Wall Street poised for lower open

[May 11, 2009]  NEW YORK (AP) -- Wall Street was poised for a lower opening Monday as investors appeared ready to give back some of last week's big gains. Stock futures were lower.

Investors were ready to put a two-month rally on hold after buying into the market last week. Markets had rallied on a better-than-expected report on unemployment and the disclosure of the government's bank stress test results.

Dow Jones industrial average futures declined 76, or 0.89 percent, to 8,440. Standard & Poor's 500 index futures fell 10.00, or 1.08 percent, to 914.70, while Nasdaq 100 index futures tumbled 21.75, or 1.57 percent, to 1,367.75.

This week, the focus will shift from banks to consumer spending. First-quarter earnings figures will be coming from Wal-Mart Stores Inc., Macy's Inc. and other retailers and the Commerce Department reports retail sales for April.

Macy's reports first-quarter results Wednesday, while Wal-Mart will announce its quarterly results on Thursday.

Consumer spending accounts for more than two-third of economic activity. Signs of improved spending upbeat outlooks from key retailers could give investors another reason to jump into the market.

Last week, investors welcomed the government's bank stress test results that showed exactly which of the nation's largest banks would need additional cash to cover any further weakening in the economy. Removing that uncertainty about which banks might need more capital helped assuage many fears in the sector.

The Dow closed last week up 362.24, or 4.4 percent, at 8,574.65. The S&P 500 index rose 51.71, or 5.9 percent, to 929.23. The Nasdaq gained 19.80, or 1.2 percent, to 1,739.00.

Since the market began to rally in early March, the S&P 500 has skyrocketed 37.4 percent, though it is still off 40.6 percent from its high in October 2007.

Meanwhile, bond prices were mixed. The yield on the benchmark 10-year Treasury note, which moves opposite its price, fell to 3.25 percent from 3.29 percent late Friday. The yield on the three-month T-bill, considered one of the safest investments, rose to 0.18 percent from 0.17 percent late Friday.

The dollar mostly rose against other major currencies, while gold prices declined.

Overseas, Japan's Nikkei stock average rose 0.2 percent. In afternoon trading, Britain's FTSE 100 declined 1.1 percent, Germany's DAX index fell 1.1 percent, and France's CAC-40 declined 1.2 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 STEPHEN BERNARD]

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