Stocks Head for Higher Opening

[March 10, 2008]  NEW YORK (AP) -- Wall Street headed toward a higher opening Monday as investors smarting from a pummeling last week awaited data that will give more clues about consumer spending and inflation.

The market was expected to trade very nervously after worries about the economy and the continuing fallout from the credit crisis pounded stocks at week's end. Investors appeared to be waiting for direction early Monday rather than heading toward major moves.

The key economic data was coming later in the week -- the Commerce Department's retail sales report comes out Thursday, and the Labor Department issues the consumer price index on Friday.

Monday does bring first-quarter earnings from Hovnanian Enterprises Inc. Investors are hoping that the homebuilder sees some signs that will point to a pickup in home sales and in turn, an end to the housing slump.

Dow Jones industrial futures were up 50 at 11,941, Standard & Poor's 500 futures were up 6.10 at 1,298.60, and Nasdaq 100 futures are up 8 at 1,716.8.

Last week, the Dow ended down 3.04 percent, the S&P 500 index was off 2.80 percent, and the Nasdaq composite index closed with a loss of 2.60 percent.

The market may have gotten some support early Monday from a mild pullback in commodities prices, including gold and oil. A raging rally in commodities has sent the dollar skidding, and in turn raised concerns about rising inflation even as the economy slows.

Wall Street will also be watching for any clues from the Federal Reserve as to its plans for interest rates. The central bank meets next Tuesday and is widely expected to drop key rates at least half a percentage point.

However, there is great concern in the market that the Fed's moves might not be enough to keep the sagging economy out of recession. News from the Labor Department Friday that the economy lost 63,000 jobs last month helped set off another steep drop in stocks.

Most Asian markets sank Monday, some in response to Wall Street's losses last week, with Tokyo's market falling to a 2 1/2-year low. In Tokyo, the Nikkei 225 stock average tumbled 250.67 points, or 1.96 percent, to 12,532.13 points, its lowest since September 2005.

Hong Kong's market bucked the trend, with a recovery in afternoon trading driven by bargain-hunting and gains banking giant HSBC. The Hang Seng Index rose 203.72 points, or 0.9 percent, to 22,705.05.

Stocks were higher on European exchanges.

[Associated Press; By JOE BEL BRUNO]

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