U.S. shares posied for downside open 03.06.2003 14:32
NEW YORK (AFX) -- Stocks were set to retreat at the open Tuesday, bogged
down by losses in IBM following news that Big Blue faces an investigation into
its accounting practices.
Late Monday, the Dow component told investors that the Securities and Exchange
Commission is looking for information relating to its revenue-recognition
practices in 2000 and 2001.
IBM fell about 3 percent in pre-open dealings.
In the meantime, Martha Stewart Living Omnimedia issued a statement informing
investors that Martha Stewart was the target of a criminal investigation and
that she faced an indictment in the near future.
In other news, FedEx announced late Monday that it would slice up to 14,000
jobs, or 12 percent of its workforce, in order to slash costs. The cuts are
expected to generate annual savings of $150 million to $190 million by 2005.
In the futures pits, the June S&P 500 contract declined 2.90 points, or 0.3
percent, while the Nasdaq 100 contract slumped 5.50 points, or 0.5 percent.
Government bonds edged higher for the first day in three, with the 10-year
Treasury note up 7/32 to yield 3.385 percent while the 30-year government bond
climbed 11/32 to yield 4.405 percent.
No economic news is due out Tuesday. All eyes will be on the granddaddy of
economic reports, the jobs data, which will be unfurled on Friday. Check
economic calendar and forecasts.
In the currency sector, the U.S. dollar rose against its major trading partners,
climbing 0.3 percent to 118.97 yen while the euro declined 0.4 percent to
$1.1719.
A Treasury Dept. spokesman said late Monday that both President Bush and
Treasury Secretary John Snow support a strong U.S. dollar. Market watchers have
been confused about the administration's dollar policy in the wake of remarks
from Snow two weeks ago that seemed to back a weaker currency.
The European Central Bank will meet on Thursday to decide on interest rates.
Market participants are clamoring for a rate cut -- especially in light of the
euro's sharp appreciation of late, which has rendered European exports more
expensive and thus threatens to further dent an already weak economy.
This story was supplied by CBSMarketWatch. For further information see
www.cbsmarketwatch.com.
NEW YORK (AFX) -- Stocks were set to retreat at the open Tuesday, bogged
down by losses in IBM following news that Big Blue faces an investigation into
its accounting practices.
Late Monday, the Dow component told investors that the Securities and Exchange
Commission is looking for information relating to its revenue-recognition
practices in 2000 and 2001.
IBM fell about 3 percent in pre-open dealings.
In the meantime, Martha Stewart Living Omnimedia issued a statement informing
investors that Martha Stewart was the target of a criminal investigation and
that she faced an indictment in the near future.
In other news, FedEx announced late Monday that it would slice up to 14,000
jobs, or 12 percent of its workforce, in order to slash costs. The cuts are
expected to generate annual savings of $150 million to $190 million by 2005.
In the futures pits, the June S&P 500 contract declined 2.90 points, or 0.3
percent, while the Nasdaq 100 contract slumped 5.50 points, or 0.5 percent.
Government bonds edged higher for the first day in three, with the 10-year
Treasury note up 7/32 to yield 3.385 percent while the 30-year government bond
climbed 11/32 to yield 4.405 percent.
No economic news is due out Tuesday. All eyes will be on the granddaddy of
economic reports, the jobs data, which will be unfurled on Friday. Check
economic calendar and forecasts.
In the currency sector, the U.S. dollar rose against its major trading partners,
climbing 0.3 percent to 118.97 yen while the euro declined 0.4 percent to
$1.1719.
A Treasury Dept. spokesman said late Monday that both President Bush and
Treasury Secretary John Snow support a strong U.S. dollar. Market watchers have
been confused about the administration's dollar policy in the wake of remarks
from Snow two weeks ago that seemed to back a weaker currency.
The European Central Bank will meet on Thursday to decide on interest rates.
Market participants are clamoring for a rate cut -- especially in light of the
euro's sharp appreciation of late, which has rendered European exports more
expensive and thus threatens to further dent an already weak economy.
This story was supplied by CBSMarketWatch. For further information see
www.cbsmarketwatch.com.
