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CBS MarketWatch
Stock futures move markedly higher in pre-market
Monday March 3, 8:32 am ET
By Michael Baron


NEW YORK (CBS.MW) - U.S. stock futures look poised for a positive open Monday as geopolitical tensions seemed to ease slightly with Iraq beginning missile destruction over the weekend.
The capture of a key al-Qaeda official also contributed to the early bullishness.

S&P futures gained 7.40 to 848.30, and Nasdaq futures added 7.50 to 1,018 in the pre-market.

Last week, the Dow Jones Industrial Average (CBOT:^DJI - News) fell 1.6 percent, or 127 points, to finish at 7,891.08, while the Nasdaq Composite (NasdaqSC:^IXIC - News) ended 11 points lower, or 0.8 percent, at 1,337.52. The S&P 500 (^GSPC - News) dipped 8 points, or 0.9 percent, to finish at 841.15.

Consumer spending falls slightly in January
For the second time in the past 14 months, U.S. consumers reduced their spending in January, cutting real expenditures by 0.3%, the Commerce Department estimated Monday.

Meanwhile, incomes rose 0.3 percent. Real disposable incomes grew 0.2 percent. The consensus estimate was for a gain of 0.4 percent in incomes and a 0.1 percent rise in consumer spending.

The personal savings rate rose to 4.3 percent from 3.9 percent. Inflation remained subdued. The personal consumption expenditure price index rose 0.1 percent in January. Spending on durable goods fell 5.7%, the biggest drop in 13 years. Wages and salaries in the private sector fell slightly.

Corporate buybacks improving
Liquidity Trim Tabs said it has turned "bullish" on the stock market from "cautiously bullish" as corporate share repurchases appears to be improving, new offerings have declined and outflows from U.S. equity funds, considered at contrarian indicator at extremes, are at their highest levels since September 2002.

The firm noted that buybacks rose to $12.5 billion in February while new offerings fell to $8 billion. Outflows from funds are expected to be $11 billion in February, the heaviest since two weeks before the October bottom.

January chip sales up 22 percent from a year ago
Worldwide sales of semiconductors totaled $12.2 billion in January, down 2.4 percent from December, but up 22 percent from the same period a year ago, according to the Semiconductor Industry Association (SIA).

The chip industry tracker said it projects "double-digit" percentage sales growth in 2003, helped by a recovery in information technology spending, continued strength in the wireless market and the emergence of new sectors such as broadband networks.

SIA said IT spending is forecasted to increase 4 to 7 percent in 2003 and PC sales are expected to rise 10 to 14 percent.

Capital One CFO Willey resigns
Capital One Financial (NYSE:COF - News) came under pressure in pre-market trades after Chief Financial Officer David Willey resigned, effective immediately.

The move follows his receipt of a notice from the staff of the U.S. Securities and Exchange Commission indicating that it would recommend a civil action against Willey.

The action, which follows a formal order of investigation issued in July 2002, would allege that Willey traded in Capital One's stock while in possession of non-public information.

Separately, the consumer lending company reiterated earnings expectations for 2003, and said its chairman and acting chief financial officer intend to certify its 2002 financial statements