Custom Search

LONDON (MarketWatch) - U.S. stock futures edged higher on Wednesday after
inflation outside of food and energy didn’t rise as quickly as forecast, with
ex-Federal Reserve Chairman Alan Greenspan anticipating a housing market bottom
next year.

S&P 500 futures rose 4 points to 1,408.70 and Nasdaq 100 futures added 5.5 points
to 2,011.50. Dow industrial futures rose 30 points.

U.S. stocks were mixed on Tuesday, with the blue chips hurt by Wal-Mart Stores’
cautious second-quarter outlook, Hewlett Packard’s acquisition of EDS and Federal
Reserve Chairman Ben Bernanke’s comments on lingering financial market tension.

The Dow industrials lost 44 points, the S&P 500 fell a half-point while the
tech-heavy Nasdaq Composite ended 6 points higher on reports Carl Icahn has taken
a stake in Yahoo to push it into the hands of Microsoft.

Wednesday’s key report came from the Labor Department, which said U.S. consumer
inflation moderated in April.

The consumer price index increased 0.2% in April after a 0.3% gain in the
previous month. The core CPI, which excludes food and energy costs, was up 0.1%
in April after rising 0.2% in March.

Economists polled by MarketWatch were expecting the CPI and the core rate to rise
0.2%.

After a number of Fed speakers on Tuesday, the still-influential Greenspan told
an audience in Asia that U.S. house prices will bottom in the early part of 2009
when the market absorbs a build-up of inventories. Another ex-Fed chairman, Paul
Volcker, is due to testify before the Joint Economic Committee on systemic risk.

The Bank of England said in a quarterly report that British inflation will be
above 3% for several quarters. The central bank targets 2% inflation.

The dollar advanced vs. rivals, notably the Japanese yen.

Crude-oil futures slipped 5 cents to $125.73 a barrel ahead of the release of
weekly energy inventory data.

Clear Channel Communications (CCU) settled litigation with a number of banks and
agreed a revised $17.9 billion, or $36 a share, takeover by Bain Capital Partners
and Thomas H. Lee Partners. Banks led by Citigroup had initially balked at the
financing but agreed to the new terms, which are at 8% discount to a deal reached
in May.

Sony (SNE) reported a bigger-than-forecast profit during its fiscal fourth
quarter.

Macy’s (M) reported a loss for the first quarter but held onto 2008 guidance,
sending shares up 5% in pre-open trade.

Freddie Mac (FRE) reported its third straight loss as it said it’s going to issue
$5.5 billion in new stock. Freddie shares rose 3.9% in pre-open trade.

Whole Foods (WFMI) dropped 9% after the organic grocery chain reported a
worse-than-forecast 13% profit fall.

John Deere & Co. (DE) fell 6% after missing fiscal second-quarter estimates.

Electronic Arts (ERTS) fell 2.9% after the suitor of Take-Two Interactive (TTWO)
reported a widening quarterly loss and said fiscal first-half earnings would be
worse than forecast due to accounting charges and bonus expenses.

Overseas markets were split, with a 1.2% rise in Tokyo, slight falls in Hong Kong
and a mixed performance in Europe.

Possibly Related Posts:

• US debt clock runs out of digits —- BBCNews
• US to buy stake in banks; first since Depression
• A Great 2008-2009 Depression
• the fear is still there - doubt it will be gone by monday.
• Quote by Thomas Jefferson “If a Central Bank is ever created in America- Through Inflation and Deflation the “Bankers” will Rob The Americans”

Comments