U.S. Stocks Poised For Opening Drop Ahead Of FOMC
NEW YORK (MarketWatch) - U.S. stocks on Monday headed to an opening fall after ex-Federal Reserve Chairman Alan Greenspan offered bleak words on the economy and a U.K. lender's ongoing trouble added to a negative tone ahead of the Fed's interest-rate decision.
"Trading should remain quiet today ahead of the Fed announcement tomorrow afternoon. We expect a 25 basis point cut with no comments alluding to future easing," Melissa Landis, an analyst with Wachovia Corp., wrote in an early note.
Already lower, stock futures maintained their losses after the New York Federal Reserve reported a slight slowdown in manufacturing activity in the New York area in September, with its Empire State Manufacturing index falling to 14.7 points from 25.1 in August. .
Dow industrial futures slid 44 points to 13,410.
S&P 500 futures dropped 7.5 points to 1,490.50 and Nasdaq 100 futures fell 8.50 points to 2,016.50.
Fed Ahead
At the Federal Open Market Committee meeting Tuesday afternoon, the Federal Reserve is expected to trim its federal funds target rate 25 basis points. .
Former Federal Reserve Chairman Alan Greenspan told "60 Minutes" the outlook for the U.S. economy is "pretty gloomy," and the long-term impact on the economy from the current financial market turmoil is not clear.
In Paris, U.S. Treasury Secretary Hank Paulson said the global economy remains healthy, although turbulence in the markets "will take a while to work through."
In overseas trade, shares of British lender Northern Rock fell sharply for a second consecutive session as customers pulled deposits from the bank that had to get emergency funding from the Bank of England. .
Japan's markets were closed for a holiday.
Active issues
In pre-open trade, shares of Microsoft Corp. fell after a European court rejected the software giant's appeal of a 497 million euro (689 million) fine. .
Other stocks likely to move sharply Monday include Leap Wireless Inc. , which rejected a $4.7 billion takeout proposal from MetroPCS Communications Inc. , the providers of wireless-communications services said.
Newell Rubbermaid Inc. shares advanced in pre-market trade after the Atlanta-based products maker raised third-quarter earnings guidance.
ABN Amro's board declined to endorse either of two takeover offers the Amsterdam banking giant has received. .
Deutsche Telekom AG said its T-Mobile unit in the U.S. has agreed to buy SunCom Wireless Holdings for $2.4 billion to expand its customer base in the southeastern U.S. and Puerto Rico. .
Shares of Business Objects gained following reports the French-American business-intelligence software maker is looking for a buyer, with Germany's SAP AG and IBM Corp. among the potential buyers.
In early trade, crude oil futures fell 53 cents to $78.57, while gold futures climbed $5.70 to $723.50.
By Kate Gibson