U.S. stocks futures dip, Fed minutes eyed
Tue Nov 22, 2005 06:00 AM ET
LONDON, Nov 22 (Reuters) - U.S. stocks futures were pointing to a lower opening on Wall Street on Tuesday with oil prices continuing their rebound and investors awaiting Federal Reserve minutes later.
As the reporting season comes to a close, Albertsons Inc (ABS.N: Quote, Profile, Research) will be a standout with third-quarter earnings per share seen around 0.27 cents from 0.32 a year ago.
Microsoft (MSFT.O: Quote, Profile, Research) shares will also be in focus after the launch of its new Xbox 360 video console in North America.
By 1030 GMT, U.S. stock futures were showing losses of between 0.16 and 0.33 percent for the three main indexes (SPZ5: Quote, Profile, Research) (DJZ5: Quote, Profile, Research) (NDZ5: Quote, Profile, Research) .
"The results for this third quarter have in essence been good. Fourth quarter results should maintain the momentum and growth is not expected to ease back in the U.S. until the summer of next year," said David Buik at spreadbetters Cantor Index.
"This is still considered a bear rally but there is little in the way of evidence to suggest that equities should be kicked into touch before Christmas. There may be a bit of profit taking early on with oil prices heading north with a cold snap in prospect."
U.S. light crude futures (CLc1: Quote, Profile, Research) were trading 0.9 percent higher at $58.24 a barrel.
Minutes from the Federal Open Market Committee's Nov. 1 meeting are due at 1900 GMT.
A Reuters survey of around 100 economists suggested that the Fed funds rate would peak at 4.75 percent in mid-2006, by which time many expected a slowdown in the U.S. housing market to dampen economic growth.
U.S. stocks rallied on Monday, driving the Dow to a gain for the year and its highest close since March as Boeing Co. (BA.N: Quote, Profile, Research) shares hit a 4-1/2-year high on news of multibillion-dollar aircraft orders.
Monday's gains extended a month-long rally, as investors hope the stock indexes will close the year out with gains.
The Dow Jones industrial average rose 53.95 points, or 0.50 percent, to end at 10,820.28. The Standard & Poor's 500 Index was up 6.58 points, or 0.53 percent, to 1,254.85.
The technology-laced Nasdaq Composite Index rose for the fourth straight session, adding 14.60 points, or 0.66 percent, to finish at 2,241.67.
For the year, the Dow is up about 0.4 percent, the S&P 500 is up 3.5 percent, and the Nasdaq is up about 3 percent.
Volume is expected to be light in a holiday-shortened week. U.S. stock markets will be closed on Thursday for Thanksgiving Day and will close early on Friday.