Stocks need to get past 'quadruple-witching,' profit-taking after previous session's rally.
September 19, 2003: 7:58 AM EDT
NEW YORK (CNN/Money) - U.S. stock markets headed for a weaker open Friday, as some investors looked to cash in gains after the previous day's rally and ahead of the weekend.
But barring some wicked witchcraft, in the form of Friday's quadruple expiration of options and futures, U.S. stock markets are likely to finish with a gain for the week.
Just before 7 a.m. ET, futures pointed to a lower start for the major indexes.
The markets have to get through the expiration of contracts for stock index futures and options and individual stock futures and options. There is often volatility associated with the expirations, and it could be exacerbated by thin trading as some East Coast market participants, dealing with power outages and other remnants of Hurricane Isabel, spend the day away from Wall Street.
The major markets were within range to end the week higher, barring any major selloffs Friday. The Dow Jones industrial average was up more than 187 points on the week after Thursday's 1.2 percent advance. The Nasdaq composite index claimed gains of 54-1/2 points so far on the week, after climbing 1.4 percent Thursday. The S&P was up almost 21 points. (See chart for details.)
The Dow and S&P 500 hit new 15-month highs Thursday, both closing at their highest levels since June 18, 2002. The Nasdaq hit a new 18-month high, closing at its best level since March 12, 2002.
Hurricane Isabel left some cleaning up to do Friday, especially in the mid-Atlantic states. The federal government remained closed, while more than a million people dealt with power outages and the airports attempted to get back on schedule.
With a lack of major economic reports, some corporate news was in the spotlight early Friday.
Video and DVD rental chain Blockbuster (BBI: Research, Estimates) could gain some attention after the Wall Street Journal reported that it is discussing a merger with music and DVD retailer Columbia House.
Nike posted earnings of 98 cents per share after the close Thursday, which rose from 81 cents a share in the prior-year period and beat Wall Street's average estimate by 10 cents a share. The company also reaffirmed its full-year outlook. Credit Suisse First Boston raised its 12-month target price on the athletic-wear retailer to $70 from $60 a share, and Lehman Brothers upped its price objective to $68 from $62 a share Friday morning.
Nike (NKE: Research, Estimates) shares rose 4 percent in after-hours trading Thursday.
Asian-Pacific stocks ended mostly lower Friday, with Tokyo's Nikkei backing off the 11,000 mark after 0.9 percent drop. European markets were mostly lower at midday there. (Check the latest on world markets.)
Among U.S. stocks trading in Europe, AT&T (T: Research, Estimates) rose about 0.5 percent. The chairman of the No. 1 provider of long-distance phone service said Thursday that the company has room for more cost-cutting, even as it completes a 9 percent staff reduction.
Treasury prices inched higher, with the 10-year note yield holding steady at 4.16 percent from late Thursday. The dollar won back some of its losses against the yen but was weaker versus the euro.
Brent oil futures gained 8 cents to $25.67 a barrel in London, where gold firmed in early trading
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