U.S. futures on the upside after two straight bruising sessions on Wall Street.
May 11, 2004: 7:15 AM EDT
NEW YORK (CNN/Money) - U.S. stocks could get a much-needed rebound Tuesday after Wall Street suffered two straight losing sessions on concerns that as the jobs market continues to recover, interest rates could start to rise sooner than expected.
Early Tuesday, futures pointed to a higher open for the major indexes after gains overseas helped calm some of the recent concerns about interest rates.
For details of Monday's losses, click above
Asian-Pacific stocks ended mostly higher Tuesday, with Tokyo's Nikkei index up 0.2 percent to put the brakes on a 10 percent slide over the prior six sessions. European markets began their day with gains. (Check the latest on world markets)
"After two days like last Friday and yesterday, you have to have some relief. The market was stretched like a rubberband and it will snap back," said Larry Wachtel, market analyst with Wachovia Securities."However, we could get a bounce in the first half-hour of trading, but the real test is where the market closes at 4:00 p.m."
Interest rate jitters helped send the Dow Jones industrial average down 1.3 percent Monday, with the blue-chip measure finishing below 10,000 for the first time since December. The Nasdaq composite index lost 1.1 percent (see chart for details).
"We've had very sharp moves both in the U.S. and international markets," said Khuram Chaudhry, equity strategist with Merrill Lynch in London. "A couple of things may be weighing on investors' minds, including interest rate fears, possibly weaker corporate profits going forward and higher oil prices
"At the moment, it looks as if interest rates and the labor market data are the triggers dictating what is happening in the equity markets but there is some concern that with the dramatic moves that we've seen in overseas markets, it could also possibly be something else," he added.
Among U.S. stocks trading in Europe, Cisco Systems (CSCO: Research, Estimates) rose 1.5 percent. After Tuesday's close, the leading maker of Internet connection gear is expected to report fiscal fourth-quarter earnings of 19 cents a share, up from 15 cents a share a year earlier.
May Department Stores (MAY: Research, Estimates) is expected to report first-quarter earnings Tuesday morning. Analysts surveyed by First Call expect the retailer to post a profit of 27 cents a share, up from 13 cents a share from a year earlier.
UBS upgraded entertainment conglomerate Walt Disney (DIS: Research, Estimates) to "buy" from "neutral," according to Briefing.com. "We believe improving trends at the company's theme park business as well as strong political advertising and DVD sales will offset potential weakness at ABC, which we think is still a work-in-progress," the firm said in its research note to clients.
Disney is expected to report fiscal second-quarter earnings after Wednesday's close. Analysts surveyed by First Call expect the company to post a profit of 21 cents a share, up from 11 cents a share a year earlier.
Treasury prices gained in early trading, sending the 10-year note yield down to 4.78 percent from 4.79 percent late Monday. The dollar gained against the euro but was down a little versus the yen.
Brent oil futures slipped 27 cents to $35.70 a barrel in London, where gold rose.
O Clubeinvest.com informa que nenhuma da informação
aqui facultada deverá ser entendida como conselho ou recomendação
de qualquer tipo de transacção ou investimento.
