Futures signal fall on Wall St; AIG, Citi in focus

Reuters: [2008-05-09 11:00:00]

By Eva Kuehnen

FRANKFURT, May 9 (Reuters) - U.S. index futures fell on Friday after the world's largest insurer, American International Group <AIG.N>, posted record quarterly losses, and as the oil price hit new heights.

Financials are set to take the limelight as investors digest AIG's weaker-than-expected results, which it reported after the bell on Thursday.

AIG posted a $7.81 billion quarterly loss after writing down assets linked to U.S. subprime mortgages -- a problem for many financial companies that has led to a global credit crisis -- and said it would raise $12.5 billion to boost its balance sheet.

Its shares fell 9.3 percent to 26.50 euros by 0834 GMT in Frankfurt trade <AIG.F>.

"Uncertainty in the credit market remains and AIG brings it to the fore again," said Emil Heppel, analyst at Landesbank Berlin.

Citigroup Inc <C.N> will be in focus after a person familiar with the situation told Reuters the bank will present plans to sell as much as $400 billion of assets when it meets with investors and analysts on Friday. Citigroup declined to comment.

Its shares <TRV.F> fell 1.2 percent in Frankfurt.

By 0835 GMT, June Dow Jones futures <DJc1> were down 0.5 percent, June S&P 500 futures <SPc1> fell 0.5 percent and June Nasdaq 100 futures <NDc1> dropped 0.4 percent. The indicative Dow Jones index <.DJII> was down 1.1 percent.

Oil rose to a record near $125 a barrel on Friday and U.S. crude for June delivery <CLc1> rose 0.6 percent to $124.45, which could boost energy stocks.

On Thursday, a surge in global commodity prices propelled mining and energy shares higher, while technology shares gained after a top strategist said they were good value.

The Dow Jones industrial average <.DJI> rose 0.41 percent, the Standard & Poor's 500 Index <.SPX> gained 0.37 percent and the Nasdaq Composite Index <.IXIC> added 0.52 percent.

Friday's agenda for economic data and corporate results is thin, featuring data on March international trade at 1230 GMT and includes updates from Clear Channel Communications Inc <CCU.N> and Liberty Media Corp <LINTA.O>. (Editing by David Hulmes)

((eva.kuehnen@reuters.com; +49 69 7565 1207; Reuters Messaging: eva.kuehnen.reuters.com@reuters.net))

Keywords: MARKETS STOCKS US EUROPE

Wall Street seen slightly firmer, AIG earnings eyed

Reuters: [2008-05-08 11:07:00]

By Eva Kuehnen

FRANKFURT, May 8 (Reuters) - U.S. stock index futures edged up on Thursday, pointing to a slim recovery on Wall Street from strong losses in the previous session as investors turn their attention to results from American International Group <AIG.N>.

By 0856 GMT, June Dow Jones futures <DJc1> were up 0.1 percent, June S&P 500 futures <SPc1> rose 0.2 percent and June Nasdaq 100 futures <NDc1> gained 0.1 percent. The indicative Dow Jones index <.DJII> was down 0.6 percent.

U.S. stocks tumbled on Wednesday, on concerns about inflation and higher interest rates as oil jumped to a record above $123 a barrel.

Oil prices still hovered near the record high on Thursday with U.S. crude for June <CLc1> at $123.06 a barrel by 0904 GMT.

Stocks such as home builders and retailers may be hit by concern that rising prices could restrict demand and exacerbate fallouts from the housing slump.

Investors' main focus will be on an earnings update from AIG, the world's largest insurer, which is expected to post a second consecutive quarterly loss, hurt once more by investment losses, including exposure to crippled mortgage investments.

"This is the sore spot the market still has to work on," said David Pieper, analyst at German bank LBBW in Stuttgart.

"The financial crisis is far from being over. I don't think we can give the all-clear for financials just yet. The situation on the real estate market is still very weak and does not show any tendency towards stabilisation," he said.

Other earnings of the day include Blockbuster <BBI.N>, Hewlett-Packard <HPQ.N> and JC Penney <JCP.N>.

On the economic front weekly initial jobless claims are due at 1230 GMT and March wholesale trade at 1400 GMT.

CARPHONE AND BEST BUY TEAM UP

Best Buy <BBY.N> will be in focus after Britain's Carphone Warehouse <CPW.L> -- Europe's biggest independent mobile retailer -- said it would sell a 50 percent stake in its retail unit to the U.S. electronics chain for 1.1 billion pounds ($2.2 billion) and said they would launch a new company to expand across Europe.

In Europe, Best Buy shares <BBY.F> fell 3.6 percent from their last close in Frankfurt, while Carphone Warehouse shares were down 2.3 percent on London's FTSE 100 index <.FTSE>.

Speculation had surfaced continually in the market over some kind of tie-up between the two companies in recent weeks, according to traders.

Meanwhile, Microsoft <MSFT.O> <MSFT.F> fell 1 percent in Frankfurt after its Chief Research and Strategy Officer said the company had no plans to make another approach for Yahoo <YHOO.O> after it pulled its $47.5 billion bid earlier this month. Yahoo shares rose 0.4 percent in Frankfurt <YHOO.F>.

On Wednesday, the Dow Jones industrial average <.DJI> slid 1.59 percent, the Standard & Poor's 500 Index <.SPX> fell 1.81 percent and the Nasdaq Composite Index <.IXIC> lost 1.80 percent.

After the bell shares in Crocs Inc <CROX.O> rose 12 percent to $11.15 in extended trade on Wednesday after the maker of the popular plastic shoes posted its quarterly results. (Editing by David Cowell) ((eva.kuehnen@reuters.com; +49 69 7565 1207; Reuters Messaging: eva.kuehnen.reuters.com@reuters.net)) ($1=.5120 Pound)

Keywords: MARKETS STOCKS US EUROPE/

U.S. stock futures dip; Sprint, Clearwire eyed

Reuters: [2008-05-07 12:20:00]

By Blaise Robinson

PARIS, May 7 (Reuters) - U.S. stock index futures moved lower on Wednesday, pointing to a weaker start on Wall Street as investors book profits after weak consumer data and ahead of March U.S. monthly pending home sale data due at 1500 GMT.

"Weaker than expected ABC consumer confidence numbers look to be the main reason for the early weakness in futures," CMC Markets dealer Claire Collingwood wrote in a note, referring to weekly ABC News/Washington Post Consumer Comfort Index figures which fell to a 15-year low.

Sprint Nextel <S.N> and Clearwire Corp <CLWR.O> will be in the spotlight after sources said the two companies were close to unveiling a $12 billion joint venture. Sprint Nextel's shares traded in Frankfurt <S.F> gained 14 percent.

By 0938 GMT, Dow Jones futures <DJc1> were down 0.2 percent, S&P 500 futures <SPc1> down 0.2 percent and Nasdaq futures <NDc1> down 0.2 percent.

Energy shares will be in focus also with oil around $122 a barrel ahead of U.S. weekly inventory data, having hit a new peak on Tuesday amid supply worries and a forecast from Goldman Sachs that oil will be over $200 a barrel within two years.

Walt Disney Co <DIS.N> may rise after posting stronger-than-expected quarterly profit after the bell on Tuesday, sending its shares up more than 3 percent.

Cisco Systems Inc <CSCO.O> will also attract investors' attention after the network equipment maker posted a profit that topped estimates after the bell, boosting its shares in after-hours trade.

Investors will also comb through quarterly results of Devon Energy <DVN.N>, Marsh & McLennan <MMC.N> and News Corp <NWS.N> for more insight on the impact of a slowdown in economic growth on corporate results.

Rupert Murdoch's News Corp is expected to report a 20 percent rise in profit, helped by cable TV affiliate fees and advertising.

Insurance brokerage Marsh & McLennan is expected to report quarterly earnings that are slightly ahead of those a year ago.

On the macro front, U.S. monthly pending home sale data -- a good forward-looking barometer of the health of the housing market -- will set the tone.

The market is expecting a 1 percent drop after a 1.9 percent drop in the previous month, and that may be enough to inspire optimism among investors looking for sighs that the housing market has hit a bottom.

Investors will also keep an eye on the productivity data as well as labour cost data for the first quarter.

U.S. stocks rose on Tuesday as Fannie Mae's <FNM.N> reassuring comments about the credit and housing markets buoyed financial shares, while record crude oil prices lifted shares of energy companies.

The Dow Jones industrial average <.DJI> finished up 0.4 percent, at 13,020.83, the Standard & Poor's 500 Index <.SPX> ended up 0.8 percent, at 1,418.26, and the Nasdaq Composite Index <.IXIC> closed up 0.8 percent, at 2,483.31.

So far this year, the Dow is down 1.8 percent, the S&P 500 down 3.4 percent and the Nasdaq Composite is down 6.3 percent. (Editing by Louise Ireland) ((blaise.robinson@reuters.com; +33 1 4949 5269; Reuters Messaging: blaise.robinson.reuters.com@reuters.net))

Keywords: MARKETS STOCKS US EUROPE

Wall St seen flat; techs, consumer sector in focus

Reuters: [2008-05-06 11:58:00]

By Toni Vorobyova

LONDON, May 6 (Reuters) - U.S. stocks are likely to open steady on Tuesday, pausing after the previous session's sharp sell-off, with investors looking ahead to results from the technology, housing and consumer sectors.

Results after Wall Street's closing bell from Cisco Systems <CSCO.O> will likely be the highlight of the earnings calendar.

Insight into the mindset of U.S. consumers will come from results from Sara Lee <SLE.N>, maker of baked goods, deli meats and sausages, and from cosmetics firm Estee Lauder <EL.N> and retailer Walt Disney <DIS.N>.

In the housing sector, quarterly earnings are released by largest U.S. home builder D.R. Horton <DHI.N> and construction materials firm Vulcan Materials Corp <VMC.N>.

Mortgage financing company Fannie Mae is expected to post a steep first-quarter loss on Tuesday due to the U.S. housing market slump [ID:nN05371898].

From a technical point of view, the Dow Jones Industrial Average's <.DJI> failure to stay above the 13,000 mark -- after breaking above it for the first time in four months last week -- suggested scope for a move lower, said Tom Hougaard, chief market strategist at City Index.

"My belief is that we are still in a bear market ... The highs that we saw (last week) after the Fed and the non-farm payrolls, I think that was a top of some description and that was evidently shown on Friday, and especially yesterday when the market dropped 100 points," he said.

The Dow rose 0.4 percent on Friday after monthly employment data showed a smaller-than-expected contraction in the U.S. labour market.

At 0927 GMT, June Dow Jones <DJc1> and Standard & Poor's 500 futures <SPc1> were steady, while Nasdaq 100 futures <NDc1> were down 0.1 percent.

Cisco Systems, the largest maker of the routers and switches that direct traffic on data networks, releases results after hours on Tuesday.

"Many will be looking for strong numbers from Cisco to continue the bullish tone in the tech sector," CMC Markets said in a research note.

Cisco shares were last quoted up 0.5 percent from their last European close at 17.02 euros <CSCO.F>.

On Monday, the Dow Jones industrial average finished down 88.66 points, or 0.68 percent, at 12,969.54. The S&P <.SPX> shed 6.41 points, or 0.45 percent, to 1,407.49, and the Nasdaq Composite Index <.IXIC> lost 12.87 points, or 0.52 percent, to 2,464.12.

Bank of America <BAC.N> said late on Monday that it remained committed to buying troubled lender Countrywide Financial Corp <CFC.N>, dispelling worries about the acquisition, which had weighed on banking stocks and the broader U.S. market during the day's trading. [ID:nN05419461]

However, news of 5,500 job cuts at Swiss bank UBS <UBSN.VX> on Tuesday kept banking shares under pressure in Europe.

"Financials are in a bear market, and I think that will last some time," said Hougaard. "I would be happy to short the living daylights out of them."

Shares in major retailer Target <TGT.N> rose after the bell on Monday after it announced a deal to sell a 47 percent stake in its credit card business to JP Morgan Chase & Co <JPM.N> for an initial investment of $3.6 billion.

Target shares were last quoted down 1.6 percent from their last close in Frankfurt at 33.170 euros <TGT.F>, though no trades had taken place.

Pharmaceutical wholesaler McKesson Corp <MCK.N> and oil and gas firm Andarko Petroleum <APC.N> posted better-than-expected earnings late on Monday, while results from Weight Watchers <WTW.N> and Principal Financial Group <PFG.N> disappointed.

With the oil price holding near record highs <CLc1>, evidence of how expensive fuel is affecting U.S. consumers will come later in the session from the Redbook and ICSC weekly sales data, and the ABC/Washington Post consumer confidence index. (Editing by Will Waterman) ((antonina.vorobyova@reuters.com; Tel: +44207 542 7958, Reuters Messaging: antonina.vorobyova.reuters.com@reuters.net))

Keywords: MARKETS STOCKS US EUROPE

UPDATE 1-Wall St seen lower after Microsoft drops Yahoo bid

Reuters: [2008-05-05 12:48:00]

(Repeats to add 'UPDATE 1' prefix to headline)

(Adds Sprint Nextel share price in Frankfurt)

FRANKFURT, May 5 (Reuters) - U.S. stock index futures pointed to a weaker opening on Wall Street on Monday, with Yahoo Inc <YHOO.O> in focus after Microsoft Corp <MSFT.O> walked away from its $47.5 billion bid for the Internet search company.

At 1021 GMT Dow Jones futures <DJc1> were down 0.4 percent, S&P 500 futures <SPc1> were down 0.5 percent and Nasdaq futures <NDc1> 0.5 percent lower.

Microsoft on Saturday sweetened its initial $31-per-share offer for Yahoo to $33, but then withdrew from the talks when Yahoo Chief Executive Jerry Yang dug in for a price of $37.

Yahoo shares fell 18.9 percent to 14.68 euros in Frankfurt by 1022 GMT, while Microsoft <MSFT.F> rose 3.9 percent.

Yahoo shares closed at $28.67 on Friday on Wall Street.

"Yang is certainly under a lot of pressure now," said Roland Hirschmueller, an equities trader at German brokerage Baader. "His days are numbered if he doesn't manage to come with an alternative strategy."

Google <GOOG.O> could be the big winner from the end of Microsoft-Yahoo talks as sources familiar with the matter said Yahoo was likely to push for an advertising partnership with the Web search leader. A tie-up with Google should help boost Yahoo's operating performance in the near term.

Google shares <GOOGa.F> rose 2.1 percent in Frankfurt.

Yahoo is also still considering a deal with other Internet media and advertising majors such as Time Warner Inc's <TWX.N> AOL, people familiar with the discussions said.

Elsewhere on the merger and acquisition front shares in Sprint Nextel <S.N> <S.F> rose 11 percent in Frankfurt after media reports said Deutsche Telekom <DTEGn.DE> was looking at a possible purchase of the U.S. wireless company.

However, traders expressed some scepticism that such a deal was politically feasible. Deutsche Telekom shares dipped 0.8 percent.

Later in the session the Institute for Supply Management is due to release its April non-manufacturing index at 1400 GMT. Economists in a Reuters survey forecast a PMI reading of 49.1 versus 49.6 in March.

On Friday U.S. stocks made modest gains after jobs data that offered fresh evidence the economic slowdown is not as severe as feared, but technology shares faded on a surprise loss from Sun Microsystems Inc <JAVA.O>.

The Dow Jones industrial average <.DJI> ended the session up 0.4 percent, the Standard & Poor's 500 Index <.SPX> was up 0.3 percent and the Nasdaq Composite Index <.IXIC> fell 0.2 percent. (Reporting by Eva Kuehnen; Editing by Greg Mahlich) ((eva.kuehnen@reuters.com; +49 69 7565 1207; Reuters Messaging: eva.kuehnen.reuters.com@reuters.net))

Keywords: MARKETS STOCKS US EUROPE/