - a formula that takes into account interest and dividend effects -- which was estimated by London traders at 1,333.11. Typically, a point of difference between the futures index and fair value equals eight points on the Dow Jones industrial average as trading begins.
     On Wednesday, the Dow industrials gained 108.60 points, or 1 percent, to 10,937.88, rallying after four consecutive losing sessions. The Nasdaq composite index rose 11.54 points to 2,750.80 and the S&P 500 index advanced 10.66 points to 1,331.07.
     In Asia, the strength of the yen pulled down stocks in Tokyo, as the Nikkei 225 index closed down 171 points, or 1 percent, at 17,631.25. In Hong Kong, the Hang Seng index fell 1.3 percent to 13,367.56.
     In Europe, all the major markets slumped by mid-morning Thursday, as traders turned jittery ahead of Friday's U.S. jobs data. London's FTSE 100 benchmark index dipped 28.6 points, or about 0.46 percent, to 6,247.6. Frankfurt's Xetra Dax fell 81.77 points, or 1.54 percent, to 5,235.35.
     In overnight trading in the Treasury market, the price of the benchmark 30-year bond was up 1/32 for a yield of 6.07 percent, compared with a closing yield of 6.08 percent Wednesday.
     In the currency markets, the dollar lost 0.08 to 109.05 against the strong Japanese yen, and traded at $1.0654 against the euro.
     On the economic front, investors looking ahead to Friday's jobs report will be watching the release of weekly jobless claims, which are expected to rise to 289,000 for the week ended Aug. 28, up from 283,000 a week earlier. The Labor Department also will issue another reading on second-quarter productivity, which is expected to have risen 0.8 percent, compared with 1.3 percent in the initial reading last month.
     Also due for release is the Commerce Department's July report on factory orders. Estimates call for a 1.8 percent increase, compared with 0.7 percent growth a month earlier.
     In corporate news, Republic New York Securities Corp., the wholly-owned brokerage unit of bank-holding company Republic New York Corp. (RNB), has suspended its CEO pending the outcome of an investigation by regulators in Japan. Republic is in the midst of a $10.3 billion merger with London-based banking and financial services company HSBC. In Hong Kong Thursday, investors reacted to the news by sending HSBC shares down 1.8 percent. Republic shares closed unchanged at 69-3/8 Wednesday in New York.
     Investors also will assess news that Anheuser-Busch (BUD), the world's biggest brewer, is recalling millions of bottles of beer in Europe because of a packaging defect. The company said early Thursday that the recall will affect 6 percent of its total annual European volume sales of Budweiser. Anheuser-Busch shares closed unchanged at 77 Wednesday.
     Wall Street also will be watching shares of Global Crossing Ltd. (GBLX) and Frontier Corp. (FRO) amid a report that Global has raised its offer for Frontier in an effort to ensure completion of their merger. In after-hours trading Wednesday, Reuters reported, Global Crossing shares rose 1 to 25, while shares of Frontier rose 1/2 to 42-3/4.
     In other news, the vast majority of Boeing Co. 's (BA) largest union approved a three-year contract after long negotiations with management. The move averts a potentially crippling strike at the aerospace company. Boeing stock slipped 5/16 to 45 Wednesday.
     Investors will continue to follow the copper sector, after Phelps Dodge Corp. (PD) said Wednesday it will ask shareholders to approve the issuance of more stock -- something it needs to move forward with its $2.5 billion all-stock bid for Asarco Inc. (AR) and Cyprus Amax Minerals Co. (CYM). Phelps Dodge shares gained 1-13/16 at 57-3/4 Wednesday; Asarco gained 1-1/8 to 22 and Cyprus rose 13/16 to 17-3/4.
     Meanwhile, Ford Motor Co. (F) reportedly will be fined more than $1 million for at least a dozen workplace safety violations related to a February explosion in Michigan that fatally injured six workers. The fine against the automaker would be the largest workplace safety fine in state history, The Detroit News reported Thursday. Ford stock lost ¼ to 51 7/8 Wednesday.
     DuPont Co. (DD) said late Wednesday that it has filed a shelf registration for $4 billion in debt securities to give the company continued financing and refinancing flexibility. The chemical company's previous shelf registration was in 1994. DuPont shares gained 1-7/8 to 65-1/4 Wednesday.
     In other news, women's Internet network iVillage Inc. (IVIL) said late Wednesday it will acquire online community center FamilyPoint.com for $26 million in stock and cash. The price could rise $5 million if FamilyPoint meets certain requirements. IVillage closed down 3/8 at 35-15/16 Wednesday.
     Among companies slated to report earnings, Campbell Soup (CPB) is expected to post profits of 29 cents per share for its fiscal fourth quarter, down from 38 cents in the year-ago earlier.Back to top

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Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.