US stocks look to open mixed as oil prices rebound

[July 09, 2008]  NEW YORK (AP) -- Stocks headed for a narrowly mixed open Wednesday as rebounding oil prices drained away the momentum from Wall Street's big Tuesday rally.

A more than $9 drop in oil over two days had pulled the stock market out of its malaise, but light, sweet crude rose $1.84 to $137.88 a barrel in early electronic trading on the New York Mercantile Exchange. The price rise occurred after missile testing in Iran that rekindled worries that political unrest in the Middle East could disrupt supplies.

Wall Street appeared somewhat heartened by better-than-expected earnings from Alcoa Inc. After the market closed Tuesday, Alcoa Inc. began the second-quarter earnings season by reporting a profit decline of 24 percent -- but the results were stronger than the market anticipated. Alcoa shares rose 3.5 percent in after-hours trading.

Ahead of the market's open, Dow Jones industrial average futures fell 5, or 0.04 percent, to 11,370. Standard & Poor's 500 index futures fell 2.20, or 0.17 percent, to 1,271.50, while Nasdaq 100 index futures rose 1.80, or 0.10 percent, to 1,870.20.

On Tuesday, the Dow gained more than 150 points, with Wall Street also encouraged by the possibility of a recovery in the ailing financial system in speeches by Federal Reserve Chairman Ben Bernanke, Treasury Secretary Henry Paulson and JPMorgan Chase & Co. Chief Executive Jamie Dimon.

Bond prices slipped Wednesday. The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 3.91 percent from 3.89 percent late Tuesday.

The dollar fell against other major currencies. Gold prices also slid.

Wednesday's calendar of economic data is light. The one notable report was the Mortgage Bankers Association's weekly application survey -- mortgage application volume rose 7.5 percent during the week ending July 4, the trade group said.

Stock markets overseas rose. Japan's Nikkei stock average edged up 0.15 percent. In morning trading, Britain's FTSE 100 rose 1.48 percent, Germany's DAX index rose 1.17 percent and France's CAC-40 rose 1.20 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 MADLEN READ]

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