Premarket futures were suggesting a flat open for stocks on Wall Street Tuesday as traders began to process a stack of fresh earnings statements along with the announcement of new writedowns from big financial firm
Futures for the
were down a point at 1234, and were fractionally above fair value.
futures were down 4 points at 1810 and were 2 points ahead of fair value.
Last time out, the three major indices sold off steadily throughout the day as a series of mediocre earnings statements failed to counteract continuing fears about the health of the financial sector. The
Dow Jones Industrial Average
and the Nasdaq both lost at least 2%, and the S&P dropped 1.9%.
Following the end of that session, Merrill Lynch announced that it would be
$30.6 billion in collateralized-debt obligations for $6.7 billion. The company, which has in recent quarters been troubled by the tough-to-value assets, also said it will raise capital through a stock offering and take a $4.4 billion pretax charge-off in the third quarter.
Meanwhile, biotech company
, as did agricultural chemicals concern
As the new trading day approaches, investors will receive financial results from another series of companies, including Dow component and automaker
and steel producer
Among technology names, struggling telecommunications firm
reported a quarterly loss and announced the departure of chief executive Patricia Russo and chairman Serge Tchuruk.
Also offering bad news from the tech area, electronic goods manufacturer
said its profit was cut in half from a year ago and lowered its 2008 forecast.
On the other hand, energy company
announced a 28% year-over-year increase in profit thanks to rising oil prices.
Alpha Natural Resources
is also due to report this morning.
In food, fruit-and-vegetables purveyor
Fresh Del Monte Produce
reported a 34% decline in second-quarter profit thanks to weather-related damage to its products.
Also on the schedule are defense firm
, athletic underwear company
and disposal business
As to commodities, crude oil was recently adding 60 cents to $125.33 a barrel, and gold was climbing $1 to $938.80.
On a day that is rather light in terms of economic data, the Conference Board will nonetheless release its July consumer confidence report later this morning.
Long-dated U.S. bonds were ticking downward. The 10-year Treasury note was off 2/32 to yield 4.01%, and the 30-year was down 4/32, yielding 4.61%. The dollar was gaining on the euro, the yen and the pound.
Across the seas, markets were widely selling off. Frankfurt's DAX, London's FTSE, Japan's Nikkei and Hong Kong's Hang Seng were all marking losses.