Pre-Market Lower Opening

123jump.com Staff
23 Aug, 2006
New York City

Market averages are expected to open lower. Traders are focusing on oil price, semiconductor stocks and report on housing sales and oil inventories. July existing home sales are expected to show another decline in housing market. Weekly Petroleum Inventory report is expected to show a decline of at least 1 million barrels of crude oil. BHP Billiton reports 58% rise in Profit.

[R]9:20AM Pre-Market trading averages expect market to open lower.[/R]
Market averages are expected to open lower despite a fall in oil prices in the pre-market trading. Iran has requested for negotiations to respond to the demands of the U.N. to stop the uranium enrichment process. Traders are also awaiting two economic reports this morning. Weekly petroleum report due in the morning at 10:30 AM and existing home sales report at 10:AM.

Weekly Petroleum Report is expected to show a decline in crude oil and gasoline invenotries of at least 1 million barrels. Housing report for the month of July is expected to show that existing home sales have declined in July. Housing market has been steadily declining for the last six months and has become a subject of intense debate. Increasigly the ‘soft landing’ view is revised by analysts to somewhat approaching ‘hard landig’ in the housing market.

Asian markets closed lower with 0.11% decline in Tokyo. Thailand lost 1.12% and India declined 0.83% in a volatile session. At mid-day European markets are trading lower with 0.3% decline in Frankfurt.

BHP Billiton ((BHP)), Anglo-Australian mining giant, lost 3% in the UK trading on the earnings news. The company reported a profit of $10.45 billion compared to $6.43 billion a year ago on revenue of $39.10 compared to $31.15 billion a year ago. The company also stated that it plans to spend $3 billion to buy back stocks in the next eighteen months.