Stocks pointed to lower open
NEW YORK (AP) _ U.S. stocks were poised to open lower Monday as Wall Street absorbed a gloomy outlook for the banking sector and anticipated bleak news from the National Association of Homebuilders.
Setting the downbeat tone on Wall Street was Goldman Sachs' downgrade of large banks, and its estimate that Citigroup Inc. would have to write down $15 billion due to its exposure to risky debt over the next two quarters.
Citigroup, which said earlier this month it would likely write down $8 billion to $11 billion in the fourth quarter, declined more than 2 percent in pre-market trading.
Later Monday, the NAHB releases its November housing forecast. Economists polled by Thomson/IFR expect the index to hold at 18, having dropped to that level in October after eight consecutive months of declines.
The worry on Wall Street is that the housing market is getting so weak that it will crimp consumer spending, which until now has helped keep the economy afloat. Ahead of the holiday shopping season, any signs that Americans are pulling back could prevent a December rally.
Home improvement retailer Lowe's Cos., however, showed slightly better profit results than anticipated. Third-quarter net income fell to $643 million, or 43 cents a share, after analysts surveyed by Thomson Financial had projected earnings of 41 cents a share.
Dow Jones industrial futures fell 45, or 0.34 percent, to 13,145. Standard & Poor's 500 index futures dipped 6.40, or 0.44 percent, to 1,453.80. Nasdaq 100 index futures declined 9.25, or 0.45 percent, to 2,046.00.
Celgene Corp.'s announcement late Sunday that it has agreed to buy Pharmion Corp. for $72 a share in a cash-and-stock deal worth $2.9 billion failed to bring any enthusiasm to Wall Street.
Last week, stock market saw wild swings but finished higher. The Dow ended last week up 1.03 percent, the S&P 500 index ended up 0.35 percent, and the Nasdaq finished up 0.35 percent.
Crude oil futures for December delivery rose 65 cents to $94.49 a barrel in pre-opening trading on the New York Mercantile Exchange.
The dollar rose against most other major currencies, but fell against the yen. Gold rose.
Stock markets overseas slumped.
In Asian trading, Japan's Nikkei stock average fell 0.74 percent, while Hong Kong's Hang Seng index decreased 0.56 percent. In European trading, Britain's FTSE 100 declined 0.87 percent, Germany's DAX index dipped 0.73 percent, and France's CAC-40 slid 0.41 percent.