|
Investors were skittish in the previous session amid speculation that Countrywide Financial Corp. would file for bankruptcy protection, and after AT&T Inc.'s chief executive said the U.S. economic slowdown was hurting the company's consumer business. That sent the Dow Jones industrial average plunging 238 points.
Stocks that have plunged so far this year, carrying the Dow and Standard & Poor's 500 index each down more than 5 percent since Jan. 1, and the Nasdaq composite index down nearly 8 percent, were looking more attractive and drawing buyers early Wednesday. Still, the market remained very nervous with fourth-quarter earnings season about to begin and many questions lingering about the fallout from the mortgage and credit crisis.
There was little in the way of economic news Wednesday as investors awaited a speech by Federal Reserve Chairman Ben Bernanke on Thursday that could give clues about the central bank's stance on the weakening economy.
Dow futures rose 30 points, or 0.28 percent, to 12,681.00. Broader indexes also indicated a higher open, with the S&P 500 index futures up 5.80, or 0.42 percent, at 1,402.80; and Nasdaq futures up 7.00, or 0.36 percent, at 1,935.50.
There could be some pressure on stocks as oil prices rose amid expectations a U.S. government report will show crude oil stockpiles fell last week. Light, sweet crude for February delivery rose 62 cents to $96.95 a barrel in electronic trading on the New York Mercantile Exchange.
Bond prices are expected to fall during the session as investors move back into stocks. The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 3.79 percent from 3.84 percent late Tuesday.
In corporate news, Wednesday's big earnings report will come after the close of trade when Alcoa Inc. is expected to report a 55 percent drop in earnings per share, excluding restructuring charges.
[to top of second column]
 |
 Troubled discount brokerage E-Trade Financial Corp., which Tuesday saw shares dip to an all-time low on growing mortgage segment losses, said it sold about $3 billion of mortgage-backed securities and municipal bonds in addition to the November sale of its $3 billion asset-backed portfolio.
Chemical maker DuPont Co. raised its fiscal 2007 profit outlook, citing better-than-expected fourth-quarter sales. The company, which makes a wide range of products including automotive coatings and genetically modified seeds, also lifted its forecast for 2008.
Countrywide on Wednesday said it funded $23.4 billion of mortgage loans in December, up 1 percent from November. The lender, which on Tuesday declared it had no intention to file for bankruptcy, also said that lending activity for the quarter topped its forecast.
James Cayne stepped down as chief executive of Bear Stearns Cos. He was replaced by Bear Stearns President Alan Schwartz, a 57-year-old investment banker respected for his deal-making savvy.
Overseas, Japan's Nikkei stock average closed up 0.49 percent. Britain's FTSE 100 fell 0.96 percent, Germany's DAX index dropped 0.45 percent, and France's CAC-40 was down 0.49 percent.
___
On the Net:
New York Stock Exchange: http://www.nyse.com/
Nasdaq Stock Market: http://www.nasdaq.com/
[Associated Press; By JOE BEL BRUNO]
Copyright 2007 The Associated Press. All rights reserved. This
material may not be published, broadcast, rewritten or
redistributed.
 |
