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U.S. stock futures edge lower          Send a link to a friend

[October 03, 2007]  NEW YORK (AP) -- U.S. stock futures dipped on Wednesday as investors awaited a report on the health of the nation's service economy.

The Institute for Supply Management issues a reading Wednesday morning on business activity in the U.S. service sector, whose non-manufacturing industries range from banking to retail and travel and account for 80 percent of U.S. economic activity. The trade group is expected to report slower growth in September, following Monday's a weaker-than-expected reading on the manufacturing sector.

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Any weakness in service sector growth could support the case for further interest rate cuts from the Federal Reserve, which loosened its monetary policy last month by slashing key rates. Many investors expect the central bank to trim rates further this year, but there is debate over whether the reductions will come at the Fed meeting Oct. 30-31 or in December.

Dow Jones industrial average futures for December fell 9, or 0.1 percent, to 14,097. Standard & Poor's 500 futures lost 1.70, or 0.11 percent, to 1,552.90. Nasdaq 100 index futures dipped 2.25, or 0.11 percent, to 2,133.25.

Wall Street ended mixed on Tuesday, as investors adjusted their portfolios in the second trading session of the fourth quarter. The Dow closed with a moderate loss, while the Nasdaq composite index posted a gain.

Bond prices rose Wednesday, as yields slipped. The 10-year Treasury note fell to 4.52 percent from 4.53 percent late Tuesday.

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Overseas, Britain's FTSE 100 gained 0.57 percent, Germany's DAX index rose 0.16 percent, and France's CAC-40 rose 0.05 percent.

In corporate news, Germany's Deutsche Bank AG on Wednesday said it would book a $991.6 billion charge in the third quarter on losses related to the subprime crisis, but the bank expects gains on asset sales and tax credits to offset those losses. Deutsche projects a profit of $1.98 billion, better than a year ago.

The bank's forecast follows warnings on results from Citigroup Inc. and Switzerland's UBS AG on Monday. However, shares of banks have been resilient this week, as investors appear relieved to get bad news of the turbulent third quarter out of the way amid indications earnings may return to normal levels this quarter.

[Associated Press; by Lauren Villagran]

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

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