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Stocks Poised for Lower Open
Monday July 30, 7:05 am ET
By Madlen Read, AP Business Writer
U.S. Stocks Poised for Lower Open on Wall Street Ahead of Earnings


NEW YORK (AP) -- Stock futures slipped Monday, as Wall Street remained jittery about a possible credit crunch putting a crimp on U.S. growth.
Investors were also disappointed to hear that China tightened its credit again to cool its soaring economy, and ordered its banks to increase their reserves for a sixth time this year.


Last week was the worst week in five years for the Dow Jones industrial average and the Standard & Poor's 500 index. On Thursday and Friday, the Dow fell a total of 585 points, as Wall Street caved under growing worries about a shakier lending climate.

Investors got a bit of hope for a recovery Monday when Japan's Nikkei stock average rose 0.03 percent, Hong Kong's Hang Seng index rose 0.8 percent, and China's Shanghai Composite Index jumped 2.2 percent to a new record.

And some of Monday's earnings reports brought good news. Health benefits provider Humana Inc. said its second-quarter profit more than doubled year-over-year, while HSBC Holdings PLC, Europe's largest bank by market value, said that while lending risks remain, its first-half earnings rose by 25 percent.

But market volatility is high and credit concerns are running deep, so it's unclear if any of the day's news will allay investors' fears of a major correction.

Dow Jones industrial average futures expiring in September fell 26, or 0.20 percent, to 13,258. The Standard & Poor's 500 futures fell 1.00, or 0.07 percent, at 1,457.00, while the Nasdaq 100 futures fell 2.25, or 0.11 percent, to 1,961.25.

High energy prices, which contribute to inflation, are also a concern for investors. Last Friday, crude oil prices closed within a penny of their record close of $77.03 a barrel, reached in July 2006. Oil futures fell 42 cents to $76.60 a barrel in pre-opening trading on the New York Mercantile Exchange.

The dollar fell against most other major currencies. Gold prices rose.

In European trading, Britain's FTSE 100 was up 0.12 percent, Germany's DAX index was up 0.04 percent, and France's CAC-40 was down 0.43 percent.

New York Stock Exchange: http://www.nyse.com

Nasdaq Stock Market: http://www.nasdaq.com

http://biz.yahoo.com/ap/070730/wall_street.html?.v=5