Oil Slips, Wall Street Heads For Higher Open
Stock futures pointed to a higher open Monday as investors remained cautiously upbeat about the recent downturn in oil prices, which dipped further below $114 a barrel even as Tropical Storm Fay headed for Florida.
Light, sweet crude slipped 42 cents to $113.35 a barrel in premarket electronic trading on the New York Mercantile Exchange, after rising in earlier trading.
Despite some worries in the market about Fay disrupting supplies from the Gulf of Mexico, oil remains near its lowest levels since early May, thanks to the dollar’s rebound and growing signs that developed economies around the world are slowing. Russia’s statement Monday that its troops have begun withdrawing from the conflict zone in Georgia also appeared to alleviate concerns about supplies from that region.
Dow Jones industrial futures rose 41, or 0.35 percent, to 11,704. Standard & Poor’s 500 index futures rose 3.20, or 0.25 percent, to 1,302.90, and Nasdaq 100 index futures rose 7.25, or 0.37 percent, to 1,972.75.
Last week, the Dow finished lower, but the S&P and the Nasdaq composite index ended up.
In earnings news on Monday, Lowe’s Cos. posted a nearly 8 percent drop in second-quarter profit. The results were better than expected, but the home improvement retailer also issued a disappointing outlook.
In economic data, the National Association of Home Builders is expected to release its monthly report on the housing market at 1 p.m. Eastern time. Economists surveyed by Thomson Financial/IFR anticipate the index to be flat for August compared to July.
Bonds edged lower ahead of Wall Street’s open. The yield on the benchmark 10-year Treasury note, which moves opposite its price, was at 3.83 percent, down from 3.84 percent late Friday.
On Monday, the dollar retrenched a bit against the euro, pound and yen, while gold prices rose.