Stocks headed for weak open

By CNNMoney.com staff


NEW YORK(CNNMoney.com) -- U.S. stocks were poised to slide at the start of trading Monday as investors remained concerned about the state of the overall economy.

Dow Jones industrial average (INDU), S&P 500 (SPX) and Nasdaq (COMP) futures were lower ahead of the opening bell. Futures measure current index values against perceived future performance.

Stocks have been rising recently on speculation that the Fed will announce plans to resume large-scale purchases of U.S. Treasurys, a policy called quantitative easing, when it meets next month.

Investors might have gotten ahead of themselves last week, said Jeff Saut, chief investment strategist with Raymond James. So there's a little bit of a pullback driving futures lower, he said.

There are still cracks in the economy, as big banks have come under fire for foreclosure practices from state and federal regulators. That's caused financial stocks to falter in the past week.

But Saut expects to see the broader market resume its upward push this week, amid expectations of continued strong earnings reports. Seven Dow stocks are scheduled to release third-quarter results, as are several of the big banks and tech companies.

"Last year's third quarter was pretty lousy, so comparisons on a year-over-year basis are going to look pretty good," Saut said.

So far third-quarter results have generally come in above expectations. Of the S&P 500 companies that have posted results, 83% have topped analyst estimates, according to Thomson Reuters. But it's still early in the reporting period.

Companies: Citigroup (C, Fortune 500) posted a third-quarter profit of $2.2 billion, beating analyst forecasts as the bank reduced its credit losses to their lowest level since 2007. Shares of Citigroup rose about 2% in premarket trading.

Apple (AAPL, Fortune 500) and IBM (IBM, Fortune 500) are scheduled to post their quarterly earnings after the closing bell.

Stocks to watch also included BP (BP), which said Monday it is selling its businesses in Venezuela and Vietnam to Russian oil producer TNK-BP for $1.8 billion. The stock was up 0.3% in premarket trading.

New England utility companies Northeast Utilities (NU, Fortune 500) and NSTAR (NST) announced that they have agreed to merge, creating one of the nation's largest utility companies. The company will continue to be called Northeast Utilities after Northeast buys Nstar for $4.3 billion in stock.

Shares of Northeast Utilities rose 0.9% and shares of NStar rose 1.1% in premarket trading.

Medical device company St. Jude Medical (STJ, Fortune 500) will acquire AGA Medical Holdings (AGAM) for $20.80 per share in a cash-and-stock transaction valued at a total of $1.3 billion. Shares of St. Jude Medical rose 0.5% and shares of AGA Medical Holdings fell 1.3% in premarket trading.

Economy: Investors will take in reports on industrial production and capacity utilization for September, and the National Association of Homebuilders' housing market index.

World markets: European stocks were slightly up in midday trading. Britain's FTSE 100 inched up 0.1% and Germany's DAX rose 0.3%. The CAC 40 in France was flat.

Asian markets finished in negative territory. The Hang Seng in Hong Kong tumbled 1.2%. The Shanghai Composite fell 0.5%, and the Nikkei in Japan ended a shade lower.

Commodities and Currencies: The dollar rose against the British pound and euro, but fell versus the Japanese yen.

Gold futures for December delivery sank $9.30 to $1,362.70 an ounce.

The price of oil fell 21 cents to $81.04 per barrel, after slipping below $81 a barrel earlier.

Bonds: The price rose on the benchmark 10-year U.S. Treasury, pushing the yield down to 2.55%.  To top of page

Just the hot list include
Frontline troops push for solar energy
The U.S. Marines are testing renewable energy technologies like solar to reduce costs and casualties associated with fossil fuels. Play
25 Best Places to find rich singles
Looking for Mr. or Ms. Moneybags? Hunt down the perfect mate in these wealthy cities, which are brimming with unattached professionals. More
Fun festivals: Twins to mustard to pirates!
You'll see double in Twinsburg, Ohio, and Ketchup lovers should beware in Middleton, WI. Here's some of the best and strangest town festivals. Play
Overnight Avg Rate Latest Change Last Week
30 yr fixed3.95%3.93%
15 yr fixed3.18%3.22%
5/1 ARM3.88%3.87%
30 yr refi3.98%3.94%
15 yr refi3.19%3.22%
Rate data provided
by Bankrate.com
View rates in your area
 
Find personalized rates:
Index Last Change % Change
Dow 26,777.99 58.86 0.22%
Nasdaq 8,032.11 0.41 0.01%
S&P 500 2,953.19 2.73 0.09%
Treasuries 2.02 -0.05 -2.51%
Data as of 11:38am ET
Company Price Change % Change
Advanced Micro Devic... 28.84 -0.26 -0.89%
Bristol-Myers Squibb... 45.94 -3.40 -6.88%
Bank of America Corp... 28.05 -0.07 -0.25%
Micron Technology In... 33.58 0.34 1.01%
General Electric Co 10.38 -0.11 -1.00%
Data as of 11:23am ET

Sections

Bankrupt toy retailer tells bankruptcy court it is looking at possibly reviving the Toys 'R' Us and Babies 'R' Us brands. More

Land O'Lakes CEO Beth Ford charts her career path, from her first job to becoming the first openly gay CEO at a Fortune 500 company in an interview with CNN's Boss Files. More

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.