Stock futures creep higher as oil falls
DuPont, Dow Chemical downgraded on economic growth concerns
Last Update: 8:15 AM ET Jun 7, 2006
LONDON (MarketWatch) -- Stock market futures crept higher on Wednesday on optimism markets can recover from Federal Reserve's Chairman Ben Bernanke's hawkish interest-rate comments, with an upbeat statement on semiconductor sales growth and declining oil prices providing a boost.
S&P 500 futures rose 2.7 points at 1,268.40 and Nasdaq 100 futures improved 5.5 poitns at 1,583.00.
The Dow industrials ended 46 points lower Tuesday, bringing two-day losses to nearly 250 points after Bernanke said recent core inflation readings were at or above the upper end of a range consistent with price stability.
That's led to speculation that the Fed at its June meeting will raise rates for the seventeenth straight time, rather than hold its key interest rate at 5%. Markets also are uncertain how high the Fed will go in its rates campaign after the June meeting.
Francois Trahan, an analyst at Bear Stearns, added that the global economic picture is also undermining stocks.
"As far as June 5 is concerned, a fair assessment of the market behavior over the past few weeks will quickly show that the major indices were already substantially off long before the Fed chairman's comments hit the tape," Trahan said.
"The bottom line is that the downturn in equity markets over the past month has occurred coincident with a slowdown in economic prospects."
Deutsche Bank analysts evidently feel the same way, downgrading a number of chemical companies, including DuPont (DD : E.I. du Pont de Nemours and Company
News , chart, profile, more
Last: 42.17-0.26-0.61%
8:31am 06/07/2006
Delayed quote dataAdd to portfolio
Analyst
Create alertInsider
Discuss
Financials
Sponsored by:
DD42.17, -0.26, -0.6%) and Dow Chemical (DOW : The Dow Chemical Company
News , chart, profile, more
Last: 39.58-0.54-1.35%
8:54am 06/07/2006
Delayed quote dataAdd to portfolio
Analyst
Create alertInsider
Discuss
Financials
Sponsored by:
DOW39.58, -0.54, -1.3%) , on concerns over a slowing economy.
Overseas, the Nikkei 225 ended at a six-month low, while European stock markets wobbled between positive and negative territory. See Asia markets. See Europe markets.
The dollar started picking up ground as traders in New York filtered in, with the dollar up in particular against the euro.
Crude-oil futures weakened 74 cents at $71.76 ahead of weekly supplies figures, due out at 10:30 a.m. Eastern. See story.
Meanwhile, stronger-than-expected semiconductor demand for cellular phones and other consumer electronics prompted the Semiconductor Industry Association to boost its projection of chip sales in 2006 to growth of 9.8% from a previous forecast of 7.9%. The trade group now sees sales of $249.6 billion this year, compared with the previous forecast, issued in November 2005, of $245 billion.
The chip growth didn't filter through to all companies, however, as Fairchild Semiconductor (FCS : fairchild semiconductor intl com
News , chart, profile, more
Last: 16.98-0.13-0.76%
8:45am 06/07/2006
Delayed quote dataAdd to portfolio
Analyst
Create alertInsider
Discuss
Financials
Sponsored by:
FCS16.98, -0.13, -0.8%) reiterated its second-quarter sales outlook to be flat to down 3%.
Elsewhere, Target (TGT : target corp com
News , chart, profile, more
Last: 47.60-0.85-1.75%
8:49am 06/07/2006
Delayed quote dataAdd to portfolio
Analyst
Create alertInsider
Discuss
Financials
Sponsored by:
TGT47.60, -0.85, -1.8%) , the retailing giant, said it expects its consolidated gross margin rate to "be slightly greater" this year than its 2005 record of 31.9%.
Novartis (NVS : novartis a g sponsored adr
News , chart, profile, more
Last: 55.08-0.82-1.47%
8:31am 06/07/2006
Delayed quote dataAdd to portfolio
Analyst
Create alertInsider
Discuss
Financials
Sponsored by:
NVS55.08, -0.82, -1.5%) agreed to buy a U.K. maker of anti-infectives for over $500 million, and European pharmaceutical rival GlaxoSmithKline (GSK : GlaxoSmithKline plc
News , chart, profile, more
Last: 55.49-0.31-0.56%
8:45am 06/07/2006
Delayed quote dataAdd to portfolio
Analyst
Create alertInsider
Discuss
Financials
Sponsored by:
GSK55.49, -0.31, -0.6%) agreed a licensing deal for arthritis drugs. See story.
Arcelor finally agreed to hold face-to-face talks with Mittal Steel (MT : mittal steel co n v ny reg sh cl a
News , chart, profile, more
Last: 31.70-0.55-1.71%
8:49am 06/07/2006
Delayed quote dataAdd to portfolio
Analyst
Create alertInsider
Discuss
Financials
Sponsored by:
MT31.70, -0.55, -1.7%) , the world's leading steelmaker, which has launched a hostile bid for the Luxembourg firm. Arcelor said it has a number of questions over Mittal's business plan.
Peregrine Pharmaceuticals (PPHM : peregrine pharmaceuticals inc com
News , chart, profile, more
Last: 1.80+0.16+9.76%
9:00am 06/07/2006
Delayed quote dataAdd to portfolio
Analyst
Create alertInsider
Discuss
Financials
Sponsored by:
PPHM1.80, +0.16, +9.8%) rallied over 6% in pre-open trade after it said bavituximab, formerly known as Tarvacin, showed promise in a Phase Ia study in patients with the chronic hepatitis C virus.
Steve Goldstein is MarketWatch's London bureau chief.
