Monday: Morning Trade Looks Quiet Ahead of CPI

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By Justin Lahart
Staff Reporter

After getting battered on Friday, traders expect a bit of a respite this morning.

"The oversold condition is allowing some relief here, so we'll have a little firming here," says one trader.

The market should be relatively quiet today, heating up tomorrow as the

Consumer Price Index

, and more earnings reports, come out.

As things stand now, the

S&P 500

futures, up about 1.50, are signaling a weak open. To reach fair value, they need to be up 3.95. The 30-year Treasury bond is down 1/32 at 93 11/32, driving the yield to 7.17%.

USA Waste

(UW)

announced that it will acquire

United Waste

(UWST)

in a stock deal worth about $1.7 billion.

The Wall Street Journal

reports that

Continental Airlines

(CAIB)

is in talks with

Boeing

(BE) - Get Report

. Continental could become the third airline to buy airplanes exclusively from Boeing.

General Motors

(GM) - Get Report

reported first-quarter earnings of $2.30 a share, well above

First Call

expectations of $2.09.

Coca-Cola

(KO) - Get Report

came in with first-quarter earnings of 40 cents a share, two cents above First Call estimates.

Goodyear Tire

(GT) - Get Report

announced first-quarter earnings of $1.09, two cents above First Call estimates.

Travelers

(TRV) - Get Report

reported first-quarter earnings of $1.00 a share, nine cents better than First Call estimates.

Novellus

(NVLS)

reported first-quarter earnings of 91 cents a share, two cents better than First Call estimates. The company said that it planned to appeal patent infringement verdict that

Applied Materials

(AMAT) - Get Report

won against it. Novellus warned that the damages that could be assessed against it could have a "material adverse impact on the company's financial condition."

Bank of New York

(

(BK) - Get Report

BK posted first-quarter earnings of 65 cents a share, two cents above First Call expectations.

Tokyo stocks dipped, prompted by Wall Street's declines on Friday. Despite more gains in the dollar, international blue-chips fell. Brokerages also fell on reports in the

Tokyo Shimbun

that the

Nomura

scandal has spread. The paper said that

Nikko

,

Daiwa

and

Yamaichi

were searched recently. Banks, led by

Nippon Credit Bank

. The

Nikkei

fell 154.41 to close at 17,692.47.

With their fortunes tied so closely to the U.S. market, Hong Kong stocks got battered badly. Leading the plummet were interest rate-sensitive property stocks. Those issues have already been under pressure -- investors have become concerned that the government may step in to curtail speculation in the territory's frothy real-estate market. The

Hang Seng

fell 220.63 to close at 12,295.97.

Frankfurt stocks also took their cues from Wall Street, trading down. Despite a stronger dollar, even export-oriented stocks posted losses. The

Dax

closed at 3279.89, down 60.15

In London, stocks fell sharply at the open, with the

FTSE

touching a low of 4,232.9. Since then, the market's taken back some of those losses. The

FTSE

is down 23.4 at 4247.30.