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U.S. Stocks Head for Higher Open
Wednesday February 6, 7:52 am ET
By Madlen Read, AP Business Writer
U.S. Stocks Head for Higher Open After Tuesday's Drop; Disney Results Beat Expectations


NEW YORK (AP) -- Stocks were poised to open modestly higher Wednesday as uneasy investors sought to buy back into a market battered a day earlier by recession worries.
Better-than-expected profit results from Walt Disney Co. seemed to lift Wall Street's mood. Disney posted a 26 percent decline in profit late Tuesday, but the results beat expectations. The company -- one of the 30 companies that make up the Dow Jones industrials -- reported a 9 percent rise in revenue, thanks in part to the success of brands such as ESPN, "High School Musical" and "Hanna Montana."

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Stocks plummeted Tuesday, sending the Dow down 370 points after the Institute for Supply Management reported a surprising January contraction in the U.S. service sector -- news that bolstered the argument that the nation is in recession. The Dow's nearly 3 percent drop was the widest percentage drop since Feb. 27, 2007.

Government data on fourth-quarter productivity is scheduled to arrive at 8:30 a.m. EST, and could calm economic jitters somewhat if results come in as expected -- showing productivity rising and costs declining. But it's possible investors will remain fairly anxious regardless, particularly after Federal Reserve Bank of Richmond President Jeffrey Lacker said in a speech Tuesday that while the risk of recession has increased, weak growth is more likely and that additional interest rate cuts might not be warranted.

Dow futures rose 26, or 0.21 percent, to 12,346. Standard & Poor's 500 index futures rose 3.80, or 0.28 percent, to 1,347.00, and Nasdaq 100 index futures rose 7.00, or 0.39 percent, to 1,792.00.

In earnings news Wednesday, Time Warner Inc. posted a profit decline in its fourth quarter. But excluding the effect of a year-ago gain from the sale of AOL's online access business in Europe, profit rose due to better results at the media conglomerate's cable TV and movie operations.

Cigna Corp., the health insurer, reported a 13 percent rise in fourth-quarter profit, thanks to higher premiums and fees from specialty insurance and Medicare Part D.

And Toll Brothers Inc. said revenues fell 22 percent during its fiscal first quarter, and that is not "seeing much light at the end of the tunnel."

In addition to earnings, investors will be listening to Fed officials Jeffrey Lacker, Randall Kroszner and Charles Plosser speak Wednesday, as well as Treasury Secretary Henry Paulson, who will be testifying before the Senate Budget Committee.

Politics could also come into play on Wall Street. Investors have been trying to determine who the presidential nominees will be, and while Republican John McCain and Democrat Hillary Clinton are leading the delegate counts after Tuesday's primaries, nothing is certain yet.

The dollar was mixed against other major currencies, while gold prices rose.

Light, sweet crude oil rose 16 cents at $88.57 a barrel in premarket trading on the New York Mercantile Exchange.

Overseas stocks were mixed. Japan's Nikkei stock average dropped 4.7 percent and Hong Kong's Hang Seng index fell 5.4 percent. In Europe, Britain's FTSE 100 rose 0.09 percent, Germany's DAX index rose 0.34 percent, and France's CAC-40 rose 0.33 percent

Andrew Holland of DSP Merrill Lynch said the markets are still too dependent on global funds. He feels global markets will have a difficult time. The US markets are headed for a downturn, he added According to Holland, the focus is shifting on to the next Fed meet. He feels emerging markets are likely to perform going forward.

It is a difficult time for IPOs globally, he said. "However, market sentiment is the main trigger."

He expects FII flows to be positive over the next few months. "About 400 global investors are coming to India for conferences over the next few months."

whole commodities are bullish veg oil, crude, gold,wheat.corn, oats, sugar & cotton then why not stocks.Be ready for bull........... its here........?

usa: dow.. +32

I am with you boss,let's hope for it........................

nasdaq +15.22 dow +77.10

hope you must be feeling relaxed

Dear RakeshMalik,
What will happen tomorrow in our market . can you guess. I hope market NSE may open 50+ tomorrow 7/2/08

i expect open nifty +100 sensex +400 at least with grace of god.

Is There Any Formula To Calculate For Nifty ....h/l/c For Next Day From Todays Dat?i Heard Abt This But No Answer From Anyone......may Seniors Know...AS I TRIED MYSELF BUT FAIL IN VOLATILE MARKET FOR PERFECT FIGURES....