RTTNews - US stocks were poised to take a step back Monday morning in New York amid renewed concerns that equities may have gotten raced ahead pre-maturely and that economic weakness may linger.
As of 6:15 am ET, the S&P Futures were down 12 points, thew NASDAQ Futures were down 18 points, and the Dow Futures were down 93 points. The yield on the benchmark 10-year Treasury note rose to a seven-month high on speculation the Federal Reserve may need to raise interest rates sooner than expected to prevent inflation.
Asian stocks were mixed overnight, with Japanese shares extending their 8-month highs. European stocks lagged behind amid political uncertainty after European election results showed a shift to the right of the political spectrum.
The International Air Transport Association (IATA) said Sunday that the global airline industry will see wider losses than expected this year as demand for travel and cargo traffic has dipped despite the decrease in air fares after fuel costs plunged from last year's record high. The yield on the benchmark 10-year Treasury note rose to a seven-month high.
Packaged food supplier General Mills, Sunday said it was on track to exceed its prior earnings targets for the fiscal year ending May 31, 2009 due to good operating performance and a lower fourth-quarter tax rate. The forecast, however, assumes no mark-to-market valuation as well as gain from asset sale. The company also provided its initial segmental sales outlook for 2010.
A group of Indiana pension funds have reportedly filed an emergency appeal with the U.S. Supreme Court before midnight Saturday to delay the sale of bankrupt automaker Chrysler LLC to a group led by Italian automaker Fiat SpA (FIATY.PK), even as they continue with attempts to block the sale.
The annual Apple Worldwide Developers Conference will begin Monday, with the eyes of the tech world hoping for a Steve Jobs sighting following reports last week indicating he will return to work later this month.
On Friday, stocks were lackluster following an employment report indicative of some signs of life in the labor market.
The report from Labor Department showed that non-farm payroll employment fell by 345,000 jobs in May following a revised decrease of 504,000 jobs in April. Economists had expected a decrease of about 520,000 jobs compared to the loss of 539,000 jobs originally reported for the previous month.
At the same time, the report said that the unemployment rate jumped to 9.4 percent in May from 8.9 percent in April. With the increase, the unemployment rate came in above economist estimates of 9.2 percent and rose to its highest level since August of 1983.
There are no major economic reports due out on Monday. The Commerce Department is due to release its wholesale inventories report at 10 AM ET on Tuesday. Economists expect wholesale inventories at the end of April to show a 1% decline.
For comments and feedback: contact email@example.com