Futures point to lower start for Wall Street as problems in Iraq, Russia push crude back above $39.
July 6, 2004: 6:55 AM EDT
NEW YORK (CNN/Money) - Investors will be keeping one eye on oil prices and another on corporate earnings as Wall Street gets back to work Tuesday after a long holiday weekend.
Stocks are poised for a lower start, with S&P and Nasdaq futures falling in before-hours trading.
The drop is due to worries about oil prices, which jumped back above $39 a barrel Tuesday after new attacks in Iraq that cut production there, as well as financial problems at Russian oil company Yukos, which could cut shipments from the world's No. 2 oil exporter.
The news sent oil prices sharply higher, with U.S. light crude for August delivery up 86 cents to $39.25 a barrel in electronic before-hours trading. Brent oil for August delivery gained 62 cents to $36.92 a barrel in London.
Friday saw U.S. stocks fall following a disappointing employment report.
The Dow Jones industrial average lost 0.5 percent while the Nasdaq composite index dipped 0.4 percent. (Click on the chart for details).
Bonds were little changed in early trading, leaving the yield on the benchmark 10-year note at about 4.46 percent.
The dollar edged higher versus the yen and little changed against the euro.
Gold rose slightly in European trading.
In corporate news, aluminum maker Alcoa (AA: Research, Estimates) becomes the first Dow component to report earnings after the bell Tuesday -- one of the opening bells of the second-quarter earnings season. The consensus forecast is that profits rose to 48 cents a share from 27 cents a year earlier.
Delta Air Lines (DAL: Research, Estimates), the nation's No. 3 carrier, will be seeking $1 billion in wage concessions from its pilots, USA Today reported.
The newspaper said that give-back would be up sharply from management's earlier demand for $800 million in wage cuts. Executives at the airline have said the Atlanta-based airline will be forced to file for bankruptcy court protection from creditors without wage cuts.
Sony saw its movie "Spider-Man 2" set a series of box office records, bringing in $180.1 million in U.S. ticket sales its first six days in theaters here.
The only economic report due Tuesday is the national purchasing managers' reading on the services sector.
The Institute for Supply Management service index is forecast to slip to 65.0 for June from 65.2 in May, according to economists surveyed by Briefing.com. But any reading over 50 indicates growth in the sector.
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