Mounting economic woes to hit stocks at open

Puntúa la noticia :

Nota de los usuarios: - (0votos)

• Bolsa, mercados y cotizaciones
• Empresas y finanzas

Share

Tweet

elEconomista.es en Twitter

Follow @eleconomistaes

EcoTablet - ¡Gratis en App Store!

La plataforma más completa de información y servicios económicos para iPad.

• Suscribirse al boletín
• Imprimir
• Enviar
• Aumentar texto
• Reducir texto
• Haga doble click sobre una palabra para ver su signifcado
• Sudoku: Juega cada día a uno nuevo
• El tiempo: Consulta la previsión para tu ciudad

By Ellis Mnyandu

NEW YORK (Reuters) - Stocks headed for a slide at the open on Wednesday that would snap the Dow's three-day rally as bleak outlooks from jeweler Tiffany & Co and manufacturer Deere & Co fanned recession fears.

A government report showing that new orders of durable goods had a steeper-than-expected slide in October offered yet more evidence that the downturn is deepening.

"Businesses have shut down, and the consumer has basically frozen his wealth. Along with the credit market, we've seen an economic implosion," said Steve Goldman, market strategist at Weeden & Co in Greenwich, Connecticut. "We're forecasting a very sharp decline in fourth-quarter gross domestic product."

S&P 500 futures fell 14 points and were below fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures declined 115 points, and Nasdaq 100 shed 2 points.

Adding to nervousness, China announced its biggest interest rate cut in 11 years to help cushion a faltering economy and Toyota <7203.T> has had its top-notch credit ratings cut for the first time in a decade.

Analysts said as the market had rallied strongly on Friday and on Monday, there remained a sense that news on the economy was likely to turn gloomier, making it likely investors would opt to take profits off the table, derailing a recovery bid from 11-year lows.

China, a key destination for U.S. exports, slashed interest rates on Wednesday for the fourth time since mid-September, suggesting demand from China for the world's goods will slow.

Fitch Ratings slashed Toyota's long-term foreign and local debt ratings to AA from AAA, with a negative outlook, saying the company needed to review its global investments, product mix and speed of expansion.

The news on Toyota comes just as investors fret about the fate of U.S. automakers, including General Motors Corp , whose executives warned of calamity if Washington did not provide a $25 billion bailout.

Tiffany shares slid 11 percent to $18.55 before the bell after the company forecast a tough selling climate ahead.

Deere, the world's biggest farm equipment maker, posted a lower fourth-quarter net profit, hurt by faltering commercial and consumer demand, and weakness in its financial services arm. Looking ahead, it forecast a lower 2009 profit.

Also trash hauler Waste Management warned of further deterioration in fourth-quarter results. Reports on November consumer sentiment are due at 9: 55 a.m. (1455 GMT) and October new home sales and 10 a.m.

(Additional reporting by Ryan Vlastelica; Editing by Kenneth Barry)

PUBLICIDAD

- Recibe nuestros análisis Diarios sobre Divisas, Acciones y Opciones. ¡Apúntate ya! ¡Es GRATIS!

- Opere en más de 8.000 CFDs. Infórmese y obtenga su CFD Trading Guide

- Nuevos spreads en materias primas: Oro tan sólo 0,3 puntos, Plata 0,25, Petróleo 0,35

- Opera desde 2,95 € en tiempo real con Self Bank.