Stock futures head to higher open

[July 23, 2008]  NEW YORK (AP) -- Wall Street looked to extend its gains Wednesday as oil retreated again and investors turned a bit more hopeful about the economy.

Oil prices fell further after dropping more than $3 a barrel in the previous session as Hurricane Dolly looked likely to spare key oil installations in the Gulf of Mexico. Investors were also awaiting supply data released by the government during the session that could show demand is weakening.

A barrel of light sweet crude dropped $2.08 to $126.34 in premarket trading on the New York Mercantile Exchange. Crude is now down more than $20 after just weeks ago hitting a record above $147 a barrel; that surge had raised concerns that rising inflation would cripple consumer spending and in turn, the economy.

Oil's tumble distracted investors from some disappointing earnings. Late Tuesday, Washington Mutual Corp. followed Wachovia Corp. in posting second-quarter results that fell short of expectations.

Yahoo Inc. also reported that second-quarter profit slipped and missed projections. However, its results weren't as weak as many investors feared after Internet search and advertising leader Google Inc. disappointed Wall Street last week.

Investors are awaiting quarterly reports from a number of blue chip names during the day, including McDonald's Corp., Ford Motor Co. and AT&T Inc.

Dow Jones industrial average futures rose 69, or 0.48 percent, to 11,623. On Tuesday, the Dow rose 135 points as the price of oil fell.

Standard & Poor's 500 index futures rose 6.50, or 0.52 percent, to 1,280.70. Nasdaq 100 index futures added 10.50, or 0.57 percent, to 1,834.50.

Bond prices were lower Wednesday as investors moved more money into equities. The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 4.15 percent from 4.10 percent from late Tuesday.

The dollar was higher against other major currencies, while gold prices fell.

Costco Wholesale Corp. said Wednesday fiscal fourth-quarter and full-year profit will miss Wall Street expectations, as the warehouse club operator expects higher energy costs to crimp its bottom line. It will release results on Oct. 8.

Household appliance maker Whirlpool its profit fell 27 percent in the second quarter because of higher material and oil-related costs, and lower U.S. demand. The results still surpassed projections.

Snacks and drinks company PepsiCo Inc. reported second-quarter profit rose 9 percent on strong growth in its international business. The company beat expectations and also reaffirmed full-year forecasts.

In economic news, the Federal Reserve will also release its beige book, its analysis of regional economies, at 2 p.m. EDT.

Japan's Nikkei stock average rose 0.97 percent. In morning trading, Britain's FTSE 100 added 1.41 percent, Germany's DAX index rose 1.16 percent, and France's CAC-40 rose 1.64 percent.

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On the Net:

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

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

[Associated Press; By JOE BEL BRUNO]

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