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Stocks head toward lower opening         Send a link to a friend

[August 28, 2007]  NEW YORK (AP) -- Stocks headed toward a lower opening Tuesday as Wall Street cautiously awaited minutes from the Federal Reserve's Aug. 7 meeting, which could provide insight into whether it may cut rates.

At the central bank's last meeting, policymakers held rates steady and said that although tight credit and the housing market may drag on the economy, inflation remains its predominant concern. Since then, the market has tumbled further from its record levels of mid-July, and the Fed, raising concerns about the market turmoil's effect on the economy, did respond with a drop in its discount rate.

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Although the Fed has indicated since the meeting it will take the steps needed to contain damage to the economy from market turbulence, investors nonetheless may shudder if the Fed's minutes suggest it is unwilling to waver in its stance against inflatio.

Investors will also be reading the Standard & Poor's/Case-Shiller home price index and the Conference Board's reading on August consumer sentiment.

In premarket trading, Dow Jones industrials futures expiring in September fell 32, or 0.24 percent, to 13,320, while Standard & Poor's 500 index futures fell 3.00, or 0.20 percent, to 1,466.80. Nasdaq 100 index futures fell 5.50, or 0.28 percent, to 1,945.00.

On Monday, the stock market retreated from last week's strong gains after a report said sales of existing homes slipped in July for a fifth straight month to their slowest pace in nearly five years.

Bonds were poised to open slightly lower Tuesday, with the yield on the benchmark 10-year Treasury note edging up to 4.58 percent from 4.57 percent late Monday. The dollar was mostly lower against other major currencies, while gold prices rose.

Light, sweet crude rose 13 cents to $72.10 a barrel in premarket electronic trading on the New York Stock Exchange.

In Asian trading, Japan's Nikkei stock average fell 0.09 percent, while China's Shanghai Composite Index gained 0.87 percent to another record.

In afternoon European trading, Britain's FTSE 100 fell 0.54 percent, Germany's DAX index fell 0.21 percent, and France's CAC-40 fell 0.93 percent.

___

On the Net:

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

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

[Associated Press; by Madlen Read]

Copyright 2007 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

 

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