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Markets & Stocks
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Markets are all ears
Investors stay tuned for Bush, Greenspan speeches; futures slide on weaker-than-expected jobs data.
September 12, 2002: 8:41 AM EDT
By Parija Bhatnagar, Mark M. Meinero & Meghan Collins, CNN/Money Staff Writers

NEW YORK (CNN/Money) - U.S. stocks could open weakly Thursday as investors appear unlikely to commit money ahead of important speeches from President Bush on the U.S. stance on Iraq and Federal Reserve Chairman Alan Greenspan on the state of the economy.

Around 8:40 a.m. ET, the Nasdaq-100 and the Standard & Poor's 500 futures slipped lower after the latest jobs report came in weaker than expected.

"The general trend is weaker after yesterday (Wednesday). The key will be comments from the Fed and how adamant Mr. Bush is about getting support (to invade Iraq)," said Khuram Chaudry, Merrill Lynch equity strategist in London.

Bush will make his administration's case for global action against Iraqi leader Saddam Hussein in a speech to the United Nations. Concern that the United States is planning an attack against Iraq has been a drag on the equity markets, particularly because of worries that rising oil prices could cripple business.

The Bush speech is scheduled about one hour after the markets open.

 
For details of Wednesday's session, click above.

Greenspan testifies before the House Budget Committee about a half-hour after the start of trading. He's expected to elaborate on the "beige book" report issued Wednesday that found indications of slowing economic growth.

In the morning's economic update, U.S. jobless claims rose 19,000 to 426,000 in the latest week versus expectations for a decline to 400,000. Any number above 400,000 is considered a sign of weakness in the economy.

The major indexes edged lower in Wednesday's trading session shortened by the commemoration of the terrorist attacks. The Dow Jones industrial average finished 21 points lower, while the Nasdaq composite index lost 4 points (see chart).

Asia-Pacific stocks finished mostly higher Thursday, with Tokyo's Nikkei index up 0.2 percent. European markets opened lower in response to the Fed's economic report.

Treasury prices rose, with the 10-year note yield at 4.03 percent. The dollar pulled back against the yen and euro.

Brent oil futures rose 16 cents to $28.72 a barrel in London, where gold rose in early trading.

In corporate news, telecom company Ericsson (ERICY: up $0.03 to $0.66, Research, Estimates) reiterated its profit forecast for 2003 despite the ongoing trend of a depressed mobile network market. Ericsson shares rose 3 cents to 66 cents Wednesday.

Semiconductor stocks could face early turbulence Thursday after Lehman Brothers reduced its 2003 growth forecast for chipmakers, citing weak fundamentals and no timetable on the horizon for a sector recovery.

Morgan Stanley downgraded fast-food restaurant chain Jack-in-the-Box (JBX: down $0.05 to $24.60, Research, Estimates) to "underperform" from "equal weight" and cut its 2002 and 2003 estimates on the stock, saying it believes the company is at more risk than its peers from rising competition. The company shares shed 5 cents to $24.60 Wednesday.

Goldman Sachs cut its full-year cash flow estimate on media and Internet company AOL Time Warner (AOL: Research, Estimates), citing continued weakness in the company's AOL division. AOL Time Warner is the parent company of CNN/Money. AOL shares dipped 11 cents to $13.25 Wednesday.

Wal-Mart Stores (WMT: Research, Estimates) said after the bell Wednesday its 2002 earnings could be lowered from a penny to 2 cents a share if the Securities and Exchange Commission alters an accounting rule governing the expensing of stock options, according to a filing with the SEC. The discount retailer had planned to begin expensing stock options in fiscal 2004. Wal-Mart shares fell 58 cents to $54.20 Wednesday.

Cruise operator P&O Princess (POC: Research, Estimates) rose 4 percent in European trading after antitrust staff at the Federal Trade Commission recommended either Carnival (CCL: Research, Estimates) or Royal Caribbean Cruises (RCL: Research, Estimates) be allowed to acquire the company.

After the close, graphics software maker Adobe Systems (ADBE: Research, Estimates) issues its quarterly results. It's expected to post a fiscal third-quarter profit of 19 cents a share, down from 28 cents a year earlier, according to a consensus of analysts surveyed by First Call. Adobe shares were 1 percent lower in European trading Thursday.

Tyco International (TYC: Research, Estimates) could draw attention amid reports that former CEO Dennis Kozlowski and two other ex-executives will be indicted Thursday on charges that include conspiracy to commit fraud and larceny. This would be in addition to the sales tax evasion charges to which Kozlowski pleaded innocent in June. J.P. Morgan upgraded the stock to "buy" from "long-term buy."

The diversified manufacturer, which is expected to bring its own suit against Kozlowski, rose 70 cents to $18.50 in before-hours trading Thursday.  Top of page




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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.