NY to Open Lower before Auto Sales

Elena
04 Sep, 2007
New York City

U.S. stock futures were pointing slightly lower on Tuesday after the long-weekend holiday, with investors awaiting data on monthly auto sales. Automakers are expected to release the weakest sales in August since a strike at GM about ten years ago. The ISM is also due to release its manufacturing survey, which is expected to be above the 50% level that indicates economic growth. Merrill Lynch cut its earnings estimates on 12 stocks, due to a potential possibility of a 65% recession.

[R]09:00AM U.S. stock futures indicated a lower opening ahead of economic data.[/R]

U.S. stock futures were pointing slightly lower on Tuesday after the long-weekend holiday, with investors awaiting economic reports includin data on monthly auto sales. Automakers are expected to release the weakest sales in August since a strike at General Motors about ten years ago.

The Institute of Supply Management is also due to release its manufacturing survey, which is expected to be above the 50% level that indicates economic growth. Merrill Lynch slashed its earnings estimates on 12 stocks, due to a potential possibility of a 65% U.S. recession.

The broker cut its rating on FTI Consulting ((FCN)) to sell from neutral, Heidrick & Struggles ((HSII)) to sell from buy, Korn Ferry ((KFI)) to neutral from sell and Manpower ((MAN)) to neutral from buy. Merrill Lynch also upgraded Iron Mountain ((IRM)) to buy from neutral.

Among other stocks driven by analyst comments, Intel ((INTC)) edged up 0.4% after Banc of America Securities lifted its price target to $31 from $29, boosted by a strong demand for notebook computers. S&P 500 futures fell 3.6 points at 1,473.10 and Nasdaq 100 futures declined 3.75 points at 1,991.00. Dow industrial futures fell 17 points.