Wall Street braced for more pain
Wall Street braced for more pain
By Anuj Gangahar in New York
Copyright The Financial Times Limited 2007
Published: August 1 2007 14:15 | Last updated: August 1 2007 14:15
Wall Street stocks were poised to fall again on Wednesday following the sell-off of the previous session as the problems in the subprime mortgage market looked set to inflict further pain.
About an hour before the opening bell in New York, S&P 500 futures were 7.6 points below fair value at 1,452.7 while Nasdaq futures were 10.8 points down at 1,934. Dow Jones Industrial Average futures were 85 points lower at 13,190.
But futures did rebound from earlier lows following remarks from Treasury Secretary Hank Paulson that the market impact of the US subprime mortgage fall-out was largely contained and that the global economy was as strong as it has been in decades.
Asian markets fell and European stocks were also lower in early trading.
A third Bear Stearns hedge fund has also put a halt to investor redemptions, adding to rising concern.
US stocks fell on Tuesday after American Home Mortgage Investment Corp said that lenders had cut off its access to credit and that it might have to liquidate its assets. Its shares fell by 90 per cent when they resumed following a day and a half halt. The mortgage provider also admitted it would not be able to fund $450m to $500m of loans.
Rupert Murdoch’s News Corp finally won its battle to buy Dow Jones, the publisher of the Wall Street Journal for $5.6bn.
Time Warner reported second-quarter earnings that beat analysts’ estimates and announced it had authorised an additional $5bn stock repurchase.
In economic news, the Institute for Supply Management’s report on nationwide manufacturing activity is due at 10am ET.
Also due out this morning is the National Association of Realtors’ report on pending home sales, a more forward-looking reading on existing home sales activity than its main home sales report. Economists are forecasting that index will continue to slide, falling 0.6 per cent.
Challenger, Gray and Christmas, a job placement firm, showed planned job cuts in July fell 23 per cent from June to a 12-month low.
Oil prices eased ahead of the government’s weekly report on crude inventories, due at 10.30am, after setting a record close Tuesday.
By Anuj Gangahar in New York
Copyright The Financial Times Limited 2007
Published: August 1 2007 14:15 | Last updated: August 1 2007 14:15
Wall Street stocks were poised to fall again on Wednesday following the sell-off of the previous session as the problems in the subprime mortgage market looked set to inflict further pain.
About an hour before the opening bell in New York, S&P 500 futures were 7.6 points below fair value at 1,452.7 while Nasdaq futures were 10.8 points down at 1,934. Dow Jones Industrial Average futures were 85 points lower at 13,190.
But futures did rebound from earlier lows following remarks from Treasury Secretary Hank Paulson that the market impact of the US subprime mortgage fall-out was largely contained and that the global economy was as strong as it has been in decades.
Asian markets fell and European stocks were also lower in early trading.
A third Bear Stearns hedge fund has also put a halt to investor redemptions, adding to rising concern.
US stocks fell on Tuesday after American Home Mortgage Investment Corp said that lenders had cut off its access to credit and that it might have to liquidate its assets. Its shares fell by 90 per cent when they resumed following a day and a half halt. The mortgage provider also admitted it would not be able to fund $450m to $500m of loans.
Rupert Murdoch’s News Corp finally won its battle to buy Dow Jones, the publisher of the Wall Street Journal for $5.6bn.
Time Warner reported second-quarter earnings that beat analysts’ estimates and announced it had authorised an additional $5bn stock repurchase.
In economic news, the Institute for Supply Management’s report on nationwide manufacturing activity is due at 10am ET.
Also due out this morning is the National Association of Realtors’ report on pending home sales, a more forward-looking reading on existing home sales activity than its main home sales report. Economists are forecasting that index will continue to slide, falling 0.6 per cent.
Challenger, Gray and Christmas, a job placement firm, showed planned job cuts in July fell 23 per cent from June to a 12-month low.
Oil prices eased ahead of the government’s weekly report on crude inventories, due at 10.30am, after setting a record close Tuesday.
posted by Carlos T Mock @ 6:31 AM
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