Stocks Head for Largely Flat Open. Oil Prices Fall on Economic Worries

Stocks Head for Largely Flat Open As Investors Weigh Whether Wall Street’s Run Will Continue

NEW YORK (AP) — U.S. stocks headed for a largely flat open Monday after their best week in four years as investors try to determine whether Wall Street will continue to show signs of recovery.

Less economic data is expected this week, but investors will still be eager for any signs about the nation’s economic health. On Monday, investors expect the Commerce Department’s December factory orders index will show an increase.

NEW YORK (AP) — U.S. stocks headed for a largely flat open Monday after their best week in four years as investors try to determine whether Wall Street will continue to show signs of recovery.

Wall Street is also awaiting quarterly results late Monday from names such as media company News Corp. and fast-food chain operator Yum Brands Inc.

Oil Prices Fall Below $89 a Barrel Amid Worries About US Recession and Decline in Oil Demand

Oil prices fell Monday as worries of a possible U.S. recession that would stunt oil demand more than offset the impact of fresh gains in global stock markets.

Energy investors often view stocks as a proxy for economic growth, and in some recent sessions, movements in the oil market have closely followed that of global equities. Stocks rose Monday in Asia and Europe.

Oil prices fell Monday as worries of a possible U.S. recession that would stunt oil demand more than offset the impact of fresh gains in global stock markets.

But Monday investors appeared to remain focused on weak economic data in the U.S. that pushed oil futures down almost $3 a barrel at the end of last week.

Light, sweet crude for March delivery on the New York Mercantile Exchange fell 60 cents to $88.36 a barrel in electronic trading by midday in Europe.

In London, Brent crude futures fell 39 cents to $89.05 a barrel on the ICE Futures exchange.

The Nymex contract dropped $2.79 a barrel on Friday after the U.S. Labor Department reported that employers cut 17,000 jobs last month, the first reduction in more than four years and a sign that the economy continues to weaken.

Construction spending also fell by a record amount, according to the Commerce Department, reflecting a sharp pullback in residential building.

Responding to recent oil price declines, the Organization of Petroleum Exporting Countries said Friday it will maintain current oil output levels due to concerns that a weakening global economy will result in softer demand.

However, looking ahead to the next meeting in March, Qatar’s Abdullah bin Hamad Al Attiyah said “all the possibilities are there” — shorthand for a possible cut in production, if the U.S. economy weakens enough to cut into demand.

Asian and European stock markets rose Monday, following last week’s rise on Wall Street.

China’s benchmark Shanghai Composite Index rose 8.1 percent, Hong Kong’s Hang Seng index jumped 3.8 percent and Japan’s Nikkei 225 index rose 2.7 percent.

London’s FTSE index was up 0.3 percent at midday, while the CAC-40 in Paris gained 0.5 percent and Frankfurt’s DAX was 1 percent higher.

In electronic trading in the energy market, heating oil futures dropped 1.40 cents to $2.4349 a gallon while gasoline prices fell 1.14 cents to $2.2720 a gallon.

Natural gas futures lost 10 cents to $7.64 per 1,000 cubic feet.

Associated Press writer Gillian Wong in Singapore contributed to this report.

http://biz.yahoo.com/ap/080204/oil_prices.html

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