🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

US STOCKS-Retreating commodity prices set to hit Wall St

Published 06/12/2009, 09:16 AM
Updated 06/12/2009, 09:40 AM
NDX
-
GS
-
XOM
-
MS
-

* Crude oil futures fall nearly 2 percent

* Consumer confidence data on tap

* Futures off: S&P 500 3.7 pts, Dow 20 pts, Nasdaq 6 pts (Updates prices, adds stocks, byline)

By Edward Krudy

NEW YORK, June 12 (Reuters) - Wall Street was set to open lower on Friday as commodity prices fell and investors looked ahead to key consumer confidence data for insight into the prospects for the recession easing.

U.S. crude oil futures dropped nearly 2 percent, helped by a stronger U.S. dollar, after a three-day rally lifted the price over $72 per barrel. Gold hit a 3-week low as the dollar rose almost 1 percent against a basket of currencies.

Shares in natural resource companies headed lower, with Freeport-McMoRan Copper & Gold Inc down 2.4 percent to $58.99 before the bell, and Exxon Mobil Corp off 1 percent to $73.33.

A rally this week in commodity prices helped underpin stock prices, but investors said much higher prices could hurt an economic recovery by increasing costs for consumers and businesses.

"There is no doubt that the rally has coincided with weakness in the dollar and a rise in commodity prices, and today we're seeing a rally in the dollar and weakness in commodity prices," said Peter Boockvar, an equity strategist at Miller Tabak & Co.

"The rally started with a resurgence in the financial sector back in March, then that baton was handed to the reflation trade over the last couple of months, and that's taking a breather this morning."

S&P 500 futures fell 3.70 points and were below fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones Industrial Average futures dropped 20 points, while Nasdaq 100 futures were off 6 points.

The Reuters/University of Michigan index of consumer sentiment, due at 9:55 a.m. EDT, will be closely watched as consumers account for two-thirds of economic activity.

Banc of America-Merrill Lynch cut its earnings estimates for several big banks, including Goldman Sachs Group Inc, whose shares fell 0.7 percent to $144.20; Morgan Stanley, down 0.8 percent to $29.26; and JPMorgan, off 0.5 percent to $34.75.

U.S. stocks racked up gains across a wide array of sectors on Thursday, aided by rising commodity prices and jobless data that showed improving labor market conditions.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.