Wall Street poised for lower opening Tuesday

[February 17, 2009]  NEW YORK (AP) -- Investors uneasy about the government's ability to quickly turn the economy around were poised to keep selling Tuesday when stock trading begins for the week.

President Barack Obama is set to sign the $787 billion stimulus package into law Tuesday. He is also scheduled to outline a plan to help stem mortgage foreclosures Wednesday.

However, while Wall Street eagerly awaited the government's plans to help the economy, now that those programs have become reality, investors are aware that it will take some time for them to work.

Concerns about the auto industry weighed on the market. General Motors Corp. and Chrysler LLC are scheduled to submit turnaround plans to the government Tuesday showing how they can repay billions of dollars in loans and return to profitability. GM has already received $9.4 billion from the government, and would receive another $4 billion if the Treasury Department signs off on its viability plan. Chrysler has borrowed $4 billion. It is seeking another $3 billion.

Economists are expecting a new reading Tuesday to show continued weakness in manufacturing in New York. The New York Federal Reserve Bank's Empire State manufacturing index is forecast to come in at negative 22.2, according to economists polled by Thomson Reuters. The report is the earliest of several monthly regional snapshots that investors look to for insights on economic activity.

Investors also are awaiting Wal-Mart Stores Inc.'s first-quarter earnings report. The world's largest retailer has performed relatively well during the recession as it attracts customers looking for discounts. Wal-Mart is set to release quarterly results before the market opens.

Ahead of the opening bell, Dow Jones industrial average futures fell 116, or 1.49 percent, to 7,663. Standard & Poor's 500 index futures declined 17.4, or 2.12 percent, to 802.70, while Nasdaq 100 index futures tumbled 31.75, or 2.58 percent, to 1,197.50. The markets were closed Monday for Presidents Day.

Bond prices were mixed. The yield on the benchmark 10-year Treasury note, which moves opposite its price, fell to 2.78 percent from 2.90 percent late Friday. The yield on the three-month T-bill, considered one of the safest investments, rose to 0.31 percent from 0.28 percent late Friday.

The dollar rose against other major currencies and gold prices also rose.

Oil fell 41 cents to $37.10 per barrel in premarket electronic trading on the New York Mercantile Exchange.

Overseas, Japan's Nikkei stock average fell 1.4 percent. In afternoon trading, Britain's FTSE 100 fell 1.3 percent, Germany's DAX index declined 1.7 percent, and France's CAC-40 was fell 1.6 percent.

___

On the Net:

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

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

[Associated Press; By STEPHEN BERNARD]

Copyright 2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.