U.S. markets to consider Kerry's big win, Eisner's big meeting and ISM services.
March 3, 2004: 5:51 AM EST
NEW YORK (CNN/Money) - John Kerry's virtual clinching of the Democratic presidential nomination and Michael Eisner's defense of his position as head of Walt Disney Co. will be among the factors to be considered when U.S. stock trading begins Wednesday.
At 5:45 a.m. ET, futures pointed to a lower start for the major indexes.
Kerry just about locked up his party's nomination Tuesday night with victories in nine of ten states with Democratic contests, losing only Vermont to the favorite son candidacy of Howard Dean. Kerry's chief rival, Sen. John Edwards of North Carolina, Edwards is expected to withdraw from the race Wednesday, leaving his colleague from Massachusetts virtually unopposed.
Polls show that one major reason for Kerry's success is the feeling among Democrats that he can beat President Bush in the fall. But whether that sits well with Wall Street could be reflected in the market's activity Wednesday.
For Dow component Walt Disney (DIS: Research, Estimates), Wednesday is a day of reckoning as a campaign to oust chairman and CEO Michael Eisner reaches its climax. Disney officials have said they expect 30 percent of shareholders to vote against Eisner at the annual meeting in Philadelphia.
Among U.S. stocks trading in Europe, Disney shares were unchanged early Wednesday.
On the economic front, the Institute for Supply Management releases its February report on the services sector. Economists surveyed by Briefing.com expect the index to have fallen to 62 from 63.6 in January, but that still would reflect an expansion of the sector.
The Dow Jones industrial average is coming off a 0.8 percent decline Tuesday, while the Nasdaq composite index lost 0.9 percent (see chart for details).
Asian-Pacific stocks ended mostly lower, with Tokyo's Nikkei index down 0.1 percent. European markets started Wednesday lower. (Check the latest on world markets)
Treasury prices slipped in early trading, sending the 10-year note yield up to 4.06 percent from 4.04 percent late Tuesday. The dollar continued this week's rally against the yen and euro.
Brent oil futures pulled back 27 cents to $32.88 a barrel in London. Gold prices slid.
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