Futures edge lower on oil rebound, credit worries
|
|
|
By Kristina CookeNEW YORK (Reuters) - Stocks index futures edged lower on Monday after Friday's sharp gains as the price of oil rebounded and credit concerns nagged.Lehman Brothers shares fell about 10 percent in European trading after a top regulator voiced concern about state-run Korea Development Bank's interest in buying a global bank.Shares of Lehman Brothers, which has been hard hit by the credit crisis, had soared on Friday after KDB said it was open to the acquisition of an overseas financial institution, naming Lehman as one option.Any news on when and whether the U.S. Treasury will take steps to rescue mortgage finance giants Fannie Mae and Freddie Mac could determine market direction. Investors increasingly believe a federal bailout of the two mortgage finance companies will be needed as they face mounting losses.Investors will also scrutinize existing home sales data for July at 10 a.m. (1400 GMT) for more clues on the state of the housing market."I think the focus is going to be similar to last week, with the market awaiting news out of the Treasury regarding Fannie Mae and Freddie Mac and whether it moves to smooth market anxiety," said Peter Cardillo, chief market economist at Avalon Partners in New York."Also this morning we are seeing a little bit of a rebound in oil prices."S&P 500 futures fell 2.60 points and were slightly below fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract.Dow Jones industrial average futures fell 7 points and Nasdaq 100 futures slipped 2.50 points.Further fueling concerns about fallout from the credit crisis, bank regulators closed Columbian Bank and Trust Company on Friday, the ninth U.S. bank to fail this year, as the weakening economy and falling home prices take their toll on financial institutions.Oil rose by more than $1 a barrel despite a rising U.S. dollar, as traders saw buying opportunities after prices fell more than $6 in the previous session.European stock markets edged lower as oil rose, but volume was thin due to a British local holiday that closed London markets.U.S. stocks rallied on Friday to score their best daily gain in two weeks as hopes Lehman Brothers may attract a major investor buoyed financial stocks and oil prices plunged.(Editing by Kenneth Barry)
(c) Reuters 2008. All rights reserved. Republication or redistribution of Reuters content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters and the Reuters sphere logo are registered trademarks and trademarks of the Reuters group of companies around the world.
|
|
|
|
|
|
Related News
Five more US bank failures bring total for 2009 to 120
New York - Bank failures in the United States have risen to 120 this year as five more regional institutions were added to the list, the US agency that guarantees the safety of bank deposits said. United Commercial Bank in San Francisco with assets o...
US stocks climb slightly despite double-digit jobless rate
New York - US stocks posted mild gains Friday to end the week as investors shrugged off government figures that put the unemployment rate above 10 per cent. The Labour Department said the jobless rate hit 10.2 per cent in the month of October, the hi...
US joblessness hits 10.2 per cent, highest in 26 years - Summary
Washington - The US unemployment rate surged to 10.2 per cent in October, the highest in 26 years as another 190,000 people lost their jobs, the Labour Department reported Friday. The figure comes after a 9.8-per-cent jobless rate in September and wa...
US joblessness jumps to 10.2 per cent, highest since 1983 - Update
Washington - The US unemployment rate surged to 10.2 per cent in October, the highest in 26 years, as another 190,000 people lost their jobs during the month, the US reported Friday. The figure reported by US Labour Department came after the 9.8 per ...
US jobless rate jumps to 10.2 per cent
Washington - The US unemployment rate surged to 10.2 per cent in October as another 190,000 people lost their jobs, according to US Labour Department figures released Friday. The jobless rate stood at 9.8 per cent in September. Unemployment had been ...
Bulls stop James, edge Cavs - Summary
Los Angeles - The King couldn't deliver in the clutch. Luol Deng and Joakim Noah combined to deny LeBron James a potential game-winning drive in the final seconds as and the visiting Chicago Bulls snapped the Cleveland Cavaliers' three-game winning...
Mortgage lender Fannie Mae posts nearly 19-billion-dollar loss
Washington - US mortgage lender Fannie Mae said Thursday that it would seek 15 billion dollars in federal aid, after posting its ninth consecutive quarterly loss. Fannie Mae reported a net loss of 18.9 billion dollars in the third quarter of 2009, co...
|
|
|
|
|
|
|
|
