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DOW

Stock rebound may have legs

Futures point to higher open as bank merger hopes, lower oil outweigh more mortgage losses and forecasts of weak housing sales.

U.S. stocks may continue their rebound Wednesday, although investors will have to weigh new details about the mortgage meltdown and related housing slump.

At 6:42 a.m. ET, Nasdaq and S&P futures were higher, suggesting gains for stocks at the open.

Stocks advanced Tuesday, recovering from a sell-off that sent stocks into a correction earlier in the week. Markets got a boost after Abu Dhabi's investment arm injected $7.5 billion into troubled bank Citigroup (Charts, Fortune 500).

Hopes that there could be more bank deals were helping futures Wednesday.

According to a story in the Wall Street Journal, a prominent investment banker had proposed to Citigroup earlier about a month ago that it consider a merger with No. 2 bank Bank of America (Charts, Fortune 500).

The paper reported the idea was rejected by Citi and that Bank of America denied to the paper authorizing anyone to approach Citi about a possible deal.

But Citigroup, which rose 1.7 percent Tuesday on news of the Abu Dhabi investment, saw shares rise another 3 percent in early Frankfurt trading Wednesday. Bank of America shares edged up 0.8 percent.

Hopes for banking mergers will be balanced by more hard news of credit woes in the sector. Wells Fargo (Charts, Fortune 500) said late Tuesday it would take a $1.4 billion hit in the fourth quarter for loan losses related to home equity loans.

Mortgage finance firm Freddie Mac (Charts, Fortune 500), which last week announced a $2 billion loss that cut its capital reserves close to the minimum required by regulators, slashed its dividend in half and also said it would sell $6 billion of stock to bolster its finances in anticipation of additional losses. While both moves were signaled last week, the size of the stock sale was larger than some estimates of between $2 billion and $5 billion and shares of Freddie lost another 2 percent in after-hours trading.

A batch of economic reports are due Wednesday, include durable orders, existing home sales and the Fed's Beige Book of economic conditions.

Existing home sales already have fallen to the lowest pace on record since the National Association of Realtors started tracking both single family and multi-family home sales in 1999. Economists surveyed by Briefing.com have forecast an eighth straight month of declines in October to an annual rate of 5.0 million from 5.04 million in September.

Oil prices, which plunged more than $3 Tuesday on growing expectations for OPEC to boost production, slipped further in early trading ahead of the weekly report on U.S. fuel inventories. Light, sweet crude for January delivery was off 9 cents to $94.33 a barrel in electronic trading early Wednesday.

There was more indication that holiday sales were off to a strong start, despite a report earlier Tuesday that showed a sharp drop in consumer confidence.

Online retailers saw record one-day sales of $733 million on Cyber Monday, a 21 percent jump from the Internet purchases on the first day back at work after the Thanksgiving weekend a year ago.

And one of the leading online retailers, Amazon.com (Charts, Fortune 500) won a legal victory late Tuesday afternoon when it was revealed that Federal prosecutors have withdrawn a subpoena seeking the identities of thousands of people who bought used books on the Web site, after a Federal judge ruled buyers had a first amendment expectation of privacy about their reading habits.

In other corporate news, Google (Charts, Fortune 500) announced Tuesday it will spend hundreds of millions of dollars developing new solar and wind technologies while investing in green tech startups.

In global trade, most markets in Asia finished the session lower, while European stocks advanced in morning trading.

US Futures & Markets Indicators

Dec 2007	Change	Level	Last Update?
S&P 500	+9.90	1436.30	11/28 7:56am
Fair Value		NA	11/15 4:14am
Difference*		N/A
NASDAQ	+22.50	2055.00	11/28 7:56am
Fair Value		NA	11/15 4:14am
Difference*		N/A
Dow Jones	+68.00	13023.00	11/28 7:55am

 

Futures up slightly as oil steadies

Stock index futures were up slightly on Wednesday as crude oil stayed below the $95 mark, potentially taking the pressure off consumers during the holiday shopping season.

Retail stocks could get a lift after data showed U.S. shoppers spent a record $733 million on "Cyber Monday," up 21 percent from the same day a year ago, according to market research firm comScore.

The number of online buyers rose 38 percent, but the average amount spent per buyer slipped 12 percent due to big discounts offered by retailers.

Stocks got a boost on Tuesday from a $3 drop in oil prices. Crude was last down 7 cents at $94.35 a barrel in electronic trading.

"You're getting a back-up in oil prices and energy's been one of the few positive sectors, but that would be good for the rest of the market," said Rick Meckler, president of investment firm LibertyView Capital Management in Jersey City, New Jersey,

Stocks' rebound was also powered by a major investment in Citigroup (C.N: Quote, Profile, Research), which helped revive financial shares, but after-hours news in the sector could put a damper on the recovery.

Shares of Wells Fargo & Co (WFC.N: Quote, Profile, Research) dropped 1.6 percent to $29.35 after the bell on Tuesday after the fifth-largest U.S. bank announced it would take a $1.4 billion charge in the fourth quarter for mortgage losses.

Further dragging on financials, Freddie Mac (FRE.N: Quote, Profile, Research), the second-biggest provider of money for U.S. home loans, said late on Tuesday it cut its dividend by 50 percent and said it will sell $6 billion of preferred stock to buoy capital levels.

Freddie shares fell 2.3 percent to $25.15 after the closing bell.

S&P 500 futures were up 4.6 points, above fair value, a mathematical formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract.

Dow Jones industrial average futures rose 40 points, and Nasdaq 100 futures added 10.25 points.

On Tuesday, the Dow Jones industrial average (.DJI: Quote, Profile, Research) rose 215.00 points, or 1.69 percent, to 12,958.44. The Standard & Poor's 500 Index (.SPX: Quote, Profile, Research) gained 21.01 points, or 1.49 percent, to 1,428.23. The Nasdaq Composite Index (.IXIC: Quote, Profile, Research) added 39.81 points, or 1.57 percent, to 2,580.80.

Economic data on tap for Wednesday includes October durable goods orders, set for release at 8:30 a.m. and existing home sales at 10 a.m.

 

This may be the reason STI closed below water today.

Better days are coming, but not so soon...

US Futures & Markets Indicators

Dec 2007	Change	Level	Last Update?
S&P 500	-3.10	1423.30	11/28 4:06am
Fair Value		NA	11/15 4:14am
Difference*		N/A
NASDAQ	-4.50	2028.00	11/28 3:34am
Fair Value		NA	11/15 4:14am
Difference*		N/A
Dow Jones	-25.00	12930.00	11/28 4:06am

 

Looks like piercing pattern to me. Better days ahead?

 

Citigroup, Subprime Borrower

Time will tell if Abu Dhabi's investment in Citigroup proves as lucrative as the last time a large Middle East-based investor plunked down a bundle to rescue the flagging company, back in 1992, when Saudi Prince Alaweed bin Talal laid down a ton of coin to become the largest stakeholder in the firm .

Either way, for the next few years, the Abu Dhabi Investment Authority is taking a stake at the kind of rates that the most credit-strapped subprime borrower would love to see right around now ? 11%. There was some fanfare about two weeks ago when Citigroup sold debt at around 6.125%, but the folks in Abu Dhabi get an even better interest rate for two years on the equity stake, at which time the convertible securities begin to convert to shares of stock.

"Citibank has essentially become a sub-prime borrower ? only without the advantages of teaser rates!" writes Barry Ritholtz of Ritholtz Capital Partners, on his blog.

Writing in Minyanville.com this morning, Mark Bloudek says the $7.5 billion infusion really comes to around $5.7 billion, as Citi will have to pay about $1.8 billion in interest payments over the next two years (although the bank gets the advantage of having $7.5 billion in capital now). Because the shares have a mandatory conversion, though, this is essentially an equity sale, Mr. Bloudek says.

The shares are convertible between $31.83 and $37.24 a share starting in 2010, so that requires a meager 3% or so gain on the shares for Abu Dhabi Investment Authority to make money on the investment by then (of course, they'll earn the 11% interest before that). The interest paid implicitly values Citi's shares in the mid-20s, Mr. Bloudek says.

With this infusion, Citi will be able to boost its Tier 1 Capital Ratio (a measure of how much cash the bank has on hand, basically) to its goal of 7.5%, amid concerns that the company would have to cut its dividend or sell assets. Whether this is enough is another matter, however, as Ian Welsh of the Agonist blog writes, saying "this won't be the last infusion they need."

And therein lies the risk for Abu Dhabi, which, according to Doug McIntyre of 24/7 Wall Street , is "taking a huge risk that most of the write-offs at Citi are behind it and that it will not be forced to raise even more capital within the next few months." (To wit: Bank of America was smelling like a rose when it took a $2 billion stake in Countrywide, getting shares convertible at $18. Countrywide now trades at $8.75.) Morgan Stanley analysts remained cautious in commentary this morning, reserving excitement because of "deteriorating fundamentals, high probability of further dilutive capital raising, and low probability of material asset sales in the medium term."

In early November, Meredith Whitney of CIBC World Markets downgraded shares, saying the firm needed to raise capital, cut its dividend, and sell some assets. Consider one of those three accomplished, she says today in a note. "Now that it has raised $7.5 billion in equity, we wait for C to sell assets and cut its dividend," she writes.

 

JPMorgan estimates US$260b in CDO market losses. JPMorgan estimates that overall losses from collateralisd debt obligations (CDOs) tied to risky sub-prime mortgages may climb to US$260 billion, according to Chris Flanagan, head of US assetbacked securities. JPMorgan estimates that structuring banks are exposed to US$216 billion of supersenior risk, while guarantors have exposure to about US$90 billion. 'In upcoming months, the focus will be the extent of mortgage-related losses and who owns these losses,' the report said. Bank CDO write-downs may climb to US$77 billion, while write-downs for guarantors may be US$30 billion, according to JPMorgan.

 

No x'mas present from Fed. This may causes not-so-merry x'mas globally.

Fed officials lean toward no 'holiday' rate cut. Two Federal Reserve Bank officials hinted strongly on Tuesday that they would not support an interest rate cut in December, contending that the Fed has provided enough insurance against financial turmoil and would risk opening the door to higher inflation. The comments from Chicago Fed President Charles Evans and Philadelphia Fed President Charles Plosser put the central bank at odds with financial markets that are anticipating a series of rate cuts over the next few months. Many Fed watchers see further easing as a necessity given the almost daily widening of turmoil in global credit markets - conditions that have worsened even since the most recent Fed policy meeting in late October.

 

Citigroup-Abu Dhabi deal: A sign of the times

Sovereign wealth funds are looking to park more of their $2 trillion with U.S. companies.

Citigroup's newfound $7.5 billion cash infusion from Abu Dhabi's state investment fund may not cure all that ails the embattled bank, but it heralds the growing influence of sovereign wealth funds.

With similar government-owned funds swimming in cash, more iconic U.S. firms like Citigroup may find themselves owned, at least in part, by foreign governments.

Sovereign wealth funds, which act as a country's investment arm, have long been investing money gained through exports or from the sale of commodities such as oil.

But because of their rapidly expanding size, these funds have become harder to ignore.

Located both in the oil-rich Middle East, as well as other nations such as Russia and Singapore, the funds' combined assets under management are expected in the next three years to quadruple in size to $7.9 trillion from $1.9 trillion, according to Merrill Lynch.

While government debt like U.S. Treasuries have long been their investment vehicle of choice, the funds' appetites have grown more complex as they have searched for greater returns, said Jay Bryson, global economist at Wachovia Corp.

"There are only so many Treasury securities or government bonds out there they can buy, so they are looking to diversify," said Bryson.

This year alone, sovereign wealth funds have gobbled up pieces of a number of U.S. firms. In May, China Investment Corp. purchased a nearly 10 percent stake of the private equity firm Blackstone Group (Charts).

In August, Istithmar, a financing arm of the United Arab Emirates, agreed to buy the department store operator Barneys for $942 million. And earlier this month, Mubadala Development Co., a separate investment arm of the government of Abu Dhabi, acquired a $622 million stake in the chipmaker AMD (Charts, Fortune 500).

Economists argue that investments by sovereign funds are important to the U.S. economy, providing capital to firms such as Citigroup (Charts, Fortune 500) and supporting the dollar. At the same time, the funds have have faced plenty of criticism.

World leaders at the October G7 meeting, worried that the funds may try to wield their investments as a diplomatic tool, called for greater transparency about investments.

Lawmakers in Washington have been equally cautious, despite a recent push by both the White House and some members of Congress to court foreign investors after last year's widely-publicized failure of Dubai Ports World to manage six U.S. ports.

The Citigroup-Abu Dhabi deal got a different reception on Tuesday. In a televised interview, Sen. Charles Schumer (D-N.Y.) said the investment would make the Wall Street firm "stronger."

"We just want to make sure other countries are as open to us investment as we are to them," Schumer said.

Going forward, sovereign wealth funds will most likely try to avoid scrutiny altogether by acquiring small stakes and forgoing management control, similar to the Citigroup-Abu Dhabi deal, said Edwin Truman, senior fellow at the Peterson Institute for International Economics.

"Sovereign wealth funds have learned from their experiences," said Truman.

 

US STOCKS-Banks, oil spark rebound, but Wells Fargo off late

U.S. stocks rose on Tuesday after Abu Dhabi's $7.5 billion purchase of a stake in Citigroup Inc (C.N: Quote, Profile, Research) spurred a rebound in financial stocks and a drop in oil prices boosted shares of big manufacturers.

The $7.5 billion investment gives the No. 1 U.S. bank fresh capital as it wrestles with fallout from the subprime mortgage crisis and showed that investors were starting to see value among beaten-down bank stocks.

A more-than-$3 slide in oil prices also underpinned the market, helping shares of retailers and big manufacturers such as General Electric (GE.N: Quote, Profile, Research). The diversified manufacturer was the top contributor to the S&P 500's rise.

The market is buoyed by news of "the cash infusion into Citigroup," said David Sowerby, market strategist for Loomis Sayles in Detroit.

Besides Citigroup's stock, other rising shares in the financial services sector included JPMorgan Chase & Co (JPM.N: Quote, Profile, Research) and Bank of America Corp (BAC.N: Quote, Profile, Research). The S&P financial stocks index (.GSPF: Quote, Profile, Research) rose 2.6 percent.

"Secondly, I believe that institutional investors are seeing more opportunities in the market to be more aggressive buyers, particularly when you look at extremely low yields in the Treasury market," Sowerby added.

The Dow Jones industrial average (.DJI: Quote, Profile, Research) was up 215.00 points, or 1.69 percent, at 12,958.44. The Standard & Poor's 500 Index (.SPX: Quote, Profile, Research) was up 21.01 points, or 1.49 percent, at 1,428.23. The Nasdaq Composite Index (.IXIC: Quote, Profile, Research) was up 39.81 points, or 1.57 percent, at 2,580.80.

CITIGROUP JUMPS

Abu Dhabi Investment Authority, considered the world's largest sovereign wealth fund, is buying a 4.9 percent stake in Citigroup, whose stock finished up 1.5 percent at $30.26 on the New York Stock Exchange. For details, see [ID:nN27486222].

Shares of JPMorgan, the No. 3 U.S. bank, ended up 4.7 percent at $42.35 and shares of Bank of America, the No. 2 U.S. bank, climbed 2.5 percent to $42.94, both on the NYSE.

After the closing bell, shares of Wells Fargo & Co (WFC.N: Quote, Profile, Research) dropped more than 2 percent to $29.19 after the fifth-largest U.S. bank said it would take a $1.4 billion charge in the fourth-quarter due to mortgage losses. [ID:nWEN2714]

Wells Fargo shares had risen 1.2 percent to close on the NYSE at $29.83.

Shares of Freddie Mac (FRE.N: Quote, Profile, Research) also fell in after-hours trading after the No. 2 U.S. home financing provider said it would slash its divident by 50 percent and would raise $6 billion through the sale of preferred stock. [ID:nWNAS3253]

OIL BOOST

During the regular session, GE shares finished up 2 percent up at $37.45 on the NYSE. The drop in oil prices helped calm worries about the impact of higher energy costs on businesses, as well as on consumers.

Shares of Wal-Mart Stores Inc (WMT.N: Quote, Profile, Research) finished up 1.8 percent at $45.83, and were among the top contributors to the Dow's advance. Shares of Staples (SPLS.O: Quote, Profile, Research) jumped 10.6 percent to $21.85 on the Nasdaq after the office supply retailer reported quarterly profit that topped analysts' estimates. [ID:nN27461929].

The S&P retail index (.RLX: Quote, Profile, Research) climbed 1.8 percent.

Altria Group Inc (MO.N: Quote, Profile, Research), parent of the Philip Morris tobacco companies, was another standout on the Dow, rising 2.7 percent to $73.35. Companies that make consumer staples, such as cigarettes, fast food and soft drinks, are seen as better investments in the face of a slowing economy.

Technology shares also rebounded, led by sector bellwethers, including iPod and iPhone maker Apple Inc (AAPL.O: Quote, Profile, Research), whose stock gained 1.3 percent to $174.81, and chip maker Intel Corp (INTC.O: Quote, Profile, Research), whose stock gained 3.0 percent to $25.11 on the Nasdaq.

CONSUMER WORRY

The market advanced despite economic reports and comments from key officials pointing to uncertainty about the outlook, including a decline in consumer confidence to a two-year low.

The Conference Board said its index fell to its lowest in two years on concerns about rising gas prices and financial market volatility.

In addition, U.S. existing single-family home prices, as measured by the S&P/Case-Shiller index on Tuesday, suffered the largest quarterly decline in the index's 21-year history. [ID:nN27484027]

Federal Reserve Bank of Philadelphia President Charles Plosser said that uncertainty about the economy was increasing. Allan Hubbard, a top White House economic adviser, also said risks of a recession have risen. [ID:nN27492513]

Trading was moderate on the NYSE, with about 1.65 billion shares changing hands, below last year's estimated daily average of 1.84 billion. On Nasdaq, about 2.24 billion shares changed hands, above last year's daily average of 2.02 billion.

Advancing stocks outpaced decliner by a ratio of about 9 to 5 on the NYSE and by 5 to 4 on the Nasdaq.

On Monday, major U.S. stock indexes slid 10 percent or more below 52-week highs set last month as investors worried about the impact of the credit crisis.

 

Dow is like yoyo drop 200, + 200 so I am wondering if tmr will drop another 200 again.

 

STOCKS NEWS ASIA-Markets seen firmer after U.S. rise



Asian stocks are set to open firmer on Wednesday after those listed on Wall Street <.BKAS> jumped 3 percent as a $7.5 billion capital injection for Citigroup helped lift confidence in battered financial shares.

Abu Dhabi Investment Authority, the world's largest sovereign wealth fund, is buying a 4.9 percent stake in Citigroup , giving the U.S. banking giant fresh capital as it wrestles with the fallout from the subprime mortgage crisis.

Citigroup shares rose 1.5 percent, while other bank stocks such as India's HDFC Bank , Japan's Mitsubishi UFJ <8306.T> and Australia's Westpac Bank also gained ground.

The rebound in stocks helped push the blue-chip Dow <.DJI> and tech-laden Nasdaq Composite Index <.IXIC> both up about 1.6 percent.

On Tuesday, MSCI's measure of Asia Pacific stocks excluding Japan <.MIAPJ0000PUS> settled 1.0 percent lower, halving losses on the back of the Citigroup stake news.

 

was watching the dow lived via yahoo, 5 mins charts, where i refresh every 5 mins. what a volatile day in low volme trading. lots of swing and rally and massive dips and reversal and no sideway at all!. however, glad to say i am able to spot the movement quite quite well, can capture ard 70% of the movement and reversal. was thinking if i can trade e-mini sure make alot via long and short lol.

 

reading the news really very depressing. especially next month or so when more foreclosures comes out. trillion dollar will be lost. real dollar not just property value drop. the 1997 housing depression in spore also not as jialat as most of us can use cpf to pay but americans no cpf leh, they sure have to forclosure one. the only solutions is for the govt to take the housing loans and give cheap interest to those serious house owners and not those speculators. thats why i dun like fa, damn bleak

anyway back to TA, dow overbought n volume is lower than yest selldown those those money flow out not back yet.

expect dow to drop maybe ard 100+ points before lunch. after lunch hard to say.

 

Agree with you...  

Many will be euphoric, and elated and confident with the Dows green up last night...

But looking at the Dow chart, the downtrend appears is very much intact... looks bad...

 

too much too fast with not really high volume means wont last. either it close lower or if close too high will means tomolo will be red. STI means to sell on rally tomolo. 

 

US STOCKS-Market opens up on Abu Dhabi's Citi stake

U.S. stocks opened higher on Tuesday after Citigroup Inc (C.N: Quote, Profile, Research) got a $7.5 billion capital injection from Abu Dhabi, providing some relief to concerns about whether banks can withstand the mortgage market crisis.

The Dow Jones industrial average (.DJI: Quote, Profile, Research) was up 76.49 points, or 0.60 percent, at 12,819.93. The Standard & Poor's 500 Index (.SPX: Quote, Profile, Research) was up 5.44 points, or 0.39 percent, at 1,412.66. The Nasdaq Composite Index (.IXIC: Quote, Profile, Research) was up 19.96 points, or 0.79 percent, at 2,560.95.

 

Cash for Citi, lower oil could lift Wall Street

After falling into a correction, stocks point higher on $7.5B injection of capital into Citigroup by Abu Dhabi, hopes for oil production increase.

U.S. stocks appeared poised for recovery Tuesday after sinking into a correction the previous session, as investors watched oil prices fall and weighed news that a Middle East government was investing $7.5 billion in embattled Citigroup.

At 6:31 a.m. ET, Nasdaq and S&P futures were stronger, suggesting gains at the market open.

Investors took a big hit on Monday, when the major indexes each fell about 2 percent on the day to leave them down 10 percent from the highs they reached in October. That 10 percent decline marks a correction in stocks and raised concerns about whether further declines lay ahead, which helped push the yield on the benchmark Treasury yield to a 2-1/2 year low as investors fled to the quality of those securities.

There was some reassurance for investors about the nation's financial system late Monday when Citigroup (Charts, Fortune 500) announced that the Abu Dhabi Investment Authority will invest $7.5 billion in the bank in return for stake of no more than 4.9 percent. Shares of Dow component Citi gained 5 percent in early Frankfurt trading. The news also lifted other bank shares trading in Europe.

Oil prices retreated, with the price of a barrel of light sweet crude dropping $1.30 to $96.40 in early trading amid growing expectations that OPEC ministers will agree to raise crude production when they meet in early December.

As stocks attempt to rebound, they'll take in a report on consumer confidence, due at 10 a.m. ET. The Conference Board's November reading is expected to fall to 91.5 from 95.6 in October.

In global trade, markets in Asia finished the session mixed. Japanese stocks gained while Hong Kong stocks fell. European markets were mostly lower in midday trading.

In other corporate news, stocks of cable operators could get a lift Tuesday as a proposal to have the Federal Communication Commission vote to impose tighter control on the industry reportedly ran into trouble.

The Wall Street Journal reported that the FCC might not even hold the scheduled Tuesday meeting due to internal disagreements on the board. Shares of the two largest cable operators, Comcast (Charts) and Time Warner Cable (Charts), both gained in after-hours trading, although shares of Time Warner Cable and parent Time Warner (Charts, Fortune 500) both sank in early Frankfurt trading. CNNMoney.com is also a unit of Time Warner.

Countrywide Financial (Charts, Fortune 500), the nation's largest mortgage lender which late Monday faced calls for a congressional probe into loans made to it by the Federal Home Loan Bank of Atlanta, is set to talk to have management speak to an investors conference at 10 a.m. ET Tuesday.

Homebuilder Pulte Homes (Charts, Fortune 500) said Monday demand for new housing is weak and supply levels are high but the nation's No. 4 builder by revenue reaffirmed its fourth-quarter guidance. Shares rebounded 4.8 percent in after-hours trading on the statement, after losing nearly 5 percent in regular-hours trading earlier in the day.

 

Futures rise on Abu Dhabi stake in Citigroup

Stock index futures jumped on Tuesday, indicating Wall Street would rebound from the previous day's drop, after Citigroup Inc. got a $7.5 billion injection from Abu Dhabi, bolstering confidence that major banks can withstand the mortgage market crisis.

The Citigroup (C.N: Quote, Profile, Research) news may prove a catalyst to help stocks claw out of their November slump, a slide that has dragged major indexes 10 percent or more below 52-week highs set in October. The decline meets the technical definition of a market correction, Wall Street's first in more than four years.

Abu Dhabi Investment Authority, the world's largest sovereign wealth fund, is purchasing a 4.9 percent stake of Citi, the largest U.S. bank.

"The investment by the Abu Dhabi government shows confidence and provides liquidity for Citi, which is at the center of all this financial mayhem," said Peter Dunay, investment strategist at Leeb Capital Management in New York. "Hopefully it will add a sense of stability and add the liquidity that the banks are looking for without relying too much more on the Fed."

Data on home prices, due at 9 a.m. EST and consumer confidence, set for release at 10 a.m. EST, could shed light on the prospects for holiday sales. Stocks got a lift early on Monday from data showing a strong kickoff to the holiday season, but worry about high energy prices and falling home prices has cast a shadow over retailers.

S&P 500 futures were up 13.2 points, above fair value, a mathematical formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract.

Dow Jones industrial average futures rose 90 points, and Nasdaq 100 futures 15.75 points.

On Monday, the Dow Jones industrial average (.DJI: Quote, Profile, Research) ended down 237.44 points, or 1.83 percent, at 12,743.44. The Standard & Poor's 500 Index (.SPX: Quote, Profile, Research) fell 33.48 points, or 2.32 percent, at 1,407.22. The Nasdaq Composite Index (.IXIC: Quote, Profile, Research) lost 55.61 points, or 2.14 percent, at 2,540.99.

Among companies reporting quarterly results on Tuesday are retailers Staples (SPLS.O: Quote, Profile, Research), Talbots (TLB.N: Quote, Profile, Research) and American Eagle Outfitters (AEO.N: Quote, Profile, Research).

 

Let's hope that tonight will be turning point.

The futures indexes are still pretty good now.

US Futures & Markets Indicators

Dec 2007	Change	Level	Last Update?
S&P 500	+16.20	1425.50	11/27 4:56am
Fair Value		NA	11/15 4:14am
Difference*		N/A
NASDAQ	+18.75	2018.75	11/27 4:56am
Fair Value		NA	11/15 4:14am
Difference*		N/A
Dow Jones	+112.00	12884.00	11/27 4:54am

 

DOW is at 5 years weekly up trend support line. once break i dunnoe what to say.